Value Added Tax (VAT) Exemption of Commissions on Stock Exchange Transactions

Monday, October 27, ​2014

Further to the measur​es announced by the Coordinating Minister of the Economy and Honourable Minister of Finance (CME) Dr. Ngozi Okonjo-Iweala, CFR on December 3, 2012, to resuscitate the Nigerian Capital Market, The Exchange is pleased to learn that the VAT exemption is now effective on all commissions applicable to capital market transactions.  These are commissions: (a) earned on traded values of shares, and (b) payable to the Securities and Exchange Commission (SEC), The Nigerian Stock Exchange (NSE) and the Central Securities Clearing System (CSCS). The exemption is effective for a period of five years according to the Federal Government gazette on the issue.

The Exchange’s Chief Executive Officer, Mr. Oscar N. Onyema, OON, applauded the Federal Government for implementing the elimination of VAT on stock market transaction fees. He stated that this is one of the measures announced by the Honourable CME in December 2012 and it is a demonstration that the Capital Market is a key component of the Federal Government’s transformation agenda.

According to Mr. Onyema, investments should not be categorized as consumer goods purchases, but as a platform to promote a long term savings culture that could be channeled towards economic growth and development. Mr. Onyema added that “the elimination of VAT on stock market transaction fees will ultimately reduce the cost of transactions for investors, and will encourage investments in the Nigerian Capital Market”.  

Mr. Onyema noted that the stamp duty waiver, which was also announced in 2012 by the Honourable Minister is yet to be implemented. He expressed confidence that the Federal Government will expedite the implementation process in the interest of investors in the Nigerian Capital Market, which is an important engine of growth for the Nigerian economy.​
The Nigerian Stock Exchange on October 9, 2014 won the award for Best Initiative in Support of SMEs and the Millennium Development Goals at this year’s Africa Investor (Ai) Investment and Business Leader Awards.