Tony Osborg

Federalist. Author. Sociopolitical Critic. Procurement Administrator.

[Tony Osborg @tonyosborg]

@yabaleftonline Is this AI or real?

[Tony Osborg @tonyosborg]

@DHSgov Oh, Chim! Lol

[Tony Osborg @tonyosborg]

@RepFine Isn't this a form of colonialism?

[Tony Osborg @tonyosborg]

@camilapress As it should be

[Tony Osborg @tonyosborg]

@jungsungchacn Beautiful

[Tony Osborg @tonyosborg]

@Invaluablemoi This is a debatable issue, so there is no right or wrong approach.

[Tony Osborg @tonyosborg]

@GloOouD Is this not supposed to be a war crime? This guy looks unarmed!!!

[Tony Osborg @tonyosborg]

@Naam_kafi_hai Tony Osborg

[Tony Osborg @tonyosborg]

@taiwoyedele Too much attention in reforming areas to enhance increased revenue with NO reforms in how revenues are spent, i.e., public procurement reforms.

Until we reform and automate our public procurement processes, every attempt to increase revenue will make ONLY politicians richer!!!

[Tony Osborg @tonyosborg]

Too much attention in reforming areas to enhance increased revenue with NO reforms in how revenues are spent, i.e., public procurement reforms.

Until we reform and automate our public procurement processes, every attempt to increase revenue will make ONLY politicians richer!!!

[Taiwo Oyedele @taiwoyedele]

𝐈𝐌𝐏𝐀𝐂𝐓 𝐎𝐅 𝐍𝐄𝐖 𝐂𝐀𝐏𝐈𝐓𝐀𝐋 𝐆𝐀𝐈𝐍𝐒 𝐓𝐀𝐗 𝐑𝐔𝐋𝐄𝐒 𝐎𝐍 𝐓𝐇𝐄 𝐂𝐀𝐏𝐈𝐓𝐀𝐋 𝐌𝐀𝐑𝐊𝐄𝐓

Some stakeholders have expressed concerns regarding the changes introduced to the capital gains tax regime under the new tax reform laws effective from 1 January 2026.

This note provides context to the reform and clarifies the issues that are frequently raised.

𝐐1. 𝐖𝐡𝐚𝐭 𝐢𝐬 𝐜𝐚𝐩𝐢𝐭𝐚𝐥 𝐠𝐚𝐢𝐧𝐬 𝐭𝐚𝐱 (𝐂𝐆𝐓)?

CGT is a tax charged on the profit (or “gain”) made from the disposal of certain assets such as shares and real estate. Only the gain, not the total proceeds, is subject to tax. A flat rate of 10% applies to all chargeable gains under the current laws.

𝐐2. 𝐒𝐨 𝐰𝐡𝐲 𝐡𝐚𝐬 𝐭𝐡𝐞 𝐂𝐆𝐓 𝐫𝐚𝐭𝐞 𝐛𝐞𝐞𝐧 𝐢𝐧𝐜𝐫𝐞𝐚𝐬𝐞𝐝 𝐟𝐫𝐨𝐦 10% 𝐭𝐨 30%?

The CGT rate has not been increased to 30%. Instead, CGT has been integrated into personal and corporate income tax. This means the tax you pay on capital gains depends on your overall income level or company profits, making the system more progressive. Effectively, the applicable CGT rate under the new laws ranges from 0% to 30%.

𝐐3. 𝐖𝐡𝐲 𝐰𝐚𝐬 𝐭𝐡𝐢𝐬 𝐜𝐡𝐚𝐧𝐠𝐞 𝐢𝐧𝐭𝐫𝐨𝐝𝐮𝐜𝐞𝐝?

The reform makes CGT progressive so that low-income earners either pay no CGT or pay less, while higher-income earners contribute a fairer share. It also helps reduce distortions where income could previously be misclassified as capital to enjoy a lower, flat CGT rate.

