PE Firms Freeze Deals in Nigeria as They Lobby Over Higher Tax

Private equity firms in Nigeria are halting new investments and freezing deals in response to the government’s decision to triple capital-gains tax rates, according to insiders familiar with the matter. The slowdown comes as firms actively lobby policymakers to mitigate the tax hike’s financial impact, which they argue could stifle foreign and domestic investment in Africa’s largest economy. The tax increase, implemented in early 2026, marks a sharp rise from previous rates, prompting concerns over reduced profitability and lower returns for investors in Nigerian markets. Industry sources report that deal pipelines have stalled, with some firms pausing due diligence and negotiations until clarity on tax adjustments or exemptions emerges from ongoing discussions. The move reflects broader apprehension among investors about Nigeria’s evolving regulatory landscape, which could deter long-term capital commitments if unresolved.