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Capital Gains Tax in Nigeria 2026: Complete Guide to Rates, Calculation, Filing & Exemptions
If you’ve sold a property, disposed of shares, or made a profit from crypto in Nigeria this year, there’s a good chance you now owe capital gains tax (CGT). But here’s the twist: the rules changed completely on 1 January 2026.
The Nigeria Tax Act 2025 (Act No. 7) repealed the old Capital Gains Tax Act and folded chargeable gains into a unified income tax framework. That means the old flat 10% rate you may have read about is gone. Companies now pay 30% on chargeable gains, while small companies pay 0%. For individuals, gains are now taxed as part of total income at progressive rates.
This guide walks you through everything you need to know about capital gains tax in Nigeria in 2026 — the rates, who pays, what’s exempt, how to calculate your liability, and how to file and pay. No jargon, just practical steps you can follow.
1. What Is Capital Gains Tax (CGT) in Nigeria?
Capital gains tax is a tax on the profit you make when you sell or dispose of an asset that has increased in value. It’s not a tax on the total sale proceeds — only on the gain (the difference between what you paid and what you sold for, minus allowable costs).
Under the Nigeria Tax Act 2025, CGT is now integrated into the unified income tax framework. The Act, which took effect on 1 January 2026, repealed the standalone Capital Gains Tax Act, the Companies Income Tax Act, and the Personal Income Tax Act, consolidating them into a single piece of legislation (Nigeria Tax Act 2025, National Assembly).
How CGT differs from other taxes
| Tax Type | What It Taxes | When It Applies |
|---|---|---|
| Capital Gains Tax | Profit from selling an asset | On disposal (sale, transfer, exchange) |
| Income Tax | Salary, business profits, rental income | On earning/receiving income |
| Withholding Tax | Dividends, interest, royalties | Deducted at source before you receive payment |
Who does CGT apply to?
- Individuals — including sole traders and freelancers
- Companies — both Nigerian and foreign companies with Nigerian-source gains
- Trusts and estates
The key change in 2026
Under the old Capital Gains Tax Act, individuals paid a flat 10% on chargeable gains. That law is now repealed. Under the Nigeria Tax Act 2025, chargeable gains for individuals are now taxed as part of total income at progressive personal income tax rates (which range from 7% to 24% under the PAYE structure). The FIRS has not yet issued specific guidance on how individual CGT will be assessed in practice, so professional advice is strongly recommended if you’re an individual with significant gains.
For companies, the rate is clearer: 30% of chargeable gains, aligned with the corporate income tax rate. Small companies (turnover ≤₦100 million and fixed assets ≤₦250 million, excluding professional services) pay 0% and are fully exempt (NTA 2025 Section 56).
2. Legal Framework and 2026 Updates
The Nigeria Tax Act 2025 is the most significant tax reform in Nigeria in decades. Here’s what changed and what it means for investors.
The Nigeria Tax Act 2025 at a glance
The Act received assent in June 2025 and came into force on 1 January 2026. It repealed and consolidated:
- Capital Gains Tax Act
- Companies Income Tax Act
- Personal Income Tax Act
- Tertiary Education Trust Fund Act
- Nigeria Police Trust Fund Act (relevant portions)
(Nigeria Tax Act 2025, National Assembly)
Key changes affecting capital gains
1. Digital assets are now explicitly taxable
Profits from transactions in digital assets — including crypto assets, utility tokens, security tokens, and NFTs — are now chargeable to tax under Section 4(1)(j) of the NTA 2025. If you sold Bitcoin, Ethereum, or any other digital asset at a profit in 2026, that gain is taxable.
2. Indirect transfers are caught
Section 47 of the NTA 2025 introduces rules on indirect transfers. If a non-resident disposes of shares in a foreign company, and that disposal results in a change of ownership of a Nigerian company or Nigerian-located assets, the gain is now subject to Nigerian CGT. This closes a loophole that previously allowed foreign investors to avoid Nigerian tax by selling offshore holding companies.
3. Withholding tax on dividends is a final tax
Under Section 19 of the NTA 2025, dividends received after withholding tax (WHT) deduction constitute franked investment income. For non-residents, no further tax is charged on dividends beyond the WHT deducted at source. For residents, the WHT is also a final tax — you don’t need to declare dividend income again in your annual tax return.
