Index to Nigerian Newspapers

Financial experts have cautioned that Nigeria risks undermining its progress toward re-inclusion in the FTSE Frontier Market Index by implementing a new Capital Gains Tax (CGT) on securities transactions. Although Nigeria has made notable strides in transparency and liquidity within its foreign exchange market, the introduction of CGT,applicable primarily to large equity salescould erode investor confidence and reverse recent gains. Analysts emphasize that the country’s market credibility depends not only on policy announcements but on effective implementation, including improved governance, investor protection, and market infrastructure. Key challenges remain in clearing and settlement efficiency, regulatory coordination, and costly transaction fees, which collectively hinder market development and liquidity. While Nigeria’s efforts to address foreign exchange backlogs and unify exchange rates have been praised, sustained progress requires consistent policies that protect investors and modernize market operations. Experts warn that without addressing these structural weaknesses, Nigeria’s ambitions to regain a stronger position in global indices will remain unmet, highlighting the urgent need for reforms to secure a more transparent, efficient, and predictable financial market environment.