Nigeria to Triple Capital Gains Tax for Foreign Equity Investors

Nigeria is tripling capital gains tax for foreign equity investors, raising concerns that the move may trigger a sell-off in the West African nation’s stock market, which is up almost 40% this year.

Foreigners will face 30% CGT on the sale of Nigerian shares from January unless the proceeds are reinvested in other listed or unlisted domestic equities. The change is part of a new tax law and lifts CGT on foreigners from a current rate of 10%, which is not widely implemented.

“A higher cost of equity means that Nigerian businesses will have to make higher sustainable returns to ...