₦airaland Forum

KarlTom:
There's a cap of total sales (₦150m).

You wey dey do ₦billion per month on a norms, how you wan take run am

The N150m is for complete tax exemption.

Like if all your sales for a year are less than 150m you'll be exempted whether you reinvest or not.

The reinvestment is a different clause which exempt the tax burden as long as you're not pulling out the funds, but instead redeploying to other stock. That still applies even if it N500bn per year. (I SUPPOSE)

Okay. What to expect now? I have been observing the volumes going down for days now.

Sunrisepebble:
Finalized

mikeapollo:
One day, you will need to withdraw your cash e.g. for a major project or to pay for your child's school fees abroad.
Then the govt comes to collect a whooping tax on it?

I'll withdraw it as dividends and pay just 10% 😁😁

Dividends are enough to cover my bills.

KarlTom:
I stand to be corrected but Let me quote your original post:

B. On Capital Gains from Shares
• Threshold Exemption: No tax if BOTH apply in a 12-month period:
o Total sale proceeds < ₦150m, AND
o Chargeable gains < ₦10m.

the key word here is BOTH so exemption only happens WHEN both conditions are met

Yes sir. But that's condition 1 of exemption (it deals with the values of proceeds and gains)


The other condition of exemption is about what you do with the proceeds. It's separate from the first.

awesomeJ:
I agree 100%
It isn't double taxation in the Financial sense, where the company and the owners are separate entities. But it is in the real sense, cos the company's owners actually make the company, abi na company dey wear suit sit down for.board room??.😁

If you're an HNI, does a company shield you from WHT though? Isn't it payable by all entities?

It is even ''triple taxation'':
You pay PAYE on income; plus
1. CIT on company tax,
2. WHT on dividend from PAT;
3. and CGT on traded shares of the same company

Okay. Let me correct myself" most countries worldwide.

Nigeria is a West African State
PS: don't misconstrue my point here. The 'double taxation' debate that has been raging for decades but government are not likely to stop it because it means less funds for them

mikeapollo:
How many countries in the ''worldwide''? Because I am not sure this is done in West African states

awesomeJ:
I'll withdraw it as dividends and pay just 10% 😁😁

Dividends are enough to cover my bills.

Are you joking?
A person has a stocks worth 50m; he receives dividends of 2m per year. He needs 20m to buy a house or settle an emergency obligation.
This thing can affect majority of people in the NGX

There is potential confusion looming.

KarlTom:
Okay. Let me correct myself" most countries worldwide.

Nigeria is a West African State
PS: don't misconstrue my point here. The 'double taxation' debate that has been raging for decades but government are not likely to stop it because it means less funds for them

But it is still not done (yet) in Nigeria, West Africa. (you catch me, I dodge you)

WAPCO

https://www.holcim.com/media/media-releases/nigeria-divestment?utm_source=chatgpt.com

https://www.tipranks.com/news/company-announcements/holcim-completes-divestment-of-nigerian-business?utm_source=chatgpt.com#google_vignette

https://www.globalcement.com/news/item/19187-holcim-completes-us-1bn-divestment-of-lafarge-africa-stake-to-huaxin-cement?utm_source=chatgpt.com

KarlTom:
Okay. Let me correct myself" most countries worldwide.

Nigeria is a West African State
PS: don't misconstrue my point here. The 'double taxation' debate that has been raging for decades but government are not likely to stop it because it means less funds for them

The yeye senate refused to accept the reduction in cooperate tax proposed in the initial bill.That would have been better for investor. They whr looking at thr own looting from the fund to be generated.
I pray the government comes hard on thr PI T for them to feel it. Not to make it selective for opposition like they are now after Dino.Many of them are presently in Dino class for past PIT paid

mikeapollo:
Are you joking?
A person has a stocks worth 50m; he receives dividends of 2m per year. He needs 20m to buy a house or settle an emergency obligation.
This thing can affect majority of people in the NGX

There is potential confusion looming.

Few things:
- if you pick the right stocks, the dividends are more like N4m not N2m
- NGX is not my only income stream
- I already have a big house with rental income even

So Yes dividends would do, especially when the capital is more than N50m. Maybe N40m dividend on N500m capital helps you get the perspective 😁😁😁

Anyways, it's not a one-size-fits-all approach.

But it's one that'll certainly work for me.

GeeKudi:
WAPCO

https://www.holcim.com/media/media-releases/nigeria-divestment?utm_source=chatgpt.com

https://www.tipranks.com/news/company-announcements/holcim-completes-divestment-of-nigerian-business?utm_source=chatgpt.com#google_vignette

https://www.globalcement.com/news/item/19187-holcim-completes-us-1bn-divestment-of-lafarge-africa-stake-to-huaxin-cement?utm_source=chatgpt.com

What is likely to be the implications now that the transaction has finally gone through?

KarlTom:
Yes!

Every taxable entity (individuals or registered companies) is entitled to Tax Rebates.
At the bolded, I do not think it will be counted as taxable profit IF it is same entity (individual or company) carrying out the transactions.
That is the reason we all need to file tax returns when due...

But @Ositadima has a contrary view.
He says T. Bills and Bonds are not covered under the reliefs.

The govt needs to do serious mass education on this new tax law.

