₦airaland Forum

jonnysessy:
Happy New Year to you too.

Please, confirm Stockpromoter and Locotrader is one and the same person.

It's easier to recognize Locotrader as a morphosis of Locodemy. This one seems harder to cram 😁

Agbalowomeri:
Okay here comes the media hype

That's the major purpose the ASI serves. That's why we like when it's pretty.

Most personal finance coaches on social media will start singing this numbers now, momentum will build, and while you're still expecting 120k or 80k as you said during the November crash, some of us will cash out on 180k market this month. 😁😁😁

Streetinvestor2:
.
So based on this new law no one can really say what happens every new yr as tax is an annual calculation. Abi the bench mark starting today will remain for the rest of ngx existence or it resets every new yr..I am asking for stocks already in someone portfolio That Oyedele just collected billions and scammed this country for no proper detailed work

The "benchmark" (cost price) starting today is what will be used as your cost basis any time you sell.

If you hold PRESCO till 2030 and sell at 7000, it would be assumed you bought it at 1450 regardless of how much you actually paid for it. (Except if you paid over 1450)


The complexities arise when you're doing multiple entry and exists. But i think there won't be any complexities if we interprete the law as is.

It says, profits from share sales are taxable unless the proceeds are reinvested.

The only reference to aggregate sales is to determine whether or not you've hit N150m threshold. That N150m threshold does not apply to reinvestment. It's a separate exemption clause altogether.

That's my simple interpretation.

If for whatever reasons, they decide to complicate things, then there are also ways to get get maximum exemptions, especially if NGX gains are not your only means of livelihoods and you can wait up to 12 months before withdrawing your gains. (That's just in a worse case implementation scenario)

Streetinvestor2:
That means every first January of a new yr is a reset day for that yr tax from thr law

That's just in case they adopt a complex interpretation like Namaster is suggesting.

It's quite likely that they'll just interprete the law as is, where it says gains are not taxable once proceeds are reinvested. Simple!

onegentleguy:
It's a new down fine people!

First, we must thank God Almighty for the most peerless privilege of life and continues guidance.
...honestly, we can never thank him enough!

It's hello 2026!
There can be no better way to begin the year than the noble act of giving--extending a helping to those in need.
You don't necessarily need to look too far away; just start where you are. Visit the nearest Hospital, Care Center or Orphanage Home near you today. You can also reach out to a family member/loved one, friends or even a stranger in need of a shoulder to lean on.
Nothing can be deemed too small. As I always tell folks; value isn't a function of amount but of intent and impact.

As we mark the beginning of another year, we earnestly pray that God will continue to direct our actions and inactions, grant us strength in health and immeasurable blessings; and enlarge our experience of joy in ways that surpass human understanding.

For us @ FINMAP, 2025 was a beautiful year with so many pockets of great WINS.
Divine on our side, 2026 will be even BETTER!
Here's raising a glass to a fruitful and fulfilling experience this year and beyond. 🥂🥂
May we all live as long as we want, and never want as long as we live and may the best of 2025 be the smallest of milestones in 2026 for you and yours!

~Finmap

First I read from lancee, then again onegentleguy.

I was away for some years cos I didn't have money to trade the market.

It's nice to read from you.


There was also RabbiDOracle last time I was active here, a billionaire at the time with plans to take over some listed companies.

Good memories.

zendi:
Happy New Year BNSITL.

Brothers 'n Sisters In The Lord.

CGT or not, successes be our experiences, in both trading and investing, with good health, this year and onwards, in Jesus' Name.

Love your greetings.
Investors and traders are same colleagues with different approach.

No one is better than the other.

emmanuelewumi:
Well that was an article on Facebook that I shared

Ohh... Apologies sir.

Streetinvestor2:
Why u dey waste u strength. Your initial interpretation is very correct. Any one can be forming guru on the matter to make tax consultant feel special. The only thing thr is space it for some time for next stock investment as new reset.@osita once collaborate this position. I no send anyone opinion on the stupid tax law.I have my faith it won't go beyond 2027 for them to get out.
I don even warn one bank person as he called to talk about TIN number. Is thr luck they now say they are using NiN.They won't see my shishi.If you be big customer to me you pay for your goods to my supplier account directly. It is legal in business transactions You go wait for turn over explanation tiya no evidence

I like having plans for different scenarios na.

