Capital Gains Tax in Nigeria 2026: The Complete Guide

Capital Gains Tax (CGT) is one of the most misunderstood taxes in Nigeria's fiscal framework. With the enactment of the Nigeria Tax Act 2026 (NTA 2026) , the rules governing capital gains have been consolidated, clarified, and in some areas, significantly updated. This guide breaks down everything taxpayers need to know — whether you are selling shares, disposing of property, or transferring business assets.

What Is Capital Gains Tax Under Nigerian Law?

Capital Gains Tax is a levy on the profit you make when you dispose of a chargeable asset. The tax is not on the total sale price — it is calculated on the gain, which is the difference between the disposal proceeds and the cost of acquisition (plus allowable incidental costs).

Under Section 1 of the Capital Gains Tax Act (CGTA) , now harmonised within the NTA 2026 framework, CGT applies to all gains accruing to any person — individual, company, or trust — on the disposal of assets situated in Nigeria, regardless of where the disposal takes place.

What Assets Are Chargeable?

The NTA 2026 retains the broad definition of chargeable assets from the CGTA. Chargeable assets include:

• •Real property: Land, buildings, and leaseholds in Nigeria
• •Shares and securities: Stocks in Nigerian companies, bonds, and debentures
• •Business assets: Goodwill, plant and machinery, intellectual property
• •Foreign currency: Gains on certain foreign exchange transactions
• •Options and derivatives: Rights to acquire or dispose of assets
• •Chattels: Personal property such as jewellery, art, and collectibles (subject to certain thresholds)

Assets specifically exempt from CGT include:

• •Private motor vehicles
• •Decorations awarded for valour (unless purchased)
• •Stocks and shares held in a recognised unit trust scheme
• •Gains on assets transferred between spouses or as part of a divorce settlement
• •Compensation for personal injury or defamation
• •Gains from the disposal of a principal private residence, provided the proceeds are reinvested in another residence within 12 months

The 2026 CGT Rate: What Has Changed?

Historically, Capital Gains Tax in Nigeria was charged at a flat rate of 10% on all chargeable gains. However, the NTA 2026 introduced a more progressive framework:

• •Individuals: CGT remains at 10% on net chargeable gains
• •Companies: The rate has been aligned with the Company Income Tax rate, meaning companies now pay CGT at 30% on chargeable gains (for large companies with turnover above ₦100 million). Medium-sized companies (turnover between ₦25 million and ₦100 million) pay at 20%, while small companies with turnover below ₦25 million remain exempt.

This alignment is a significant policy shift designed to close the arbitrage gap where companies previously structured transactions as "capital disposals" rather than revenue transactions to benefit from the lower 10% rate.

How to Calculate Capital Gains Tax: A Practical Example

Let us walk through a typical scenario:

Scenario: Mrs Adeola purchased a plot of land in Lekki, Lagos, in January 2021 for ₦15,000,000. She incurred legal fees of ₦500,000 and agency fees of ₦300,000 during the purchase. In March 2026, she sold the land for ₦28,000,000, paying estate agent commission of ₦600,000 and legal fees of ₦400,000.

Step 1: Determine the Cost of Acquisition

• •Purchase price: ₦15,000,000
• •Incidental costs of acquisition: ₦500,000 + ₦300,000 = ₦800,000
• •Total cost base: ₦15,800,000

Step 2: Calculate Net Disposal Proceeds

• •Selling price: ₦28,000,000
• •Incidental costs of disposal: ₦600,000 + ₦400,000 = ₦1,000,000
• •Net proceeds: ₦27,000,000

Step 3: Compute the Chargeable Gain

• •Net proceeds: ₦27,000,000
• •Less cost base: ₦15,800,000
• •Chargeable gain: ₦11,200,000

Step 4: Apply CGT Rate (Individual)

• •CGT at 10%: ₦11,200,000 × 10% = ₦1,120,000

Mrs Adeola must remit ₦1,120,000 to the Nigeria Revenue Service (NRS) as Capital Gains Tax.

Filing and Payment Deadlines

Under the NTA 2026, the compliance timeline for CGT has been tightened:

• •Individuals: CGT must be self-assessed and paid within 30 days of the disposal date. A CGT return (Form CGT-01) must be filed with the NRS.
• •Companies: CGT is filed alongside the annual Company Income Tax return. However, where a company disposes of a substantial asset (defined as exceeding 25% of its total asset base), an interim CGT return must be filed within 60 days.

Failure to file or pay on time attracts penalties:

• •Late filing: ₦25,000 for the first month and ₦10,000 for each subsequent month of default
• •Late payment: Interest at the prevailing Central Bank of Nigeria (CBN) Monetary Policy Rate plus 5%

Rollover Relief and Reinvestment Provisions

The NTA 2026 preserves the rollover relief mechanism. When you dispose of a business asset and reinvest the proceeds in a replacement business asset within 12 months (before the disposal or within 12 months after), the gain is rolled over — meaning no CGT is payable at the point of disposal. Instead, the gain is deducted from the cost of the new asset for CGT purposes on a future disposal.

Example: ABC Nigeria Ltd sells a factory building for ₦50,000,000, realising a gain of ₦20,000,000. Within 8 months, the company purchases a new warehouse for ₦70,000,000. The ₦20,000,000 gain is rolled over, and the new asset's CGT base cost becomes ₦50,000,000 (₦70,000,000 − ₦20,000,000).

This relief is not available for individuals disposing of non-business assets.

Exemption for Small Companies

The NTA 2026 provides complete CGT exemption for small companies — defined as companies with annual gross turnover of ₦25,000,000 or less. This is a deliberate policy measure to reduce the compliance burden on micro and small enterprises and encourage entrepreneurship.

Disposal of Shares in Nigerian Companies

Gains from the disposal of shares in Nigerian companies listed on the Nigerian Exchange (NGX) are exempt from CGT, provided the disposal occurs through the exchange. However, off-market disposals and disposals of shares in private companies remain fully chargeable. This exemption is designed to encourage investment in the Nigerian capital market.

International Considerations

Non-residents who dispose of assets situated in Nigeria are also subject to CGT. The NTA 2026 requires the NRS to collect CGT from non-residents through a withholding mechanism — the purchaser is obligated to withhold the CGT at the point of payment and remit to the NRS within 30 days. Failure to withhold renders the purchaser jointly liable for the tax.

Nigeria's Double Taxation Agreements (DTAs) with various countries may provide relief or reduced rates for non-residents. Taxpayers should consult the specific DTA applicable to their jurisdiction.

Key Takeaways

• •CGT in Nigeria applies to gains on the disposal of chargeable assets at rates of 10% (individuals) and up to 30% (companies) under the NTA 2026
• •The cost base includes the purchase price plus all incidental costs of acquisition and disposal
• •Individuals must file and pay within 30 days; companies follow the CIT filing cycle with interim returns for substantial disposals
• •Rollover relief is available for business asset replacements within 12 months
• •Small companies (turnover ≤ ₦25 million) are fully exempt
• •Listed NGX shares are exempt; private share disposals are chargeable

Need help computing your Capital Gains Tax or filing your CGT return? Taxee provides automated CGT calculation tools and direct filing integration with the NRS portal. Stay compliant, stay informed.