₦airaland Forum

Okay, based on this submission, the problem then is more with the price disparity between the London market and the Ngx than the 100k rule.
It looks more like the Nigerian investors are holding on tight to their merchandise and not willing to sell, which then means the primary poor liquidity challenge.

awesomeJ:
Yes there's more to it, and I've mentioned it here before

The same AIRTEL shares currently sells for over N7000 in London, and you expect anyone to be willing to sell at 2k in Lagos?

So every Airtel share you sell in Lagos, you're selling at 5k below market value.

If all that's needed for a price movement is 1k units, people can easily sacrifice N5m to move the price, but at N100k units, why would anyone willingly burn N500m

Maybe I don't understand the root cause but if I think I understood you, you were saying the 100k rule is preventing the stock price to move up or down. At its present price, the amount required to achieve the 100k volume is large.
Seplat also suffers from something similar even though that one moves in baby steps.
Or is there more to it?

awesomeJ:
I don't think you understand the root cause.

Airtel isn't the stock with the highest price on the exchange.

It's a problem that affected DANGCEM in 2024 as well.

Isn't it the responsibility of Airtel to consider a stock split rather than NGX bending the rules for them?

awesomeJ:
I've sent an email to the NGX contact centre. I copied my 2 brokers, the CSCS, and the SEC.
I also raised the issue of AIRTEL suggesting to them that if a stock has not had a price movement for up to 3 months, they need to suspend the 100k units requirement on it so that we can avoid unnecessary illiquidity, hopefully they read the email and act.

I think you made a small error here.
The taxable should be on profit and not the full amount, that percentage may become 60 and not 30.

mallamOmonile1:
I ASSUME 100M PROCEED IS TAXABLE JUST FOR ACADEMIC PURPOSES.

MY ANSWER
Proportion of proceeds withdrawn is 30/100=30%.
Net gain is 50m
Therefore the taxable gain is 30% of 50m = 15m
The relevant tax rate will be applied on 15m.
Meaning, 35m of that gain of 50m is associated to the 70m reinvested and therefore tax exempt.

I so submit sir.

I think I understand the position of mallamOmonile1, so let me try to use a different scenario to ask his question.
Assuming I got a loan of 60M (cost) to buy shares) and sold for 100M. I then withdraw 50M to try and pay back some of the loan while the balance of 50M is reinvested.

Is the tax man coming for his share of that 50M?

My response subject to correction of cause to this may be that you will have to show the tax man that you actually paid it to the loan source for you to be free of the tax.

But if it is not a loan but a direct application of his scenario, and I was just withdrawing the 50M I took from one of my accounts to quickly do jijo and was now returning it ...

Na wa ...

mallamOmonile1:
The issue is the N30m withdrawn has actually 2 components, THE COST AND THE PROFIT/GAIN. Therefore subjecting N30m to tax means you are taxing part of the seed.

Let use this other example to drive this home:
Cost 60m
Proceeds 100m
Amount withdrawn 50m

What then is the taxable gain, i hope you will not say N50m

Namaster:
I see where you are coming from.
But it's NOT correct.

This is where you are quoting from:

...provided that tax shall accrue proportionately on the portion of the proceeds which are not reinvested in the manner stipulated in this subsection

But you are applying a percentage to the Gain and NOT the proceeds as specified.
And that would result in lower tax compared to applying it to the proceeds as SPECIFIED.

Secondly, your scenario is ENTIRELY different from the one awesomeJ brought forward.

In his scenario, there are 3 different transactions.
First, there was a sales proceeds of #100M and a gain of #50M which represents transaction 1.

Then a full reinvestment (purchase of shares) of #100M which represents transaction 3.

Then a sale proceeds of #30M with a Cost of #30 which represents transaction 3.

The transactions in his scenario are CLEAR and easy to track.
There is ZERO need to complicate it with computations of percentages and proportions.



But YOURS require that.

Here's your scenario:

1. Sales proceeds of #100M and a gain of #50M.
2. He withdraws #30M and reinvests #70M.
3. Then you can calculate proportions.

In this case you have a formula of where Sales Proceeds = 50% Cost + 50% Gain.

