Nigerian Capital Gains Tax (CGT) is 10% on the profit from selling assets. Exempt assets include: primary residence (owner-occupied 2+ years), Nigerian stocks, government bonds, and life insurance. Taxable assets include: investment property, commercial real estate, cryptocurrency, art, and foreign stocks. CGT must be paid within 30 days of disposal.
Capital Gains Tax in Nigeria
Understand when you pay CGT, what's exempt, and how to calculate your liability
How much is capital gains tax in Nigeria?
Capital Gains Tax in Nigeria is 10% of the profit (gain) made from selling an asset. The gain is calculated as: Selling Price - Purchase Price - Allowable Costs. Primary residences and Nigerian stocks are exempt. CGT must be paid within 30 days of the sale.
What is Capital Gains Tax?
Capital Gains Tax (CGT) is a tax on the profit you make when you sell or dispose of an asset that has increased in value. In Nigeria, CGT is charged at a flat rate of 10% and is governed by the Capital Gains Tax Act.
CGT Formula
Tax = (Selling Price - