Investors - Housing TV Africa

Market Slumps as 25% Capital Gains Tax, Trump Threat Unsettle Investors

housingtv — Fri, 07 Nov 2025 06:38:06 +0000

Nigeria’s stock market witnessed a sharp decline on Tuesday as fears over a proposed 25 percent capital gains tax and renewed U.S. threats unsettled investor confidence.

Market analysts attributed the bearish trend to panic sell-offs by both institutional and retail investors seeking to secure profits ahead of the possible implementation of the tax.

The uncertainty was further compounded by reports of heightened diplomatic tension following U.S. presidential candidate Donald Trump’s warning of potential sanctions and economic strikes against nations accused of financial mismanagement, including Nigeria.

As a result, the All-Share Index recorded a notable drop, with losses in key sectors such as banking, oil and gas, and industrial goods. Market capitalization also fell significantly, reflecting declining investor sentiment.

Financial experts have urged the Federal Government to clarify its position on the capital gains tax proposal, noting that such ambiguity could drive away both local and foreign investors at a time when Nigeria’s economy is struggling to stabilize.

They also called for calm, emphasizing that reactionary policies and global uncertainties should not derail the gradual recovery of the capital market.

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Investors Unimpressed by Nigeria’s New Capital Gains Tax Reforms

housingtv — Thu, 23 Oct 2025 04:59:29 +0000

International investors have expressed disappointment after a virtual call with Taiwo Oyedele, head of the Presidential Committee on Fiscal Policy and Tax Reforms, over Nigeria’s new Capital Gains Tax (CGT) policy.

The meeting, organised by Standard Chartered, was meant to clarify the reforms but left many uneasy. Some investors described Oyedele’s tone as “ideological,” saying his comments seemed unfriendly to markets.

Oyedele explained that the new CGT is progressive and aligns with practices in the U.S., U.K., and South Africa, replacing the old flat 10% rate. However, several participants said the policy could hurt Nigeria’s competitiveness and investor confidence.

Others criticised the lack of clarity between how OMO holders and equity investors will be taxed. “If they want CGT, they should apply it uniformly,” one fund manager said.

Still, some analysts believe the reform could attract longer-term investment and reduce speculative inflows.

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New Tax Law Offers Relief for Home Buyers, Renters, and Investors

housingtv — Tue, 19 Aug 2025 08:08:54 +0000

Nigeria’s newly introduced tax law is being described as a game-changer for the real estate sector, with experts highlighting its far-reaching benefits for home buyers, renters, developers, and investors.

One of the biggest advantages is the removal of value-added tax (VAT) on land and residential property sales, including rental transactions. This is expected to reduce overall construction costs and make housing more affordable. “This law creates real cost savings for buyers and renters. Exempting residential property from VAT lowers transaction costs and reduces the burden of rent and purchase,” an industry expert explained.

The law also provides capital gains tax exemptions on the disposal of personal residential properties, creating opportunities for homeowners to save more when selling. Another provision exempts leases below ₦10 million per month from stamp duty, a move that eases the burden on tenants. In addition, benefits in kind (BIK) valuation for individuals has been capped at 20 percent of annual salary, ensuring more predictable taxation.

Developers and construction firms are also expected to benefit significantly. Imported building materials, which form a large part of Nigeria’s construction costs, are now VAT-exempt. “For developers, this is a huge relief. The removal of VAT on input materials will directly lower costs and, by extension, make housing projects more viable,” one stakeholder noted.

Small and local contractors will now pay a lower withholding tax (WHT) of 2 percent, down from 2.5 percent, while foreign contractors will pay 5 percent. For investors and real estate investment trusts (REITs), the law introduces a WHT exemption on dividend distributions, a measure that experts say will attract fresh capital into the sector.

Real estate investors believe the reforms could spark renewed activity in commercial property markets as well. “There will be a significant boost in investor participation because the law eases tax burdens and encourages long-term commitments in real estate,” an analyst said.

Industry leaders also stressed the importance of aligning tax reforms with better land administration. “Real estate in Nigeria is locked-down wealth. If states ensure proper land title registrations, it will improve financial systems, attract investments, and strengthen mortgage insurance,” a developer observed.