So if he withdraws #30M, the taxable proportion would be 50% or #15M.


This should make everything CLEARER now.

Ah you are right, you did say in your initial quote that the Ngx is the only platform you can make billions and effectively pay 5%.

Nice one

awesomeJ:
You're exactly right with the tax man and beans scenario.

Which is why I said in the original post you quoted that the NGX is the only place you can avoid taxes like that. Cos it's only the NGX that has the reinvestment clause

The government knows that every other business restocks with proceeds from sales of their inventory but they didn't give them any reinvestment clause for tax exemption.

That's why the beans trader will pay his full tax amount, but we NGX traders will not be liable to anything.

One of the reasons why China does not allow every kind of movies in their space. Movies that gives people unnecessary negative ideas are better left sensored.

OracleJay411:
Movies help these people with ideas and inspirations. Movies like Ocean 11, The Italian Job, Army of Thieves, Tower Heist etc

Hmmm, I non sure say this your trick go work oooo....

Let us use another brick and mortal business scenario to analyze this, assuming I sell rice and beans in my store and bought Rice worth with an initial capital of 50m and sold for 100m in June, that is a profit of 50. Now I decided to now buy beans with the 100M and sold the beans at 95M.

At the end of December, the profit for the year is 45M from an initial capital of 50M. Nothing concern tax man with whether na beans or rice produce the profit, because your balance sheet will show a profit of 45M which I believe is what will be taxed.

But, I am no expert, just my own naive knowledge

awesomeJ:
Yes sir.

If I buy a stock with N50m in January, and by June, it's done 100% and is then valued at N100m

Even if I sell and have no plans to remain on the market, I will sell for N100m, then repurchase for N100m and resell for N100m.


Two transaction tranches:.
First leg: I entered at N50m and exited at N100m , N50m gains .

It won't be taxable cos I'm deploying the process into the second tranch.


Second tranch:

I entered and N100m and exited at N100m

No profits hence no tax.

Okay, just to be clear, by account, I meant it staying within the trading account like Morgan without withdrawing to my bank account.
Also, about the 5% effective payment you speak about, which is significantly different from the 30% we all seem to know, can you explain what you can achieve that.

awesomeJ:
If you sell and it stays within your account (or not):

1. you need to declare if the sale generated any profit even if it's 1k.
2. The profit will then only be liable to tax if all your sales in a given year exceeded N150m or your total profits exceeded N10m and you do not plan to reinvest the proceeds over the next 12 months.

Do you care to explain?

My own thinking has been that if I sell and it stays within my trading account without it touching my account, then I probably do not need to even declare not to talk of paying tax on it. Does this align with what you understand from the tax law or am I way off the mark?

I think they are 2 questions there, if you are pressed for time and want to answer only one of them, please prioritize the first one, I can always source the answer to the second one later.

awesomeJ:
With these laws, NGX is the only place you can make billions and pay less than 5% effective tax rate!

That's much better than the previous 10% and better than the 20% average rate that most people earning over 50m p.a would pay.


I also stand to gain another N100k weekly if this stamp duty exemption is confirmed and implemented.

Whereas everyone else still has to pay stamp duty on normal bank transfers.

Now I'm begginning to see why stakeholders probably didn't object to the laws. Cos the only thing better is probably if they made NGX tax free, which wouldn't be fair, given that everyone else has to pay taxes, even those in fixed income pay 10%

Baba, the two incidence are still not the same. The only thing similar to them is that there was a 'sell'.

One sold a stock that was has not done well for many years, another sold a stock that has consistently paid dividends and has been having price appreciation over the years.

Summary: Firstbank share and Vitafoam shares are not to be compared.

Mankind2024:
Exiting Vitafoam when you did should have been based on strong, rational grounds—the company's fundamentals haven't changed at all.
It remains a true compounding stock: consistent annual dividends, steadily growing revenue year after year, a strong economic moat, moderate OS(1.25B) and relatively good liquidity.
I truly empathize with you for exiting too early.
Your story is remarkably similar to Madam Flo's, who emotionally sold off her FIRSTHOLDCO shares.
More wealth has been surrendered by exiting good companies prematurely than by market crashes.
You didn't just miss the ₦3.00 dividend—you also missed the 1-for-5 bonus issue and the powerful future compounding that could have followed.

