The Federal Government has introduced new fiscal measures to reduce investment risks and improve profitability across key sectors as part of a broader effort to strengthen investor confidence and enhance transparency in the Nigerian business environment.
At the 2025 Annual Meetings of the World Bank and International Monetary Fund in Washington D.C., the Special Adviser to the President on Finance and the Economy, Sanyade Okoli, said the reforms are designed to create a fair, predictable, and competitive tax framework capable of attracting long-term capital.
According to her, the government has now allowed investors to offset capital losses against capital gains, providing a clearer framework for risk management and portfolio recovery.
She added that companies will benefit from expanded deductions on Value Added Tax (VAT) and capital expenditure, which will lower effective tax obligations and improve post-tax returns.
Okoli explained that the measures were shaped by feedback from both domestic and foreign investors who sought greater clarity on capital-gains rules and corporate-tax administration.
She said the new framework eliminates previous ambiguity between income and capital classifications, while adopting a progressive structure that protects smaller investors and low-income participants.
She noted that the government’s broader objective is to align fiscal policy with international best practices, promote equitable taxation, and strengthen the credibility of Nigeria’s fiscal management system.
The Deputy Governor in charge of Economic Policy at the Central Bank of Nigeria (CBN), Mohammed Sadi Abdullahi, confirmed that consultations between fiscal and monetary authorities on the revised capital-gains regime were nearing completion.
He said the process is intended to ensure policy coordination and stability before any formal announcement is made.
Abdullahi emphasised that the review will support sustained market confidence, noting that investor engagement is critical at a time when the Nigerian Exchange has gained almost 40 percent this year. He said maintaining clarity on taxation will help sustain momentum in both equity and debt markets.
Addressing the country’s external-funding outlook, Abdullahi disclosed that the government plans to raise $2.3 billion through a new Eurobond issuance later in the year. Proceeds from the transaction will be used to refinance a $1.18 billion Eurobond maturing in November and to strengthen Nigeria’s foreign-reserve position.
He added that the 2025 domestic borrowing programme had been fully subscribed, reflecting renewed investor confidence in government securities and improved coordination between fiscal and monetary authorities.
On liquidity management, the CBN has implemented a 75 percent Cash Reserve Ratio (CRR) on non-Treasury Single Account public-sector deposits to curb excess liquidity and contain inflationary pressures.
Abdullahi said this measure complements the fiscal reforms by preserving monetary stability and ensuring that liquidity growth remains aligned with policy targets.
The combination of these fiscal and monetary measures signals the government’s commitment to rebuilding investor trust through predictable taxation, credible debt management, and transparent policy communication.
Analysts believe that allowing loss offsets, clarifying capital-gains treatment, and expanding corporate deductions will improve Nigeria’s risk profile ahead of its return to the international capital market.
By pursuing coordinated reforms, the administration aims to consolidate fiscal discipline, encourage reinvestment, and position Nigeria as a competitive destination for long-term private capital.