4. Small companies get a full exemption
Small companies — those with turnover ≤₦100 million and fixed assets ≤₦250 million, excluding professional services — are exempt from CGT entirely. This is confirmed in both the NTA 2025 and the NIPC Investment Incentives & Statutory Reliefs 2026.
Who administers CGT?
The Federal Inland Revenue Service (FIRS) administers CGT for companies and for individuals in the Federal Capital Territory (Abuja). State Internal Revenue Services handle individual CGT in their respective states. You’ll need to file with the appropriate authority depending on your status and location.
Foreign investors and repatriation
If you’re a foreign investor, the NIPC Act guarantees unconditional transferability of funds — dividends, profits, loan servicing, and liquidation proceeds — in freely convertible currency. This guarantee is detailed in the NIPC Investment Incentives & Statutory Reliefs 2026 document.
A note on the 2026 review
In September 2026, the federal government commenced a six-week review of the new tax laws, led by tax expert Taiwo Oyedele, to address implementation gaps (Punch Nigeria, 23 September 2026). Early reports suggest the new regime has already impacted mergers and acquisitions, with deal values plunging 89% year-on-year (Businessday NG, 25 September 2026). Keep an eye on this review — further changes may be coming.
3. Who Pays CGT? – Assets Covered and Exemptions
Chargeable assets
Under the NTA 2025, the following are chargeable assets:
| Asset Class | Examples |
|---|---|
| Real estate | Land, buildings, commercial property |
| Securities | Shares, bonds, debentures (subject to exemptions below) |
| Business assets | Goodwill, intellectual property, plant and machinery |
| Digital assets | Crypto, utility tokens, security tokens, NFTs |
| Indirect transfers | Offshore share disposals affecting Nigerian assets |
What’s exempt from CGT?
The NTA 2025 provides several important exemptions. Here’s what you need to know:
1. Principal private residence (once in a lifetime)
Gains from the disposal of your principal private residence are exempt — but only once in your lifetime. The exemption is limited to a dwelling house with up to one acre of adjoining non-commercial land (NTA 2025 Section 51).
2. Personal chattels
Tangible movable property (cars, furniture, jewellery, art) is exempt if the sale consideration does not exceed ₦5 million or three times the annual national minimum wage, whichever is higher (NTA 2025 Section 52).
3. Small companies
Companies with turnover ≤₦100 million and fixed assets ≤₦250 million (excluding professional services) are fully exempt from CGT (NTA 2025 Section 56).
4. Share disposals — two key exemptions
This is the one most investors care about. Gains on disposal of shares in Nigerian companies are exempt if:
- Option A: The disposal proceeds are less than ₦150 million AND the chargeable gain does not exceed ₦10 million in any 12 consecutive months; OR
- Option B: The proceeds are reinvested in the same or other Nigerian companies within the same year of assessment (roll-over relief).
5. Compensation for loss of employment or injury
Sums up to ₦50 million received as compensation for loss of office or injury are exempt. The excess is chargeable (NTA 2025 Section 50).
6. Gifts and inheritances
Transfers between spouses and assets transferred upon death are generally not chargeable.
Special cases
- Cryptocurrency: Now taxable. If you made gains from crypto in 2026, you need to declare them.
- Foreign assets held by Nigerian residents: Gains are taxable in Nigeria if you’re a Nigerian tax resident, subject to double taxation relief where applicable.
- Foreign investors selling Nigerian shares: The ₦150 million/₦10 million exemption applies, but indirect transfers via offshore structures are now caught by Section 47.
4. Capital Gains Tax Rates and How to Calculate (With Naira Examples)
Current CGT rates in Nigeria (2026)
| Taxpayer Type | CGT Rate | Notes |
|---|---|---|
| Standard companies | 30% | Aligned with corporate income tax rate |
| Small companies | 0% | Turnover ≤₦100m, fixed assets ≤₦250m |
| Individuals | Progressive (7%–24%) | Gains taxed as part of total income; specific FIRS guidance awaited |
The calculation formula
Chargeable gain = Proceeds from disposal − (Cost of acquisition + Incidental costs) − Indexation allowance (if applicable)
Where:
- Proceeds = what you sold the asset for
- Cost of acquisition = what you originally paid
- Incidental costs = legal fees, valuation fees, agent commissions, advertising costs
- Indexation allowance = an inflation adjustment applied to the cost (where FIRS provides a table)
Example 1: Company selling Lagos property
A company bought a commercial property in Lekki, Lagos for ₦15 million in 2018. In 2026, it sells the property for ₦25 million.
