How Government Policy Can Boost Your Money in Nigeria

Government policy can affect your money. Tax changes, CBN rules, pension rules, insurance rules, and import rules can change how much you earn and what you should buy or sell. After the tough years of 2023–2024, things look a bit better. 

Inflation is about 18.02% in October 2025, the policy rate is 27%, and the naira is around ₦1,464 to $1. These changes create new chances to make money and also new risks.

Capital Gains Tax and tax on FGN bonds

The government now taxes big share sales. If you sell many shares and your total sales in a year are above ₦150 million, you may pay more tax on your gains. Interest from FGN bonds is also taxed. This means the interest rate you see is not the amount you take home. To keep more money, plan your sales. Do not sell everything at once if you can avoid it.

Spread your sales across time. If you hold shares you no longer believe in, you can sell them to create a loss and use that loss to reduce tax on profits from other shares. Always compare what you will receive after tax. A bond that pays 15% may give you only about 12–13% after tax.

A strong company’s commercial paper at around 20% could pay you more, but it is riskier. Some income funds also help manage tax and pay a steady cash.

More government borrowing and bond yields

The government spends more than it earns, so it borrows by selling bonds. When more bonds come to the market, interest rates can go up for a while. If inflation keeps falling later, interest rates can drop and bond prices can rise. You can benefit by locking in today’s higher rates.

Many people keep some money in short T-Bills for flexibility and some in three-to-seven-year FGN bonds for higher income and possible price gains if inflation drops. You can add a small amount of top-rated commercial paper for extra income, but choose safe companies and spread your risk.

Insurance recapitalisation

Insurers must raise more capital. In the short term, selling new shares can reduce earnings per share and push prices down. Over time, stronger balance sheets help companies write bigger policies, get better reinsurance deals, and invest in technology.

Look for insurers that already meet the new capital level or have a clear, fair plan to raise it. Companies that will buy others, not be bought, may create more value when the sector consolidates.

High rates and the naira

High interest rates support the naira and make naira income assets look good again. For example, ₦5 million in a 14% FGN bond can become about ₦5.7 million after one year. If you change ₦5 million to dollars at ₦1,464 per dollar, you get about $3,415.

If you place that in a 7% Eurobond, you end near $3,655 after a year. If the naira gets stronger, the naira value of those dollars can fall when you convert back. So, let naira investments do more work now, but still keep some dollars for safety. If you think inflation will keep falling, longer bonds can also rise in price.

Pension fund rules and the stock market

When PENCOM allows pension funds to buy more shares, demand for big, strong, well-run companies goes up. Prices and trading can improve. It helps to own the type of companies pensions want: large, liquid, profitable, with clear earnings, good cash flow, and low debt.

Well-capitalised banks, telecoms with strong data growth, and consumer companies with pricing power and local sourcing often fit this picture. If you do not want to pick single stocks, choose a balanced or equity mutual fund that follows these ideas.

Import rules, FX access, and local production

Tighter import rules and harder FX access push companies to use local inputs. Agro-businesses and FMCGs with strong local supply chains handle currency swings and port delays better. Firms that invest in storage, silos, logistics, and farms often cut costs over time and increase profit margins.

In Nigeria, examples often mentioned include Okomu Oil, Presco, and Nestlé. Always check the numbers yourself before you invest.