The new CGT regime becomes effective January 1, 2026, as part of the 2025 Finance and Tax Reform Act implementation plan.
What Capital Gains Tax (CGT) Is in Nigeria
Capital Gains Tax is a tax charged on the profit (gain) you make when you dispose of (sell or transfer) a chargeable asset, such as shares, equity instruments, goodwill, digital assets, or other investment property. It is levied on gains realised from such disposals, not on the total sale value. Traditionally, the CGT was governed by the Capital Gains Tax Act (Cap. C1, Laws of the Federation of Nigeria), a law originally passed in 1967 and amended over time. Under that law, CGT was a flat 10% on capital gains for both individuals and companies. Now, the tax has been administered by the Nigeria Revenue Service (NRS), which recently transitioned from Federal Inland Revenue Service (FIRS) as part of the implementation of Nigeria’s new tax regime under the Nigeria Revenue Service (Establishment) Act, 2025, enacted by President Bola Tinubu in June same year. However, the reform of a new CGT regime under the Nigeria Tax Act 2025 have significantly modernized and expands how CGT works in Nigeri…
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Temmy Samuel is an aspiring BSc Accounting graduate, financial writer, tech journalist, and the publisher of Finng Daily, a financial and business reporting publication, as well as BigSwich, a tech news platform. Learn more about Temmy Samuel.