Who is dumping Access??

crownprince2017:
What is like to be the implications now that the transaction has finally gone through?

I guess tit will benefit existing shareholders of WAPCO.
The new owners may want to buy out existing shareholders (if they agree to a price), and/or they would improve the performance and fortunes of the company for higher profits/dividends.

I'm equally eager to know!

Some volumes have been exchanging hands in recent days without any serious price movement.

crownprince2017:
What is like to be the implications now that the transaction has finally gone through?

awesomeJ:
Few things:
- if you pick the right stocks, the dividends are more like N4m not N2m
- NGX is not my only income stream
- I already have a big house with rental income even

So Yes dividends would do, especially when the capital is more than N50m. Maybe N40m dividend on N500m capital helps you get the perspective 😁😁😁

Anyways, it's not a one-size-fits-all approach.

But it's one that'll certainly work for me.

Yeah, I understand it may be perfect for you.
I am only considering the implications for a wider number of investors who may rely on capital gains for projects and emergency obligations. Paying so much tax to govt would be a disincentive.

Also remember, you cannot ''withdraw'' dividend. You can only receive dividend when the directors decide to declare it. So it is not a certainty. So in a year (or years) that dividend is not declared, what do you do?

handsomebolanle:
Who is dumping Access??

Na yeye stock be that. I am heavy there sha. The thing is just giving me daily fall in portfolio value

mikeapollo:
Yeah, I understand it may be perfect for you.
I am only considering the implications for a wider number of investors who may rely on capital gains for projects and emergency obligations. Paying so much tax to govt would be a disincentive.

Also remember, you cannot ''withdraw'' dividend. You can only receive dividend when the directors decide to declare it. So it is not a certainty. So in a year (or years) that dividend is not declared, what do you do?

It's not that hard to tell which companies will or will not declare dividends is it?

If I'm hunting for dividends, would I leave GTCO to buy TRANSPOWER?? or a company with negative shareholders funds? Or one with forbearance issues, I mean these things wouldn't really catch you by surprise if you know what you're doing.

Getting 8% dividend yield on the NGX isn't too hard. Even DANGCEM would hit it.

handsomebolanle:
Who is dumping Access??

EDU & CO

Meanwhile we don sight JANET

Mpeace:
Na yeye stock be that. I am heavy there sha. The thing is just giving me daily fall in portfolio value

EDUECO come and defend access. Make e come down more, maybe I go jump in..

awesomeJ:
It's not that hard to tell which companies will or will not declare dividends is it?

If I'm hunting for dividends, would I leave GTCO to buy TRANSPOWER?? or a company with negative shareholders funds? Or one with forbearance issues, I mean these things wouldn't really catch you by surprise if you know what you're doing.

Getting 8% dividend yield on the NGX isn't too hard. Even DANGCEM would hit it.

There is one constant factor in investing in equity: uncertainty.
There is no certainty that a company will always pay dividend consistently, every year, without fail, forever
GTCo or any other bank/company for that matter can experience problems and stop paying dividends for some time.
Most of the companies that have folded up used to pay dividends annually at a time, until they started experiencing problems.
But I wish you always continue receiving your dividends as you desire.

crownprince2017:
What is likely to be the implications now that the transaction has finally gone through?

Waiting for their MTO offer.

Shoudn't be less than N154.30 (official closing price on 30th July) if the rules will apply.

IYGEAL:
Waiting for their MTO offer.

mikeapollo:
There is one constant factor in investing in equity: uncertainty.
There is no certainty that a company will always pay dividend consistently, every year, without fail, forever
GTCo or any other bank/company for that matter can experience problems and stop paying dividends for some time.
Most of the companies that have folded up used to pay dividends annually at a time, until they started experiencing problems.
But I wish you always continue receiving your dividends as you desire.

You do realize results come out on a quarterly basis right?

You make it sound like companies' numbers stay hidden until dividend period.

Anyways, let's not flog this too much.

What I know is, as far as the NGX is concerned, getting 8% dividend yield will only be tough for people who are still learning.

https://nairametrics.com/2025/08/29/gtco-injects-n365-85-billion-into-gtbank-to-meet-cbns-recapitalisation-mandate/

“Through this capital injection, the share capital of GTBank has been increased from N138.186 billion to N504.037 billion and ensures the bank’s compliance with the new minimum capital requirement for commercial banks with international authorisation stipulated by the Central Bank of Nigeria,” the statement read.

August's bull survives marginally at 0.2%

September should be better!

ARADEL. ±
CONOIL. ±
ETERNA. ±
OandO. -4.92%

ositadima1:
If you reinvest your loot within the same year, you pay nothing — tax is charged only on what you withdraw. I think this will actually work in favor of the NGX rather than against it, as people will think twice before pulling funds out. As for dividends, you already pay tax in the form of withholding tax (WHT).

@Ositadima and everybody in the house: please confirm this for me before I go crazy:
If one should sell shares and make a profit (chargeable gain) of N200m, you pay tax of N47.9m to govt. going by the new tax law?

mikeapollo:
@Ositadima and everybody in the house: please confirm this for me before I go crazy:
If one should sell shares and make a profit (chargeable gain) of N200m, you pay tax of N47.9m to govt. going by the new tax law?

lol. E shock you?
4×4

They want to kill this business