How to compute NG Cgt for Nigeria, tax year 2025: rates, thresholds, and step-by-step rules with primary-source citations.
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Accountant-authored. Written and published by Omolola Fasasi , an accountant approved on OpenAccountants. Their licence number (MB058950) is published on their profile, so you can check it against the register yourself. No second accountant has attested to this version yet. General reference material, not advice on your specific facts; don't file, pay, or take a position on it without a professional reviewing your situation.
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CGT rate - companies
0.3NIGERIA TAX ACT 2025
CGT rate - individuals
0% - 25%NIGERIA TAX ACT 2025
Gain on disposal of principal private residence
ExemptNIGERIA TAX ACT 2025
Gains on Nigerian government securities
ExemptNIGERIA TAX ACT 2025
Gains from life assurance policies
ExemptNIGERIA TAX ACT 2025
CGT return filing deadline
returns mus be filed bi - annually by 30th juneNIGERIA TAX ACT 2025
Indexation allowance available
The Nigeria Tax Act (NTA) completely eliminates inflation indexation allowances when computing Capital Gains Tax. The new law explicitly prohibits the indexation of asset base costs for inflation and rules out capital losses for offset. [1]NIGERIA TAX ACT 2025
Capital losses — offset rule
capital losses to be offset against gains of the same asset class and carried forwardNIGERIA TAX ACT 2025
CGT - share sale exemption threshold proceeds <#150m and gains <#10m in 12 consecutive months
ExemptNIGERIA TAX ACT 2025
Required inputs before computing Nigerian CGT position
1. Identity & residency — taxpayer name, TIN, residency status (resident individual, resident company, non-resident). 2. Asset description — class (real property, shares, business asset, intangible, other chattel). 3. Acquisition data — acquisition date, acquisition cost (with documentary support), incidental costs of acquisition. 4. Disposal data — disposal date, disposal proceeds, incidental costs of disposal (legal fees, commissions, transfer duties). 5. Connection — whether the parties are connected persons (market value rule applies under CGTA s. 19). 6. For shares — aggregate proceeds from share disposals in the same 12-month window across the taxpayer's portfolio; reinvestment in other Nigerian company shares within the same tax year. 7. For business assets — whether replacement asset has been acquired (or will be) within the rollover window. 8. Prior-year losses — CGT losses brought forward (capital losses ring-fenced from income).
Acquisition cost is unknown or undocumented
Cannot compute chargeable gain; do not use estimates without explicit reviewer sign-off
Asset acquired by gift / inheritance with no probate valuation
Need market-value documentation for base cost
Cross-border disposal where double-tax-treaty relief may apply
Requires bilateral treaty analysis — out of scope of this skill
Disposal of partnership interests
Treatment uncertain under CGTA; refer to FIRS guidance
Mineral rights / oil-block disposals
Petroleum Industry Act overlay — out of scope
Trust / estate disposals
Specialist trust-CGT regime — out of scope
Disposal occurring after NTA 2025 commencement where final implementing regulations are not yet published
Conservative default: compute under CGTA framework, flag for review once NTA regulations issued
Insufficient evidence that the ₦100M share threshold has been correctly aggregated across the taxpayer's full portfolio
Cannot confirm exemption eligibility
Chargeable persons
CGT is charged on the chargeable gains accruing to: - A resident individual — on worldwide chargeable assets, subject to remittance basis for non-Nigerian-situs assets where gains are not brought into Nigeria. - A resident company — on worldwide chargeable assets. - A non-resident person — on chargeable assets situated in Nigeria (Nigerian land, Nigerian-incorporated company shares, business assets used in a Nigerian trade or branch).CGTA s. 2
Chargeable assets
All forms of property are chargeable assets, including: - Land and buildings (whether in Nigeria or abroad, for residents). - Shares and stocks of any company, subject to the Finance Act 2021 ₦100M threshold (see §4). - Goodwill and other intangible business assets. - Options, debts, and incorporeal property generally. - Currency other than Nigerian currency. - Any form of property created by the person disposing of it.CGTA s. 3
Chargeable gain / CGT payable formula
Chargeable gain = Disposal proceeds − Allowable acquisition cost − Incidental costs of acquisition − Incidental costs of disposal − Enhancement expenditure (capital improvements only) CGT payable = Chargeable gain × 10%
Allowable deductions
