Nigerian Exchange Limited (NGX) organised a webinar on the impact of the 2021 Finance Act on the operating environment as part of its commitment to building the capacity of stakeholders in the capital market.
The event, themed “Capital Market Advancement and the Implications of the 2021 Finance Act” organised in conjunction with the Association of Securities Dealing Houses (ASHON), Chartered Institute of Stockbrokers (CIS), and PricewaterhouseCoopers (PWC) focused on helping stakeholders garner 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).
Giving his opening remarks, Temi Popoola, Chief Executive Officer, NGX underscored the importance of the event as the Exchange plays a leading role in driving capacity building, fostering effective collaboration, deepening and enhancing the liquidity of the Nigerian capital market.”
He said, “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.”
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The keynote speaker, Taiwo Oyedele, Fiscal Policy Partner and Africa Tax Leader, PwC Nigeria during his lecture noted that the capital market is still at its seed stage and needs nurturing to ensure effective growth. For this reason, he said that the government had to approach taxation with the aim of unlocking prosperity, which will enable the generation of increased taxes, rather than unintentionally hampering growth with its tax policies.
Noting the implications on the market, Oyedele said the tax framework had 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.”
Responding to questions, he recommended that stakeholders should do more data coagulation on impact assessment of taxes and present it to government to inform policymaking.
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