My interpretation is based on what I read from the law and what Oyedele has said.

But since people like you don't trust Oyedele. It's good that even if they interpret differently like Namaster says, all I have to do is repurchase and sell in a different year.

Streetinvestor2:
It won't still be like 2019 because one person does not have organic 12 million vote following him up and down like Buhari..lol

Maybe if they can push an arrangement for Atiku to only do one term, then Obi will be on the ticket by 2031.

Anyways, you certainly know more about politics than me.

emmanuelewumi:
I am sorry, I think you quoted the wrong person

No sir.

I'm the last paragraph of the AI slop you screenshotted, the AI was bashing trading stocks, what did you tell it for it to be bringing up trading stocks? 😁😁

Namaster:
If you invest #50M and made #200M, the sales proceeds would be #250M.

If you reinvest the rest (#200M, not #150) and withdraw just #50M.

The calculation would be like this:

#250M proceeds = #50M cost + #200M gain
That's 20% cost + 80% gain.

Your #50M withdrawal would be treated same way

#50M = 20% cost (#10M) + 80% Gain (#40M)

Your tax liability would be on #40M.


For the second part, obviously the base is not going to be #50 but the #250 you actually paid for them.

EVERYBODY agrees on that.

Also, get yourself a Tax Accountant and BOMBARD him with as much scenario as your heart desires.

So in effect I have a plan on hand if your interpretation is what they go with.

Why do you think I need a tax accountant?

How am I sure he understands numbers like me? Why waste money.

I had a plan based on my previous interpretation, now that you presented another possible interpretation, I also have a plan to simply delay to another year and get a higher base cost.


Now it seems you're also agreeing with @mallamOmonile's position about recognizing the principal and profit components of every withdrawal. You initially thought everything would be treated as profit.

You see our debates today have been helpful to everyone

Streetinvestor2:
LWKD,you wan hear my mouth. Try again next yr.I am presently not available...bad network

No nah. I only say things I mean.

It's just a simple maths I saw.

If Atiku could possibly agree to vice Obi, then he would win the north for him.

Such a development would rekindle the obedient movement so strongly, even Tinubu might become scared.

But if it's reversed (Obi runs as vice) then it'll just be like 2019 imo


I believe you heard the news that they're now both in ADC. Obi left LP today.

I'm not one to play unnecessary games. Nothing like wanting to hear your mouth.

@streetinvestor2 Obi for president, Atiku for Vice, that would have made 2027 plausible, but will he(Atiku) agree

Counting the FCT as a state, they both won 24 compared to Tinubu's 13.

So that we'll know how to plan our withdrawals.


@Namaster @MallamOmonile

Nwanne, Namaster, Biko, analyze this other scenario for me abeg.


I want to be sure, I have plans in plans regardless of what interpretation prevails:


Imagine I bought 1m shares with N50m in 2026 at N50 per share , and made N200m in profits in 2026 when the price is N250 per share, but only withdraw N50m (enough to cover all my personal and family expenses) I will pay tax on the entire N50m (based on your interpretation)

Now i reinvest the remaining N150m at N250 per share in 2026

By 2027 when I sell that N150m after 12 months must have elapsed if I sell at N300
Will you calculate my profit on the N150m using N50 as base cost or N250??

emmanuelewumi:
Background information about the new owners of Geregu

Why is your AI beefing stock traders again o 😁😁😁😁

We that trading is the only way we know to make money nko?

What should we do?

I'm looking for a new house in Alimosho.

So far the places I've seen range from 2.5m to 4.7m, while I'm still contemplating, the last 4 trading sessions, I've made net gains of N2m. despite 2 of those 4 sessions being half sessions.