𝐐4. 𝐇𝐨𝐰 𝐝𝐨𝐞𝐬 𝐭𝐡𝐞 𝐧𝐞𝐰 𝐥𝐚𝐰 𝐛𝐞𝐧𝐞𝐟𝐢𝐭 𝐢𝐧𝐯𝐞𝐬𝐭𝐨𝐫𝐬?

-CGT only applies to net gains, since capital losses can be offset against capital gains.

-Proceeds from sales not exceeding ₦150 million annually where the gains are not more than ₦10 million, are exempt. This means about 99% of individual investors are effectively exempt.

-Where the proceeds exceed the exemption threshold, CGT is not due if such proceeds are reinvested into the shares of a Nigerian company.

-Institutional investors such as pension funds are exempt from CGT, just as they are from corporate income tax.

-Companies undergoing reorganisations, mergers, or restructurings are not subject to CGT on those transactions.

𝐐5. 𝐈𝐬 𝐭𝐡𝐢𝐬 𝐫𝐞𝐟𝐨𝐫𝐦 𝐦𝐞𝐚𝐧𝐭 𝐭𝐨 𝐢𝐧𝐜𝐫𝐞𝐚𝐬𝐞 𝐠𝐨𝐯𝐞𝐫𝐧𝐦𝐞𝐧𝐭 𝐫𝐞𝐯𝐞𝐧𝐮𝐞?

No. CGT revenue is historically very small, less than 2% of what is collected from Companies Income Tax (CIT) and Value Added Tax (VAT). The reforms are about harmonisation, fairness and efficiency. In fact, businesses will benefit far more from reduced CIT rates and broader VAT input credits. For instance, the FIRS collected only ₦52 billion from CGT in 2024 compared to over ₦15 trillion from CIT and VAT. The reduced CIT rate and broader VAT credit is estimated to benefit businesses in the region of ₦4.5 trillion.

𝐐6. 𝐖𝐡𝐚𝐭 𝐚𝐛𝐨𝐮𝐭 𝐟𝐨𝐫𝐞𝐢𝐠𝐧 𝐢𝐧𝐯𝐞𝐬𝐭𝐨𝐫𝐬?

Most foreign investors can claim tax credits in their home country for taxes paid in Nigeria, under double taxation agreements or unilateral tax relief. This means CGT paid in Nigeria will often not be an additional cost.

𝐐7. 𝐖𝐢𝐥𝐥 𝐭𝐡𝐞𝐬𝐞 𝐜𝐡𝐚𝐧𝐠𝐞𝐬 𝐦𝐚𝐤𝐞 𝐍𝐢𝐠𝐞𝐫𝐢𝐚 𝐥𝐞𝐬𝐬 𝐚𝐭𝐭𝐫𝐚𝐜𝐭𝐢𝐯𝐞 𝐟𝐨𝐫 𝐢𝐧𝐯𝐞𝐬𝐭𝐦𝐞𝐧𝐭?

No. The new rules are consistent with international best practice. Many countries already apply progressive tax treatment to capital gains, and exemptions for small investors and reinvestment make Nigeria’s regime competitive. When considered holistically, the lower CIT rate and broader input VAT credit in the new tax laws will improve profitability of companies, equity valuations, and enhance overall investor returns.

𝐐8. 𝐃𝐨𝐞𝐬 𝐭𝐡𝐞 𝐂𝐆𝐓 𝐫𝐞𝐟𝐨𝐫𝐦 𝐚𝐩𝐩𝐥𝐲 𝐨𝐧𝐥𝐲 𝐭𝐨 𝐭𝐡𝐞 𝐜𝐚𝐩𝐢𝐭𝐚𝐥 𝐦𝐚𝐫𝐤𝐞𝐭?

No. The CGT reform applies to all chargeable assets, unless specifically exempt. Examples of exemptions in addition to the threshold for shares include:

-Individuals selling up to two personal vehicles per year.

-The sale of an owner-occupied residential property.

