Nigeria’s Senate has called on Finance Minister and Coordinating Minister of the Economy, Wale Edun, to urgently revisit the controversial 30 percent Capital Gains Tax (CGT) on large share sales after what began as a sharp selloff last week deepened into a broader market slump.

The uproar follows a massive N2 trillion loss first recorded in a single week—an episode analysts now say spiraled into a deeper slide that has wiped out over N4.6 trillion in value on the Nigerian Exchange (NGX).

Analysts believe a significant part of the turmoil is tied to the newly passed Nigerian Tax Act 2025, which raises CGT on share disposals worth N150 million and above from 10 percent to 30 percent, with implementation slated for January 2026. The size of the tax jump and its timing are believed to have rattled both domestic and foreign investors, causing heavy selloffs across several blue-chip stocks.

Senator Osita Izunaso, Chairman of the Senate Committee on Capital Market and Institutions, addressed the issue head-on on Wednesday while presenting a paper titled “Redefining the Rules: The Investment and Securities Act 2025 and the Future of Nigeria’s Capital Market” at the Moneyline with Nancy Investment Forum 2025 in Abuja.

Izunaso said the sudden change in the tax regime had “unsettled investors,” leading to panic disposals that wiped out over N2 trillion within days.

Although multiple factors influence market movements, analysts say the timing of the selloffs closely mirrors the release of details about the new CGT regime, especially the proposed 30 percent rate on transactions above N150 million. They argue that foreign portfolio investors—already wary due to currency pressure, inflation, and patchy liquidity in the FX market—were spooked by the tax hike and accelerated their exit.

Izunaso acknowledged that the reform has introduced friction into a market that had begun recovering under President Bola Ahmed Tinubu, whose administration he credited for stabilizing macroeconomic conditions and improving policy coherence.

But he cautioned that the CGT change risks reversing those gains. He remarked that the increase in Capital Gains Tax on share sales above N150 million is worrisome and has created understandable concern among investors.

He underlined that taxation is essential for revenue generation but warned that poorly timed fiscal changes can erode confidence.

“While taxation is essential for revenue generation, it is equally critical that fiscal measures do not inadvertently undermine investors’ confidence or discourage long-term capital formation,” he said.

Senate to open talks with Finance Ministry

Izunaso said the Senate Committee on Capital Market would engage Finance Minister Wale Edun with an appeal to explore “a mechanism to address this concern” and safeguard both domestic and foreign investor confidence. He emphasized that certain provisions in the new tax law allow for ministerial discretion regarding commencement dates.

“We are aware that the new law is supposed to commence by January 2026. But we are suggesting that there are some provisions of that Act that require the commencement to begin only when the Honorable Minister of Finance advises the Executive. I think this is one of those things that should not commence on January 1, because it is already affecting the market,” he said.

Lawmakers believe delaying implementation could help stabilize sentiment, allow more consultation with market stakeholders, and prevent further capital flight.

Beyond domestic concerns, analysts say foreign investors reacted sharply to the news for several reasons:

• Large investors often structure exits months in advance, and a sudden jump from 10 percent to 30 percent on significant share disposals alters portfolio strategies overnight.

• Foreign funds, which had slowly begun trickling back into Nigeria after FX reforms, viewed the CGT increase as evidence of fiscal unpredictability.

• Heavy positions in tier-one banks and industrial stocks were unwound as global funds moved to reprice Nigeria-related risk.

The result, according to several market operators, was a swift contraction that accelerated losses from around N2 trillion to over N4.6 trillion within days, pulling the NGX All-Share Index off recent highs and eroding 2025 gains across multiple sectors.

Government officials offer clarifications

Amid the backlash, the Chairman of the Presidential Fiscal Policy and Tax Reforms Committee, Taiwo Oyedele, clarified that the new CGT will not apply retroactively. He explained that the reform includes:

• a cost basis reset, and
• a grandfathering clause

…ensuring gains accumulated before 2026 are preserved, and the 30 percent tax will apply only to new gains realized after the effective date.

Finance Minister Wale Edun has also stressed that the Federal Government will adopt a cautious and consultative approach in rolling out the new laws, acknowledging concerns about the capital market component of the reform.

He signaled willingness to refine guidelines and transition rules to avoid unintended shocks.

The coming weeks may determine whether the government leans toward a delay, amendment, or full rollout of the 30 percent CGT. For now, the market remains volatile, with analysts warning that without quick intervention, investor sentiment could deteriorate further.

The NGX, which had shown renewed activity and higher listing appetite in 2023 and 2024, is now grappling with the risk that the tax reform could slow capital formation, deter long-term equity investments, and push foreign funds to competing African markets with lower transaction taxes.