You think, someone like me cares about the next rubbish your AI hallucinates?? 😁😁

mallamOmonile1:
Dear Awesomej

In response to the bolded:

I like to read the law and not interviews. The law said
S34(1) a (i)
"Disposal proceeds, in aggregate, is less than 150,000,000 and the chargeable gain does not exceed 10,000,000 in any 12 consecative months"

My take,
There is a double aged sword in that section, it is "12 consecative months". Why do you think they refuse to say 'year of assessment'. I laugh in french. Although, the 2 are both 12 months, but in application, they might not be the same. I THINK THAT 12 MONTHS IS THERE TO TAKE CARE OF TRADERS LIKE LOCOMOTIVE🤣🤣🤣🤣

SO
Remember tax is on preceeding year bases, i advice you reinvest your proceed if your GOAL is to enjoy your exemption. Just thinking it might be difficult to convince the tax man that " i will reinvest in the next 12 months"

By the way, there is no such word as 'next' in the section we read.

IF however your goal is to minimise your tax on gains and also make withdrawal, then


May be you sale, reinvest in a high cap stock that doesnt fluctuate....1st leg
Then sale the high cap stock same price or even minimal loss bcs of transaction cost...2nd leg.
PROVIDED THAT THERE IS AT LEAST 13 MONTHS GAP BETWEWN THE 1ST AND 2ND LEG SO AS TO AVOID AGGREGATION

See free consultancy😂😂😂😂😂🤸🤸🤸🤸

Wetin i sabi sef, i no know book sef

You're right.

What I'm certain of is that we will exploit that reinvest clause to its last limit.


There are folks who are already covered by the N150m threshold, but the rest of us, na that reinvest we will exploit as much as legally possible.


Even complicated scenarios beyond what Mr Taiwo envisaged will still arise.

Your point about every withdrawal having principal and profit components is also super valid.


Let's just see what their initial guidelines will look like.

Two gurus in the house, but one is claiming not to know book.

Thanks for your insights @Namaster and @mallamOmonile1.

Thanks @Namaster for balancing my overly optimistic views 😁

Even me, I'm beginning to get confused.

@mallamOmonile1 and @Namaster, you guys should please carry on this debate.


Also talk about the case when at the point of filing returns for the N30m, I might still claim to plan on reinvesting before the 12 months elapses.


But the surest interpretation will be what the guidelines they release next year.

From what Taiwo said, once you repurchase, it's a new transaction altogether.

But a lot of people especially @streetinvestor2 don't trust Taiwo because of his suit.

Namaster:
Let's break it down.

First deal is a #50M gain from a sales proceeds of #100M.

Second deal is a FULL reinvestment of #100M.

Third deal is a sale proceeds of #30M with ZERO gain or loss.

Your AGGREGATE would look like:

#50M gain +/-#0 =#50M.

So Tax Authorities would assume that #50M is your Chargeable gain from your activities for that year of assessment.

And ordinarily, the full #50M would be subjected to tax.

But since you only withdrew #30M, that's the portion that would be subjected to tax.

It's just like the law says.

You're not clarifying.

Your analysis is saying N50m is taxable, and you're still saying N30m is what's taxable.

You haven't gotten this flow perfectly yet.

mallamOmonile1:
Me i know sabi book.

However, the law said

34 (1) (a) (i) "disposal proceeds, in aggregate,
is less than N150,000,000.............."


34 (1) (a) (iii) "........provide that tax shall accrue, proportionately, on the portion of the proceed which are not reinvested........."


This is my take:

1. In determining the taxable gain, proceeds shall be aggregated for the year of assessment.
Therefore, going by your example, total proceed is N100m.

2. Going by the 2nd section i quoted above, your taxable gain will the be proportionately determined base on the proportion of your proceed (10/100=10%) which you did not reinvest.
Therefore, 10% of the realised gain of N50m will mea your taxable gain is N5m.
The tax rate to be applied on the N5m will now depend on your tax band.

PLEASE NOTE.
Your 2nd purchase of shares (90m) has not crystalised for taxation as it is just an asset your acquired, until such a time you make disposal.
So, you can not bring it in as a cost of sale, as the revenue has not crystalised. As in, it is still an asset yiu are holding, there is no taxation on asset, rather income, which in this case of 90m has not crystalised.