𝐐9. 𝐃𝐨 𝐭𝐡𝐞 𝐫𝐞𝐟𝐨𝐫𝐦𝐬 𝐚𝐝𝐝𝐫𝐞𝐬𝐬 𝐢𝐧𝐟𝐥𝐚𝐭𝐢𝐨𝐧 𝐚𝐧𝐝 𝐞𝐱𝐜𝐡𝐚𝐧𝐠𝐞 𝐫𝐚𝐭𝐞 𝐫𝐢𝐬𝐤𝐬?

Not directly. Inflation and currency risks affect all investments and cannot be eliminated through tax laws. Investors are expected to manage these risks as part of their broader investment strategies.

𝐐10. 𝐖𝐡𝐞𝐧 𝐝𝐨 𝐭𝐡𝐞𝐬𝐞 𝐜𝐡𝐚𝐧𝐠𝐞𝐬 𝐭𝐚𝐤𝐞 𝐞𝐟𝐟𝐞𝐜𝐭?

The changes will come into effect from 1 January 2026. Details regarding application to existing investments, historical cost, and compliance requirements will be covered under implementation guidelines with inputs from stakeholders.

𝐊𝐞𝐲 𝐓𝐚𝐤𝐞𝐚𝐰𝐚𝐲: The reforms make CGT fairer, protect small investors, align Nigeria with global best practice, and provide wider tax reliefs that benefit businesses more than the limited CGT collections.

- 𝑷𝒓𝒆𝒔𝒊𝒅𝒆𝒏𝒕𝒊𝒂𝒍 𝑭𝒊𝒔𝒄𝒂𝒍 𝑷𝒐𝒍𝒊𝒄𝒚 𝒂𝒏𝒅 𝑻𝒂𝒙 𝑹𝒆𝒇𝒐𝒓𝒎𝒔 𝑪𝒐𝒎𝒎𝒊𝒕𝒕𝒆e

[Tony Osborg @tonyosborg]

@SirJarus Link?

[Tony Osborg @tonyosborg]

@DrJoeAbah What happened to pension, life/health insurance, and the rest?

Imagine in 10 years' time, the same players who got $100k each recently coming out to cry for help

Public people who earn good pay should be forced to save for the future like the rest of us do in the private sector

[Tony Osborg @tonyosborg]

@Omojuwa @officialABAT @ubecnigeria @AishaMGarba Under a proper federal system, the FG has no direct relationship with primary education, be it funding or supervision.

Until then, let's continue to exploit the unscrupulous opportunities that prebendalism provides under the current system of contracts racketeering via emilokan

[Tony Osborg @tonyosborg]

The ideal implication of students loan is that fees will go up, govt will stop funding the universities and the universities will become completely autonomous, bringing an end to @asuunews strikes.
The idea of student loan is meaningless if govt is still funding universities!

[Tony Osborg @tonyosborg]

There is something fundamentally wrong with @NELFUND funding arrangement for university students.

If students are now paying tuition via interest-free loans, then participating universities should no longer be captured in the govt budget as that would amount to dual funding!

[Tony Osborg @tonyosborg]

@OfficialNUC and the @NGRPresident should look into this anomaly and reconcile the abnormality.
The original idea is that fees should fund the universities, not govt budget. Now we are doing both. What then is the benefit of the loan as a way of reducing recurrent expenditure?

[Tony Osborg @tonyosborg]

Brilliant move in the interest of the country but could lead to the collapse of the entire logistics chain around petrol product marketing.

We all should brace up for the positive impact of this creative destruction that is about to hit the petroleum product marketing industry!