- Sale proceeds: ₦25,000,000
- Cost of acquisition: ₦15,000,000
- Incidental costs (legal fees, agent commission): ₦2,000,000
- Indexation allowance (assumed): ₦3,000,000
Chargeable gain = ₦25m − (₦15m + ₦2m) − ₦3m = ₦5,000,000
CGT at 30% = ₦5,000,000 × 30% = ₦1,500,000
Example 2: Individual selling shares (exempt)
You sell Nigerian Breweries shares for ₦100 million, realising a gain of ₦8 million.
Since the proceeds (₦100m) are less than ₦150 million AND the gain (₦8m) does not exceed ₦10 million in any 12 consecutive months, the gain is exempt under Section 34(1)(a)(i).
CGT payable: ₦0
Example 3: Digital asset disposal (taxable)
You bought Bitcoin for ₦2 million and sold it for ₦7 million in 2026, realising a gain of ₦5 million.
Under Section 4(1)(j) of the NTA 2025, profits from digital asset transactions are chargeable. The gain of ₦5 million forms part of your total income for the year and is taxed at your applicable rate.
CGT payable: Depends on your total income bracket (7%–24% for individuals)
Example 4: Large share disposal (taxable)
A company sells shares in a Nigerian listed company for ₦200 million, realising a gain of ₦40 million.
Since proceeds exceed ₦150 million, the exemption doesn’t apply. The gain is chargeable.
CGT at 30% = ₦40,000,000 × 30% = ₦12,000,000
5. Step-by-Step Guide to Calculate and Pay CGT in Nigeria
Here’s how to handle your CGT obligations in 2026, step by step.
Step 1: Determine if your gain is chargeable
Check the exemptions in Section 3 above. If your disposal falls under any exemption (principal residence, small company, share disposal under ₦150m/₦10m, etc.), you may not owe CGT. When in doubt, consult a tax professional.
Step 2: Gather your documents
You’ll need:
- BVN (Bank Verification Number) — required for e-tax portal registration
- NIN (National Identification Number) — required for individual taxpayers
- Title deed or certificate of occupancy (for property)
- Sale agreement / contract of sale
- Receipts for improvements (these can increase your cost base)
- Tax clearance certificate (TCC) — you’ll need this for many transactions
Step 3: Compute your chargeable gain
Use the formula: Proceeds − (Cost + Incidental costs) − Indexation allowance.
If you’re unsure about the indexation allowance, check the FIRS website for the current table or consult a professional.
Step 4: File your CGT return
For companies and FCT residents: File via the FIRS e-tax portal.
For individuals in states: File with your State Internal Revenue Service.
You’ll need to complete the relevant CGT return form and submit it within 90 days of the disposal.
Step 5: Pay the tax
Payment options include:
- Remita (online payment platform)
- Bank draft in favour of the relevant tax authority
- Direct debit from your bank account
Costs to budget for:
| Item | Estimated Cost |
|---|---|
| Filing fee | ₦1,000 – ₦5,000 |
| Professional fees (accountant/tax consultant) | ₦50,000 – ₦200,000 |
| Late filing penalty | Up to ₦50,000 or more (varies) |
Step 6: Obtain your receipt and update your TCC
After payment, you’ll receive a receipt. Keep this safe — you’ll need it to update your Tax Clearance Certificate, which is often required for major transactions, visa applications, and government contracts.