- Original acquisition cost. - Incidental costs of acquisition (legal fees, stamp duty, survey, commission). - Enhancement expenditure reflected in the state of the asset at disposal — routine repairs and revenue expenditure are NOT allowable. - Incidental costs of disposal (legal fees, agent's commission, advertising). - Costs of establishing, preserving, or defending title to the asset.CGTA s. 13
Connected persons rule
Where the disposal is between connected persons (relatives, controlling shareholders, group companies), the transaction is deemed to be at market value, regardless of the stated consideration. This prevents undervaluation between related parties.CGTA s. 19
Capital losses
- Capital losses are ring-fenced — they may only be set against capital gains, not against income. - Losses may be carried forward indefinitely against future capital gains of the same person. - Losses on disposals to connected persons are restricted to gains on subsequent disposals to the same connected person.CGTA s. 5
₦100M share threshold rule
Before the Finance Act 2021, gains on disposals of shares (especially listed shares) were broadly exempt. The Finance Act 2021 introduced a threshold rule: - Share disposals where the aggregate proceeds across all share disposals by the taxpayer in any 12-month period do not exceed ₦100 million remain exempt. - Where aggregate proceeds exceed ₦100 million in any 12-month period, the portion above ₦100M is brought into charge at 10%, unless the proceeds are reinvested in the shares of any Nigerian company within the same tax year. - The reinvestment relief is asset-class specific — reinvestment must be in Nigerian company shares, not in other asset classes. - The taxpayer must aggregate disposals across all brokers, accounts, and NGX-listed and unlisted companies. Worked aggregation rule: Compute total share-disposal proceeds in the rolling 12-month window. Deduct ₦100M. If the residual is positive AND not reinvested in Nigerian shares within the tax year, the chargeable gain attributable to that residual portion is taxable at 10%.Finance Act 2021
Rollover relief on replacement business assets
Where a person disposes of a business asset and acquires a replacement business asset within 12 months before or after the disposal, the gain on the old asset may be deferred (rolled over) into the base cost of the new asset. Qualifying classes of business assets include: - Land and buildings occupied and used for the trade. - Fixed plant and machinery. - Ships, aircraft, hovercraft. - Goodwill. The classes must match — e.g. land replaced with land, plant with plant. Mixed-class rollover requires FIRS confirmation. Where only part of the proceeds is reinvested, partial rollover applies and the un-reinvested portion is immediately chargeable.CGTA s. 32
NTA 2025 consolidation
The Nigeria Tax Act (NTA) 2025, part of the suite of fiscal reforms enacted in 2025, consolidates Capital Gains Tax into the general income tax framework. Pre-2025 CGTA provisions remain operative for disposals during transitional periods, but for periods on or after the NTA commencement date: - CGT is administered alongside Companies Income Tax (CIT) and Personal Income Tax (PIT) under a unified return. - The 10% headline rate is retained for most asset classes (subject to confirmation in implementing regulations). - Treatment of share disposals, the ₦100M threshold, rollover relief, and exemptions is being re-codified — implementing regulations are pending as of the 2025 tax year. - Conservative default: until FIRS publishes the implementing regulations, prepare CGT computations under the pre-NTA CGTA framework and flag the position for review once the regulations are finalised.Nigeria Tax Act (NTA) 2025
Resident individuals filing rules
- CGT computation is appended to the annual Personal Income Tax (PIT) return filed with the relevant State Internal Revenue Service (SIRS) in the taxpayer's state of residence. - Filing deadline: 31 March following the end of the tax year (calendar-year basis), per Personal Income Tax Act (PITA) s. 41. - Payment: due on filing.Personal Income Tax Act (PITA) s. 41
Resident companies filing rules
- CGT computation is appended to the annual Companies Income Tax (CIT) return filed with FIRS. - Filing deadline: 6 months after the end of the company's accounting year (Companies Income Tax Act s. 55). - Payment: due on filing; companies in their first 18 months may use the self-assessment provisions.Companies Income Tax Act s. 55
Non-resident filing / withholding rules
- 10% CGT applies on chargeable gains from Nigerian-situs assets (Nigerian land, Nigerian-incorporated company shares, Nigerian business assets). - For non-resident disposals of Nigerian real property or shares, the buyer / Nigerian payment agent may be required to withhold CGT and remit to FIRS. Confirm in each case whether withholding is mandated by current FIRS Information Circular. - Non-resident sellers should obtain a Tax Clearance Certificate (TCC) confirming CGT has been settled before perfecting title transfer.