Izunaso’s push signals that the Senate recognizes the risk and is preparing to press the Executive for adjustments before more value evaporates.

For investors, the pressing question is whether Abuja will act fast enough to stop the bleeding — or whether the market will need months to recover from a tax shock that hasn’t even taken effect yet.

Michael Burry, the contrarian investor immortalized in The Big Short, has closed the chapter on managing money for external clients. On Monday, regulatory filings confirmed that Scion Asset Management—Burry’s hedge fund—was deregistered with the U.S. Securities and Exchange Commission.

The fund had managed roughly $155 million across four accounts as of late March, according to its most recent Form ADV filing. The move marks a return to a model Burry has used before: focusing solely on personal capital while shedding the pressures of managing client money.

Burry himself posted the development on X, sharing a screenshot of Scion’s terminated status on Wednesday evening. He had foreshadowed the change in a post on October 30, his first since April 2023. In it, he reflected on the nature of market cycles, writing: “Sometimes, we see bubbles. Sometimes, there is something to do about it. Sometimes, the only winning move is not to play.”

The timing coincides with a period of heightened market volatility and speculation, particularly in the artificial intelligence sector. Burry drew attention in October when Scion’s third-quarter portfolio update revealed bearish put options on Nvidia and Palantir, two leading AI-focused companies. The disclosure prompted a public exchange with Palantir CEO Alex Karp, who called the positions “batshit crazy.” Burry responded on X that he was unsurprised Karp “cannot crack a simple 13F,” referencing the regulatory filing that details major institutional holdings.

Burry also addressed misreported figures around the Palantir trades. Media outlets had suggested he had bet $912 million against the stock, but he clarified that he purchased 50,000 put option contracts, each covering 100 shares, at a premium of $1.84 per share, totaling $9.2 million.

“That was done last month,” he wrote. “On to much better things Nov 25th.” His X bio now reads: “Official X account for ‘The Big Short’ Michael Burry, M.D., dubbed ‘Cassandra’ by Warren Buffett. Now unchained -??? launches Nov 25th, Stay Tuned!”

Following a Familiar Pattern

Burry’s exit from managing external capital mirrors past moves by prominent investors seeking autonomy. After profiting from the 2008 housing market collapse, he closed Scion Capital, relaunching it in 2013 as Scion Asset Management with a much smaller set of clients. Freed from investor pressures, he was able to make contrarian bets without answering to demanding clients.

Other high-profile investors have taken similar paths. John Paulson, who also profited from the housing bubble, converted his hedge fund into a family office in 2020. Billionaires David Tepper and Stanley Druckenmiller returned client capital years ago but continue to exert significant market influence. Leon Cooperman did the same in 2018. The late Julian Robertson, founder of Tiger Management, arguably grew even more influential after returning outside money, mentoring a generation of hedge fund managers known as the Tiger Cubs, including Chase Coleman, Andreas Halvorsen, and Philippe Laffont.

Returning external funds allows these investors to focus solely on strategy and market positioning without obligations to write quarterly letters or explain every move to clients. Burry’s social-media activity suggests he plans to embrace this freedom fully, potentially pursuing positions that are more aggressive or unconventional.

Contrarian Moves in AI and Tech Markets

Burry’s recent positions underscore his contrarian approach to AI speculation, likening the current AI investment boom to the dot-com bubble of the late 1990s. The S&P 500 and Nasdaq 100 recently hit record highs, and Burry’s short positions on Nvidia and Palantir reflect skepticism about valuations in a sector experiencing frenzied investor attention.

While Scion Asset Management will no longer accept client money, Burry remains a significant market participant. His “unchained” status may allow him to act and speak more freely, leveraging both his market insight and public platform. Investors and analysts are now looking closely at what Burry will do next, with his moves potentially influencing sentiment in high-flying sectors like technology and AI.

What Comes Next?

Although Burry is returning client capital, his history suggests this is not a retreat from markets but a strategic pivot. In 2008, his bets against the housing bubble made him a legend. Today, he appears poised to take similarly contrarian positions, focusing on sectors and strategies without external constraints.

Burry’s narrative also highlights a broader trend on Wall Street, where high-profile investors increasingly prioritize flexibility and independence over managing outside capital, choosing instead to leverage their insight, reputation, and personal capital to navigate complex, rapidly evolving markets.

In Burry’s case, this latest move may mark the beginning of another influential chapter—one in which he can operate without the boundaries imposed by client obligations, all while retaining the public attention and scrutiny that have followed him for nearly two decades.