Timeline summary
| Action | Deadline |
|---|---|
| File CGT return | Within 90 days of disposal |
| Pay CGT | On filing (payment due with return) |
| Update TCC | After payment received |
6. Comparison Table: CGT vs Other Nigerian Investment Taxes
| Tax Type | Trigger Event | Rate | Who Pays | Filing Frequency |
|---|---|---|---|---|
| Capital Gains Tax | Disposal of chargeable asset | 30% (companies); 0% (small companies); progressive for individuals | Company/individual | Within 90 days of disposal |
| Withholding Tax on Dividends | Dividend payment | 10% (final tax for all recipients) | Company deducts at source | Quarterly remittance |
| Withholding Tax on Interest | Interest payment | 10% (individuals); varies for companies | Payer deducts at source | Quarterly remittance |
| Stamp Duty | Transfer of shares, property documents | 0.75% – 1.5% depending on instrument | Buyer/purchaser | At transaction |
| Development Levy | Company profits | 1% (small companies exempt) | Companies | Annual |
7. Frequently Asked Questions
Do I pay capital gains tax on cryptocurrency in Nigeria?
Yes. Under Section 4(1)(j) of the Nigeria Tax Act 2025, profits from transactions in digital assets — including crypto, utility tokens, security tokens, and NFTs — are explicitly chargeable to tax. If you sold crypto at a profit in 2026, you need to declare the gain.
What is the capital gains tax rate for individuals in Nigeria in 2026?
The old flat 10% rate for individuals no longer applies. Under the NTA 2025, chargeable gains for individuals are now taxed as part of total income at progressive personal income tax rates (7%–24% under the PAYE structure). The FIRS has not yet issued specific guidance on how individual CGT will be assessed, so professional advice is recommended.
Are dividends taxed in Nigeria?
Yes, but withholding tax on dividends is a final tax. Under Section 19 of the NTA 2025, no further tax is charged on dividends beyond the WHT deducted at source. For residents, the WHT rate is 10%; for non-residents, it’s also 10%.
Do I pay capital gains tax when I sell shares in Nigerian companies?
It depends. Gains on share disposals are exempt if:
- Proceeds are less than ₦150 million AND the gain does not exceed ₦10 million in 12 consecutive months; OR
- Proceeds are reinvested in Nigerian companies within the same year of assessment.
If your disposal exceeds these thresholds, the gain is chargeable at 30% (companies) or your applicable rate (individuals).
What is the capital gains tax rate for companies in Nigeria?
30% for standard companies, aligned with the corporate income tax rate. Small companies (turnover ≤₦100m, fixed assets ≤₦250m) pay 0% and are fully exempt.
Is selling my house subject to capital gains tax in Nigeria?
Gains from the disposal of your principal private residence are exempt — but only once in your lifetime. The exemption is limited to a dwelling house with up to one acre of adjoining non-commercial land. If you sell a second property or an investment property, the gain is chargeable.
What happens if I don’t pay capital gains tax in Nigeria?
Late filing and non-payment attract penalties and interest. The FIRS can also assess you for unpaid taxes and pursue recovery. In serious cases, this can include prosecution. It’s always better to file and pay on time.
Do foreign investors pay capital gains tax in Nigeria?
Yes, if the gain arises from Nigerian assets. Under Section 47 of the NTA 2025, even indirect transfers — where a non-resident sells shares in a foreign company that owns Nigerian assets — are now subject to Nigerian CGT. However, the NIPC Act guarantees unconditional transferability of funds in freely convertible currency.
8. What to Do Next
The new tax regime is a significant change, and the government is still reviewing implementation gaps as of September 2026. Here’s your action plan:
- Review your 2026 disposals. If you’ve sold property, shares, crypto, or other assets this year, determine whether you have a chargeable gain.
- Check your exemptions. The ₦150m/₦10m share disposal exemption and the small company exemption could save you significant money.
- Gather your documents. BVN, NIN, title deeds, sale agreements, and receipts for improvements.
- Calculate your gain. Use the formula in Section 4, or engage a tax professional for complex cases.
- File within 90 days. Use the FIRS e-tax portal or your State Internal Revenue Service.
- Monitor the ongoing review. The six-week government review of the tax laws, which began in September 2026, may result in further changes. Stay informed through reputable sources.
- Get professional advice if needed. The new rules are complex, especially for individuals, digital asset holders, and foreign investors. A qualified tax consultant can help you navigate the system and avoid costly mistakes.
This article is for educational purposes only and does not constitute tax, legal, or financial advice. Tax laws are complex and subject to change. Always consult a qualified professional for advice specific to your situation.
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