The National Revenue Service has clarified that the recent share sell-down by MTN Nigeria did not introduce any new tax measures, explaining that the transaction is covered by existing Capital Gains Tax regulations under the country’s current tax laws.
In a statement, the agency said the clarification was necessary to ensure transparency and provide clarity to investors following widespread discussions in the financial market. The move, according to the NRS, is part of ongoing efforts to maintain investor confidence and uphold the integrity of the Nigerian capital market.
The NRS explained that the share sale by MTN Nigeria has become a reference point for applying Capital Gains Tax and related fiscal provisions under the administration’s reformed tax framework. It stressed that large-scale equity transactions are subject to fair and consistent treatment to promote a competitive investment climate while safeguarding government revenue.
The clarification addressed key questions about the 10 percent Capital Gains Tax on the disposal of shares, especially when such transactions exceed the legal threshold. It reaffirmed that the rules guiding the tax are already established and designed to encourage responsible investment.
The agency listed three major highlights of its position. It reaffirmed the specific conditions under which Capital Gains Tax applies to the sale of shares in Nigerian companies to optimize revenue collection without affecting market liquidity. It also highlighted investor protections, such as incentives for reinvestment and mechanisms that prevent double taxation on returns. Additionally, the NRS said it is working closely with the Securities and Exchange Commission and the Nigerian Exchange Group to ensure accurate and timely processing of related tax filings.
Speaking on the development, the Executive Chairman of the National Revenue Service, Dr. Zacch Adedeji, said the agency’s focus is on building trust and supporting the business environment. “The recent activity surrounding MTN Nigeria’s shares demonstrates the vibrancy of our capital markets,” he said. “Our role is to provide a clear, predictable fiscal roadmap. By clarifying the tax obligations for such significant transactions, we are reinforcing Nigeria’s position as a transparent and attractive destination for both local and foreign institutional capital.”
Dr. Adedeji added that the NRS will continue to engage with blue-chip companies and investors to simplify compliance, reduce disputes, and support the Federal Government’s economic stability goals.