If you ask me sha, this madam flo story is not the best story to explore the positivity of patience in the stock market, instead I think she made the right decision shielding the first bank dead weight, the only thing I can even fault her for is that she waited too long.

This advise will fall not only on deaf ears, but there will be some who will come and throw shades of insults at him.
Nigerians like soft life without handwork., we know how to manufacture excuses and not solutions to anything Always looking for a savior to do all the handwork and then do handout.

I have tremendous respect for those who attempt to run industries and extra respect for those who successfully run them.

If you notice, most people default to running bars as a way of making money and even when politicians steal, they still have no ideas of what business to run so they default to building malls or hotels, businesses that will not be able to sustain their present lifestyle

Few points I was able to gather from the session.


Before now we had a CDT act so unlike before where we had different tax acts and documents, we now have one signle law on anything tax.
Filings are to be done 2 times a year. June and December. Transactions that occur between Jan and June are to be filed in June, ditto for June to December in December.
CGT applies to gains in securities and capital market.
Loses can set off from other chargeable gains which means you can use losses from one asset sale to offset gains from another asset within the same assessment year. The old CGT law did not allow this until the act of 2020.
Non resident is liable to tax on gains made from Nigeria
The provision now also ensures that FDI also have to pay CGT even if they use SPV to run their business in Nigeria
One way to avoid paying CGT is to use the gains to buy another security within same calendar year irrespective of whether you made a gain of 10M or not.
Bonds and FG securities are still likely to be excempted
Timing your disposal can also help in reducing your CGT
You can use your loss making assets to offset your gains when you sell both within same period
Risked aversed people can focus more on dividend gaining asset since that dividends only attract 10% WHT
When filling your returns for CGT, all your refunds should provable. Contract documents come in place here
Same for when you reinvest.
Use all of those details to self declare your gains. Do not wait for the tax man to come and help you calculate.
Know what is taxable and not taxable, do not misclassify.
Crypto will also be liable to CGT
Identify Tax Exempt Table Income Portfolio abd assign more resources to them
Looks like even mutual funds are CGT taxaable (This one I was not clear on)

ojesymsym:
There is an ongoing session by Afrinvest on zoom with relations to the CGT issues. If the link gets removed or I get blocked, you can do a search.

Started10am. 24th November 2025

https://pjpnw-zgph.maillist-manage.net/click/111cda6ebc32a59a3/111cda6ebc33178e6

There is an ongoing session by Afrinvest on zoom with relations to the CGT issues. If the link gets removed or I get blocked, you can do a search.

Started10am. 24th November 2025

https://pjpnw-zgph.maillist-manage.net/click/111cda6ebc32a59a3/111cda6ebc33178e6

Na wa, no economic news wen u non de follow. I know you are more of a programmer, how did you adapt financial knowledge into it.

I know that a combination of programming, data analysis and financial knowledge can basically mint money. If u non mind I go like know your career path or with the benefit of hind sight suggest one for someone wanting to combine those 3 fields.

awesomeJ:
Reuters reports a 12.5 bps reduction in both yields vs Business Day.
8.625 and 9.125

One thing is clear, by 2027 or a few years after, virtually everyone will have at least a rudimentary knowledge of bookkeeping. We will all now learn how to record our income and expenses. We may even get to a stage where even plumbers, mechanics and co will have to be issuing invoices or receipt for services rendered, all in an attempt to claim rebates wherever possible.

Even urgent 2k will now need to be documented very soon.

If this is the official qty, then some other values there has to be reduced to ensure the total remains 100%, which do you think then is overstated?

KarlTom:
This 3% is the official qty...

Wait ooo, so all those noise about Malta, na only 3% we be de ship from there?

ositadima1:
I found this data from 2022, the U.S. accounts for less than 4%. Are you suggesting they’re waging a war on behalf of Belgium and the Netherlands, which together cover almost 50% of Nigeria’s refined product imports? Please, argue with facts, not unfounded emotions.

Have you ever seen the U.S. invade a country simply because it placed a tariff on imports? Or do you think Nigeria will be the first? You people need to drop this “they’re not happy with my progress” mindset. No one can hold you down except yourself.