JUST MY PERSPECTIVE PLS.

I agree with this 💯💯💯

Namaster:
NO.

The purpose of the REINVESTMENT Clause is to RETAIN money in the NGX.

The way you explained it made it sound like Oyedele collected billions from Tinubu just to design a BIG, FAT and extremely obvious LOOPHOLE.

The tax law FIRST looks at individual transactions.
Then AGGREGATE portfolio.
Then what you did with ANY gains from that portfolio.

What that means in numbers

Scenario 1.

1. A Frist transaction of #100M Sales Proceeds from a #50M cost price. That's a potentially chargeable gain of #50M.

2. FULL REINVESTMENT.

3. That's EVERYTHING you did in the NGX that year of assessment.

Your tax liability related to CGT for that year would be ZERO.

Scenario 2.

1. A Frist transaction of #100M Sales Proceeds from a #50M cost price. That's a potentially chargeable gain of #50M.

2. FULL reinvestment.

3. Sold new acquisition of #100M at #100M.

4. Withdraw.

5. PAY TAX!

That's because the New Laws are applicable on NET GAINS.
And for Net Gains to be a factor, you must be looking at a BIGGER picture, i.e, the portfolio.

So, first transaction has a gain of #50M.
And you broke even in the second deal so made #0 gain or loss.

Net Gain for your portfolio would be #50M-#0 =#50M.

That #50M would be subjected to tax.

There's a post with another scenario, I would love to see your analysis on that.

The one where I withdraw just N30m and your approach says I should pay taxes on N50m

pluto09:
Your tax is an annual event.
You will declare what you invest and what is your profit at the end of the year.
Then tax will be calculated based on your annual profit.

You seem not to understand the peculiarity of profits from disposal of shares.

What you're stating is straightforward for regular profits. Those arising from disposal of shares are handled differently.

Namaster:
The second part of the Section 34 I quoted addressed this:
(iii) proceeds from such disposal, notwithstanding the threshold in (i), are reinvested within the same year of assessment in the acquisition of shares in the same or other Nigerian companies, provided that tax shall accrue proportionately on the portion of the proceeds which are not reinvested in the manner stipulated in this subsection
[i][/i]

Another thing to note is that the issue of Capital Gain ONLY arises when there is actually a SALE.

If you used #50M to make #50M then reinvested #90M and took out #10M.

Only 1 transaction matters for CGT in this scenario. And that's the FIRST one.

Your position is this:

In my two tranch example:

Total purchase for both tranches is N150
Total sale is N200m

Therefore N50m is tax liable.

I think that's correct.

Now what if tranche 2 is me buying new shares with the N100m proceeds from tranche 1, then I sell and withdraw N30m.

Then total purchase becomes N80m (first N50m plus the cost of the N30m portion I'm selling), while total sale is N130 (the first 100m plus the second N30m)

Taxable profit would then be N130m - N80m = N50m.

Are you saying they will charge me for a N50m tax when I'm only withdrawing N30m.


Don't you think this already violates the reinvestment relief the law provides?


Another nuance is by the time I file tax returns in March 2027 for instance if I claim I sold the shares in November 2026 and would still reinvestment before November 2027, do you think I'd still be tax liable?


Again, we're simply debating ideas for better understanding, no grouse at all.

Namaster:
AwesomeJ, understand this:

I am NOT trying to debate anything with you.

I am attempting to RECTIFY the wrong information you passed that could MISGUIDE people and potentially land them in legal trouble.

People could follow it and get in SERIOUS trouble.
Especially the rich people who do BIG transactions in the the NGX.

Best thing for people like that is to get a Tax Lawyer or a Tax Accountant.

Now on your first post:
What the tax man has said is that once you reinvest, your cost basis becomes the new N100m, you thinking it'll be aggregate of all you purchased is an assumption.

You are interpreting this to mean that a REINVESTMENT means a blank state.
That reinvestment wipes out the previous gain.

WRONG!

First thing you need to understand is that CHARGEABLE GAIN is computed on INDIVIDUAL transactions.
But the applicable taxes would be based on the AGGREGATE Portfolio.

