Capital Gains Tax: We want partners, not speculators- Edun
Following threats by foreign investors to freeze about $3 billion in potential investment to Nigeria, the federal government has opened talks with investors and financial stakeholders on concerns around capital
Following threats by foreign investors to freeze about $3 billion in potential investment to Nigeria, the federal government has opened talks with investors and financial stakeholders on concerns around capital gains tax and private equity investments.
Addressing journalists on Friday in Abuja, the Minister of Finance and Coordinating Minister of the Economy Mr Wale Edun explained that the federal government want long-term funding that creates jobs and supports real economic growth.
Edun, said government officials are ready to engage investors who have raised questions about how capital gains tax applies to their investments. He explained that discussions are ongoing through the Tax Implementation Committee to ensure the rules are fair while still protecting government revenue.
According to him, “We welcome patient capital that stays, builds businesses, creates jobs and adds value, not speculative funds that come in and leave quickly.”
With regards to funding for revenue generating agencies, Edun said improving revenue collection and transparency is a major part of the government's economic plan.
He noted that technology is now being deployed across ministries, departments and agencies to track collections and block leakages. “All revenue-collecting agencies are moving onto a single digital platform so payments can be seen clearly and reconciled in real time,” he said, adding that the aim is to stop waste and ensure government receives what it is due.
Edun noted that agencies are also being reviewed to confirm their spending is within legal limits, since existing financial rules require them to remit a large portion of what they generate.
The minister also spoke on changes to Nigeria's budget process, saying the country is working to maintain a stable January-to-December fiscal cycle. He said past overlaps between budgets created pressure because the same revenue source sometimes funded more than one spending plan.
“What we are doing now is aligning releases with actual funding so government does not commit money it has not yet received,” he said. He added that the reform is meant to make public finance management more predictable and reduce the risk of unpaid obligations.
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On investment opportunities, Edun said the government is open to proposals from private investors interested in managing or partnering on public assets such as airports and seaports. He explained that some assets have already been listed for possible concession, while others may be considered if proposals show clear economic benefits.
“There is no sector that is closed to serious investors who want to bring ideas, funding and efficiency,” he said, noting that such partnerships can help raise funds, improve services and reduce pressure on public finances.
Turning to oil revenue, Edun confirmed that a forensic audit of the finances of the Nigerian National Petroleum Company is underway under the supervision of the Federation Account Allocation Committee. He said the review is examining deductions and charges affecting what eventually reaches the Federation Account. He also said the Federal Executive Council has set up a subcommittee that includes state representatives to ensure the process is implemented smoothly.
Edun explained that the new executive order requires certain revenues, including management fees, frontier exploration funds and gas flare penalties, to be paid directly into the Federation Account. “This is about transparency and accuracy so that every tier of government receives its rightful share,” he said, noting that the directive is already in effect and does not stop any ongoing institutional or legislative reviews.