Unless you want to deny that there’s been a rise in killings across Nigeria, the message was clearly meant to wake up the administration.

This has been my observation too.

emmanuelewumi:
The extraordinary profit of last year was a one off thing.

Yet federal government of Nigeria got more than 50% of the huge profit based on forex gain

CBN did not talk about foreberance loans when the banks made the huge profit in 2024.


Now in 2025 when banks can't repeat last years performance, they now remember the foreberance loans given to the banks

If this was done last year banks would have used part of their bumper profit to pay down the loan.


If you want loan term wealth and value creation on NGX, please look beyond banking stocks

Banking stocks are only good for predictable dividend income [b][/b]

List wen non contain "Anywhere belle face" cannot be said to be complete

emmanuelewumi:
What of investor are you.

I am a dividend investor, growth investor, value investor and quality investor

Oh really? I could have sworn I have sent mine on more than one occasion. particularly some of these registrars. Maybe it is my imagination then.

I will go and correct the quoted post so as not to mislead,

Thanks

KarlTom:
It can only be used within 3months and it's only acceptable by the individual/entity it is addressed to...

What bank person told you that? Even security guys at the bank should know it. It is a letter confirming that they know you, when you opened the account and the signature you use. <deleted>.

If you use GTB online banking, I have seen one of their menu that has signature confirmation, even though I have not personally have course to use it, my instinct tells me that it is something you can do from within the bank app without the need to physically go to a bank.

codeME:
they said i should get confirmation signature from my bank, I have been to the bank they told me there is nothing like that.

I hope you guys are not mistaking interim dividends with main dividends oh...

olaremint:
Gt has been the biggest disappointment. with all the noise they made that they had no forbearance loan and they will pay dividend, this is the nonsense they want to pay

Oh okay, I thought you were talking about MPR

Agbalowomeri:
In higher rate environment, the banks just pack money put inside treasury bill and siddon look. With rate cuts they will gradually need to hustle more to expand their loan book.

But is this not like chicken and egg situation? Higher rates should theoretically result in lower volume thereby reducing the economic of scale whereas lower rates will result lower per income but higher volume?

Agbalowomeri:
Rate cuts means lower earnings for banks

Morgan has one feature that they do not have, Morgan gives you an immediate estimate of the total cost when you input quantity and price, Stanbic does not however Stanbic allows you to select the duration of days you want your limit price to last, to the best of my knowledge, Morgan will cancel all pending order at the end of the trading day, which means you have to refill an order the next day if it was not fulfilled that day.

In all, they all have their uses. Stanbic is where I do my compounding, because the investment there are mostly from dividends or gains so I tend to indulge more with the dividends that come that secondary income unlike the primary dividend that the first right is for it to be invested.

awesomeJ:
They were consistently topping the volume and value charts at the time na.

Thank God for good competition.

Plus the market has moved to more domestic players compared to the foreigners that were the large chunk of their clientele (I suppose)

I believe that 5m policy has been relaxed.

IYGEAL:
That was exactly why I didn't use them at the time. I had them locked in as a reliable broker, as I was looking for a stable company that won't easily close shop and come up with stories. One of my mentors then introduced Morgan Capital Group, who were charging the least fees with a very good UI/UX.

All parties, for and against don try, make we return to strictly NSE related matters.

Bottomline, only Dangotte na NUPENG 2.0,, Ver 2.1 can fight all they want but it is Dangotte not some random money miss road.

Exactly. As the number of deaths tend to infinity, the OS begins to tend to zero.

But really, how do they manage this, particularly in the developed world that have had a stock exchange across different centuries?

If my memory is correct, I believe I have also read about the number of bitcoins available to sell continuing to reduce as years go by and accounts get lost or owners die.

Agbalowomeri:
So bring on the calculus dy/dX as t tends to infinity

I was just thinking of shares left by people when they die and it is not taken over by their families. As the number of deaths begins to increase and shares not taken over, so does the quantity of outstanding shares available to sell begin to shrink.

So mathematically, will they not be a time in future assuming all previous shareholders died and their families never bothered to have their shares transferred to them?