The Nigerian capital still requires concerted efforts and incentives to sustain virile growth and play its roles as major driver of the national economic growth.
Fiscal Policy Partner and Africa Tax Leader, PwC Nigeria, Mr Taiwo Oyedele, said the Nigerian capital market is still at its seed stage and needs nurturing to ensure effective growth.
He said government has to approach taxation with the aim of unlocking prosperity noting that such approach will enable the generation of increased taxes, rather than unintentionally hampering growth with its tax policies.
Oyedele spoke as keynote speaker at a webinar aimed at helping stakeholders gain expert insight into amendments such as the Capital Gains Tax (CGTA); Companies Income Tax Act (CITA); Federal Inland Revenue Service (Establishment) Act [FIRSEA]; Personal Income Tax Act (PITA); Stamp Duties Act (SDA); Tertiary Education Trust Fund Act (TETFEA) and Value Added Tax Act (VATA).
According to him, the tax framework has to be adjusted in specific areas like the imposition of capital gains that had significant impact on investor sentiment but limited tax yield.
“Nigeria needs a capital market that can finance growth and development and position the country for global and regional relevance,” Oyedele said.
He urged stakeholders to do more data coagulation on impact assessment of taxes and present this to government to inform policymaking.
Chief Executive Officer, Nigerian Exchange (NGX), Mr Temi Popoola said the webinar underscored the importance of the Exchange’s leading role in driving capacity building, fostering effective collaboration, deepening and enhancing the liquidity of the Nigerian capital market.
“The amendments made by the Act are part of the expansion of the federal government’s fiscal policy and harmonization with international best practices for the taxation of new areas of the modern global economy and existing economic areas that have not been fully maximized. These changes impact not just the capital market, but commercial companies such as telecommunications, ICT, and oil & gas among others. This webinar is an initiative put forward to sensitize stakeholders and intermediaries in the Nigerian capital market under a common forum to understand the provisions in the Finance Act 2021,” Popoola said.