Records retention rules
- Retain acquisition contracts, valuation evidence, brokerage notes, and disposal contracts for 6 years from the end of the relevant tax year (general FIRS / SIRS retention rule). - Where rollover relief is claimed, retain documentation of the replacement asset acquisition for the life of the replacement asset plus 6 years.
Rendered from the canonical facts model. General reference only — confirm with a qualified professional before acting.
Section 1 — Quick reference table
| Field | Value |
|---|---|
| Country | Federal Republic of Nigeria |
| Tax | Capital Gains Tax (CGT) |
| Currency | NGN (Nigerian Naira, ₦) |
| Tax year | 1 January to 31 December (companies); fiscal year of the taxpayer (individuals — generally calendar year) |
| Primary legislation (pre-NTA) | Capital Gains Tax Act (CGTA) Cap C1, LFN 2004 |
| Amending legislation | Finance Act 2019; Finance Act 2020; Finance Act 2021; Finance Act 2022; Finance Act 2023 |
| Post-2025 framework | Nigeria Tax Act (NTA) 2025 — CGT consolidated into the general income tax framework (implementing regulations pending) |
| Headline rate | 10% on chargeable gains |
| Tax authority (residents) | Federal Inland Revenue Service (FIRS) for companies and non-residents; relevant State Internal Revenue Service (SIRS) for resident individuals |
| Filing | Lodged with the annual income tax return — CIT (companies) or PIT (individuals) |
| Validated by | Verified by Omolola Fasasi (MB058950) on 2026-06-21 |
| Skill version | 1.0 |
CGT rate at a glance
| Asset class | Rate | Notes |
|---|---|---|
| Real property (land & buildings) | 10% | On chargeable gain (proceeds − cost − allowable expenses) |
| Shares — aggregate disposals ≤ ₦100M in any 12 months | 0% | Exempt (Finance Act 2021) |
| Shares — aggregate disposals > ₦100M in any 12 months, where proceeds NOT reinvested in Nigerian shares within the same year | 10% | Tax base is the chargeable gain only on the portion above ₦100M |
| Business assets (plant, goodwill, intangibles) | 10% | Rollover relief may apply (see §4) |
| Listed shares disposed of via NGX, below threshold | 0% | Pre-Finance Act 2021 blanket exemption now restricted to the ₦100M threshold |
| Non-resident on Nigerian-situs assets | 10% | Buyer / payment agent may be required to withhold |
STOP and do not produce a final CGT figure where any of the following applies:
The following are exempt from CGT:
Statutory exemptions table (CGTA ss. 26-43)
| Exemption | Authority | Notes |
|---|---|---|
| Principal private residence | CGTA s. 36 | Sole or main dwelling, subject to area limit |
| Personal chattels disposed of for ≤ ₦1,000 | CGTA s. 37 | Small disposal exemption |
| Motor vehicles (private passenger cars) | CGTA s. 38 | Not commercial vehicles |
| Gifts to charity / educational / ecclesiastical bodies | CGTA s. 30 | Recipient must be registered |
| Life assurance policy proceeds | CGTA s. 33 | To original policyholder |
| Stocks & bonds — Federal Government, State Government, LGA, statutory corporation securities | CGTA s. 30 | Sovereign and parastatal debt exempt |
| Transfers between spouses | CGTA s. 36 | No-gain-no-loss treatment |
| Compensation for personal injury | CGTA s. 35 | Restricted to genuine injury awards |
| Diplomatic missions | CGTA s. 39 | Reciprocal basis |
Mr Adewale, a Lagos-resident individual, sold a commercial property in Ikeja on 15 June 2025. The property was acquired in 2018.