I understand you sir.

I'm not saying reinvestment wipes out the gain.

I'm saying reinvestment makes the gain non liable to tax.

Isn't that what the law says?

chimex38:
Nigerian Creditors will literally be going house-to-house to take and sell properties.

Shey you remember that scenario happened 5 years ago during COVID lockdown.
Global oil consumption crashed by over 70%

You had to pay people to buy oil from you 😁😁😀


That's the only thing that will make Agba get some of the prices he's waiting for.

jonnysessy:
When actually do you make your own money in this market ?

Once in a blue moon when crude crashes below $0.

Agbalowomeri:
Guys congratulations on a beautiful 2025

Wishing you a bearish 2026

You should wish the bears a bearish market and we bulls a bullish market na.

Which one is this biased wish.

If you want something that covers everyone at a go, then just wish us all a profitable year.

thebargainhunte:
The tax man will collect the tax due for the 10m you are taking away from the system. That's my own understanding provided you didn't try to take anything away from the system that year you reinvested.

That's my understanding too.

But the aggregate buy that Namaster is saying wouldn't make sense in that case since it would be 140m buy vs 100m sale, going by his interpretation, are we to now reckon a N40m loss?

When he comes, he will teach us, with solid anchors for his interpretations.

Also @Namaster, Imagine if I bought shares with N50m, sell for N100m, reinvest N90m and withdraw N10m.

Your interpretation expects me to pay the entire N10m as tax?

Abi how would you calculate?

If you used aggregate purchase, you would get N140m and sales of N100m, would you interpret that as a N40m loss when in reality there's a N50m profit?


I'm not trying to have a heated debate with you .

I would just like you to analyze different scenarios with your interpretation, so that we can all learn.

Also did you notice that the term aggregate despite being only used for sale, isn't even relevant to reinvestment. It's only relevant to determine whether or not you've reached N150m in sales for the year.


Please teach us. Since the very next market session will already be under these new laws.

Agbalowomeri:
I no fit touch fbn with a long pole Lol

When you've not even touched GTB.

Someone of us know when 40.65 is too cheap to ignore, especially when Otedola still has a trillion naira looking for a new home.

Namaster:
This is EXTREMELY WRONG!
And it could get you in trouble with Tax Authorities.

If Oyedele devised a system that could be gamed in such a SIMPLISTIC way, he would NOT be the second-most HATED man in Nigeria.

CORRECTION:

First thing you must understand is that the gain chargeable to tax would be the based on the AGGREGATE transactions on your portfolio.
NOT individual transactions.

So based on your example,
First transaction has Sales Proceeds of #100M and Cost Price of #50M.

Second transaction has Sales Proceeds of #100M and Cost Price of #100M.

Calculation would look something like this:

Aggregate Sales Proceeds= #200M (#100M + #100M)
Aggregate Costs= #150M (#50M + #100M)

Chargeable Gain is STILL #50M.

You'd be somersaulting for NOTHING.

The ONLY time you'd NOT have to worry about CGT is when you are continuously REINVESTING with no intention to take out any money from the gains you made on NGX.

Which seems to be your own PLAN.

But for people who intend to withdraw anything from the gain, that strategy is a WASTE of time.

Another thing to NOTE is the timeline when the REINVESTMENT clause kicks in.

[b[i] Section 34(iii) proceeds from such disposal, notwithstanding the threshold in (i), are reinvested within the same year of assessment in the acquisition of shares in the same or other Nigerian companies.
[/i]][/b]

So when you advised people to consider spacing their transactions over weeks, let them know to keep the year of assessment in mind.

What's your basis for this correction?

As far as I'm concerned you're just assuming.

What the tax man has said is that once you reinvest, your cost basis becomes the new N100m, you thinking it'll be aggregate of all you purchased is an assumption.

Cos no where in the tax laws is aggregate cost meantioned.

You're fabricating it out of imagination.

Please bring facts to disprove this, so we can all learn.

As it is, you're just countering with your own interpretation, not really what the law says.

Aggregate cost is something that doesn't exist anywhere in the law.