The consensus across stakeholders is that the new tax law not only reduces costs for individuals and institutions but also positions real estate as a stronger driver of economic growth. “These reforms are unlocking opportunities that will enhance home ownership, expand mortgage access, and deepen investment in Nigeria’s property market,” another stakeholder emphasized.

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NITP Investiture- Enugu Governor Promises a Favorable Land Administration System for Investors

housingtv — Sun, 08 Dec 2024 20:56:44 +0000

The Governor of Enugu State, Peter Mbah, has reiterated his administration’s dedication to fostering a business-friendly environment through innovative land administration policies and legal reforms.

Speaking during the investiture of Dr. Chime Ogbonna as the 26th National President of the Nigerian Institute of Town Planners (NITP) in Enugu on Saturday, Mbah emphasized the significance of the Enugu State Property Protection Law, commonly referred to as the anti-land-grabbing law. This legislation aims to promote transparency, accountability, and sustainable urban development by curbing illegal land acquisitions.

Represented by the Commissioner for Lands and Urban Development, Chimaobi Okorie, the governor highlighted the administration’s progress in enacting pivotal laws to enhance urban planning and land management. These include the Enugu State Geographic Information System Law, the New Enugu City Development Law, and the Enugu State Ranch Management Law.

He assured investors of a secure and enabling environment for their ventures, stating, “Enugu State is the most secure and peaceful state in the country. We have derisked investment flow through flexible land policies and strengthened our security architecture to ensure sustainable growth.”

Mbah urged both local and international investors to see Enugu as a prime investment destination with high returns.

Ogbonna Promises Transformative Leadership for NITP

Dr. Chime Ogbonna, in his inaugural address as NITP President, pledged transformative leadership focused on sustainable urban development across Nigeria. Drawing from his extensive experience within the institute, he committed to driving the full implementation of the 1992 Urban and Regional Planning Law, which he described as essential for tackling the nation’s environmental challenges.

Ogbonna highlighted the importance of comprehensive urban and regional planning frameworks to guide Nigeria’s physical development, advocating for increased government awareness of planned settlements.

Expressing concern over the declining enrollment in urban and regional planning programs, he called for more employment opportunities for graduates in the sector.

He also commended the Tinubu administration for establishing the Ministry of Housing and Urban Development and appointing Architect Ahmed Dangiwa as its minister. Ogbonna described these developments as a positive shift for urban and regional planning in Nigeria.

The event attracted dignitaries from various sectors, marking a milestone in advancing urban planning and fostering collaboration for a better-planned Nigeria.

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Inflation and Dollar-Denominated Materials Drive Up Housing Costs, Say Investors

housingtv — Wed, 06 Nov 2024 07:28:48 +0000

Investors in Nigeria’s housing sector have expressed concerns that inflation, rising cement prices, and the cost of dollar-denominated building materials significantly impact housing costs and their business operations.

Industry players highlighted that the volatility of the foreign exchange market and the increasing cost of cement are contributing to longer delivery timelines, forcing them to secure additional funding to complete ongoing projects.

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During the handover ceremony of the newly built Cello Luxury Apartment 1 in Lekki, the Managing Director of Leadroitt Realty Limited, Mrs. Gbemisola Ojerinde, shed light on the challenges investors face in the current market. She revealed that to mitigate the effects of inflation, her company had resorted to advance purchasing of materials.

“We face the challenge of inflation; It is so bad. For example, the price of cement at the time we started this project was N3000, and today it’s N8300. The prices of many other items, especially those denominated in dollars, have skyrocketed, and this remains a major challenge. You’ll see that housing costs continue to rise,” Ojerinde said.

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She added that to minimize the pressure, her firm secured materials in advance through forward contracts, including lifts, generators, and other essential items. Despite being impacted by inflation, the company was able to cushion the pressure on their operations.

Similarly, Senior Investment Adviser at Leadroitt Realty Limited, Damilola Adeniran, noted that the skyrocketing prices of building materials have caused substantial increases in the cost of completing projects within their set timelines.

“The cost of building an apartment in Nigeria has risen significantly compared to three to five years ago. The instability in FX and the price hikes of materials that are dollar-denominated are affecting the industry,” Adeniran said.

Despite these challenges, Ojerinde emphasized the importance of adhering to regulatory standards and utilizing quality materials, underscoring the industry’s responsibility to maintain high construction standards regardless of the prevailing economic challenges.

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