[Dangote Group @DangoteGroup]

DANGOTE PETROLEUM REFINERY TO BEGIN DISTRIBUTION OF PMS AND DIESEL NATIONWIDE

...Deploys 4,000 CNG Tankers To Enhance Distribution Network Nationwide

…Offer open to Marketers, Petrol Dealers, Manufacturers, Telecoms Firms, Aviation and other large users

Dangote Petroleum Refinery is pleased to announce the commencement of a significant national initiative designed to transform Nigeria’s fuel distribution landscape. Effective 15th of August 2025, the Refinery will begin the distribution of Premium Motor Spirit (PMS) and diesel to marketers, petrol dealers, manufacturers, telecoms firms, aviation, and other large users across the country, with free logistics to boost distribution network.

To ensure smooth take-off of this scheme, Dangote Refinery has invested in the procurement of 4,000 brand-new Compressed Natural Gas (CNG)-powered tankers. This phase of the programme will continue over an extended timeframe. The refinery is also investing in Compressed Natural Gas (CNG) stations, commonly referred to as daughter booster stations, supported by a fleet of over 100 CNG tankers across the country to ensure seamless product distribution.

This strategic programme is part of our broader commitment to eliminating logistics costs, enhancing energy efficiency, promoting sustainability and supporting Nigeria’s economic development. It affirms our dedication to improving the availability and affordability of fuel, in support of broader efforts to strengthen the economy and improve the well-being of all Nigerians.

Under this initiative, all petrol stations purchasing PMS and diesel from the Dangote Petroleum Refinery will benefit from this enhanced logistics support. Key sectors such as manufacturing, telecommunications, and others will also gain from this transformative initiative, as reduced fuel costs will contribute to lower production costs, reduced inflation, and foster economic growth. Players in these key sectors and others can purchase directly from the Dangote Petroleum Refinery.

In addition, the refinery will offer a credit facility to those purchasing a minimum of 500,000 litres—allowing them to obtain an additional 500,000 litres on credit for two weeks, under bank guarantee.

This pioneering effort marks a major milestone in our vision to revolutionise Nigeria’s energy sector. Dangote Refinery is dedicated to ensuring that no place is left behind. Our goal is to provide equitable access to affordable fuel for all Nigerians, regardless of location, making energy more accessible and sustainable for everyone, wherever they may be.

It is expected to revitalise previously inactive petrol stations, thereby driving job creation, stimulating small and medium-sized enterprises (SMEs), increasing government revenue, improving fuel access in rural and underserved communities, and strengthening investor confidence in Nigeria’s downstream petroleum sector.

This initiative is inline with the Renewed Hope Agenda of His Excellency, President Bola Ahmed Tinubu, reflecting our shared commitment to economic progress, stability, and inclusive development. We sincerely thank the Federal Government for its continued support, especially through the Naira-for-Crude scheme, which has helped stabilise fuel supply amid global price volatility. It marks a major revolution in the midstream and downstream sectors and stands as a key example of President Bola Tinubu’s bold and reformative economic policies.

We invite marketers, petrol dealers, manufacturers, telecom companies, and all key stakeholders to embrace this landmark initiative. The registration process, including Know Your Customer (KYC) verification, will take place from 16 June to 15 August, spanning a total of 60 days. For enquiries, please call [phone], [phone], [phone], [phone], [phone]. Email: Email: [email protected].

Dangote Petroleum Refinery remains a proud partner in this national journey— a truly Nigerian company of global standards, dedicated to the well-being of all Nigerians.

[Tony Osborg @tonyosborg]

@DangoteGroup Brilliant move in the interest of the country but could lead to the collapse of the entire logistics chain around petrol product marketing.

We all should brace up for the positive impact of this creative destruction that is about to hit the petroleum product marketing industry!

[Tony Osborg @tonyosborg]

@ndulewe "Let the strongest survive"

We are back to the Hobbessian era!

Might is right, and justice is reserved for only the strongest.

Our sad reality

[Tony Osborg @tonyosborg]

The irony of the Isreal-Iran conflict is that Isreal preemptively attacked Iran for exactly the same reasons Russia preemptively attacked Ukraine!

Yet, the outcome and backlash will be completely different.

USA and most part of the world will not impose sanctions on Isreal or