Economic Experts Debate New PenCom Rules, Capital Gains Tax on Latest “Drinks and Mics” Episode

Also Read

The latest episode of the popular finance podcast Drinks and Mics featured a high-powered discussion on Nigeria’s evolving economic policies, with a panel of finance experts dissecting the potential impact of new investment rules and tax reforms on markets and the Naira.

In what hosts described as one of their most “explosive” episodes yet, Ugodre, Arnold, Tunji, and Otunba Dele welcomed fan-favourite guest Samson Esemuede, Chief Investment Officer at Zrosk Investment Management, for a deep dive into the changing dynamics of Nigeria’s financial landscape.

---

Naira Devaluation and Import Contraction: A Silver Lining?

The discussion opened with observations on Nigeria’s shrinking import demand — a development the analysts believe could create room for economic revitalization through domestic production.

However, the panel agreed that while the Naira’s devaluation may have been poorly managed, a weaker local currency could ultimately make Nigerian exports more competitive, particularly in the manufacturing and agriculture sectors.

---

Controversy Over Capital Gains Tax

A major talking point of the episode was the proposed 25% to 30% capital gains tax on profits from the sale of Nigerian equities beyond a certain threshold, particularly for corporate investors.

The panelists voiced concern that such a steep tax could deter both domestic and foreign investors, potentially slowing recovery in the equities market. They also noted that the rate is significantly higher than in comparable African markets such as Ghana and Kenya, and that no transitional protection has been provided for existing investors.

“This policy could discourage capital inflows at a time when Nigeria needs investor confidence the most,” one panelist warned, calling for a more gradual or incentive-driven approach.

---

PenCom’s High Capital Requirement Questioned

The crew also scrutinized the new capital requirements set by the National Pension Commission (PenCom), questioning the rationale for such high thresholds given that Pension Fund Administrators (PFAs) primarily operate under a defined contribution system — acting mainly as administrators and advisors, not traditional risk-bearing investors.

They argued that the new rules could limit smaller PFAs and reduce competition, ultimately affecting returns for pension contributors.

---

Redefining Economic Progress

In closing, the discussants agreed that Nigeria’s economic performance should be measured not just by exchange rate movements, but by GDP per capita adjusted for purchasing power — a more accurate reflection of living standards for ordinary Nigerians.

---

Why It Matters

The Drinks and Mics podcast has gained traction for offering grounded, data-driven insights into Nigeria’s financial system — blending expert analysis with relatable commentary. This latest episode underscores the importance of balanced, long-term policymaking to ensure economic growth translates into improved quality of life for citizens.

Listeners can tune in to the full episode to hear unfiltered perspectives on the new PenCom rules, the capital gains tax debate, and the future of the Naira.