Example A computation table
| Line item | Amount (₦) |
|---|---|
| Disposal proceeds | 250,000,000 |
| Less: Incidental costs of disposal (legal 1.5%, agent 5%) | (16,250,000) |
| Net proceeds | 233,750,000 |
| Less: Acquisition cost (2018) | (120,000,000) |
| Less: Incidental costs of acquisition (stamp duty, legal) | (6,000,000) |
| Less: Enhancement expenditure (extension, 2021) | (25,000,000) |
| Chargeable gain | 82,750,000 |
| CGT at 10% | 8,275,000 |
The CGT of ₦8,275,000 is reported alongside Mr Adewale's PIT return for 2025 to the Lagos State Internal Revenue Service. Routine repairs incurred over the holding period are NOT deductible.
Mrs Okonkwo disposed of equity holdings during 2025 as follows:
Example B disposals table
| Disposal | Date | Proceeds (₦) | Cost (₦) |
|---|---|---|---|
| NGX-listed Co. A shares | March 2025 | 60,000,000 | 25,000,000 |
| NGX-listed Co. B shares | August 2025 | 85,000,000 | 40,000,000 |
| Unlisted Co. C shares | November 2025 | 40,000,000 | 30,000,000 |
| Aggregate proceeds (12-month window) | 185,000,000 |
Aggregate share-disposal proceeds in 2025 exceed ₦100M. The portion above the threshold is ₦85,000,000.
Mrs Okonkwo did not reinvest in any Nigerian company shares during 2025. The taxable portion of the gain is computed by apportioning the total chargeable gain to the residual proceeds above the threshold:
Example B apportionment table
| Line item | Amount (₦) |
|---|---|
| Total proceeds | 185,000,000 |
| Total cost basis | 95,000,000 |
| Total chargeable gain | 90,000,000 |
| Apportioned to residual above ₦100M (85,000,000 / 185,000,000 × 90,000,000) | 41,351,351 |
| CGT at 10% | 4,135,135 |
The CGT is reported with the 2025 PIT return. If Mrs Okonkwo had reinvested ≥ ₦85M into Nigerian shares within 2025, the residual gain would be exempt.
Conservative defaults table
| Ambiguity | Default |
|---|---|
| Unknown acquisition cost | STOP — cannot compute gain |
| Acquisition by gift or inheritance with no valuation | Obtain probate / market valuation; if unavailable, STOP |
| Unknown whether the ₦100M share threshold is breached in aggregate | Assume breached → compute at 10% conservatively, refund position later if portfolio aggregation confirms exemption |
| Unknown whether reinvestment in Nigerian shares occurred within the tax year | Assume no reinvestment → tax the residual |
| Unknown whether parties are connected | Treat as connected → apply market value rule |
| Routine repair vs enhancement expenditure ambiguous | Treat as routine repair → NOT deductible |
| Disposal post NTA 2025 commencement, regulations pending | Compute under CGTA framework; flag for review under NTA implementing regulations |
| Cross-border disposal with possible treaty relief | STOP — refer to specialist treaty review |
| PPR claimed but property was let or had non-residential use | Restrict PPR proportionally; conservative default → no PPR |
| Non-resident disposal where withholding obligation unclear | Assume withholding applies; remit 10% to FIRS pending clarification |
End of Skill — Nigeria CGT v1.0
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