By Chiagoziem Abosi
Edited by Sunkanmi Adewunmi
When the Federal Government announced plans to review Nigeria’s Capital Gains Tax (CGT), many business owners in Lagos quietly sighed in relief. For years, entrepreneurs have complained that the tax charged when a person sells an asset like land, property, or company shares often eats deep into their profit margins.
In a city like Ikeja, where small businesses and property investments are the lifeblood of the economy, this reform could mean new opportunities.
According to the Minister of Finance, Wale Edun, the review aims to make the system friendlier to investors and small businesses, encouraging them to reinvest profits rather than stash them away. In plain terms, the government wants to reduce the tax burden on people who are building and expanding businesses.
For people like Mrs. Chioma Adebanjo, who runs a growing fashion factory near Awolowo Way, the news is more than just another policy headline.
“Last year, I sold a small plot of land in Agege to raise money for new machines, but the tax I paid was almost the same as what I spent transporting them,” she told IkejaBird. “If this reform means lower rates or better exemptions, that’s a huge help.”
The review is also expected to make it easier for small-scale property developers and startup investors to sell assets without losing too much to tax deductions. Financial experts say this could encourage more young entrepreneurs to explore asset ownership as part of their business model.
However, some analysts warn that reforms alone aren’t enough.
“The problem has always been in how these policies are implemented,” said Lagos-based tax consultant, Oluwatobi Olalere. “We need clarity, education, and consistent enforcement so that small business owners don’t get confused or overtaxed.”
For now, business owners in Ikeja are watching closely, hoping the new review will translate into real relief and not just another economic promise on paper.
If implemented effectively, the CGT reform could give Lagos entrepreneurs one thing they’ve been asking for all along a fairer chance to grow
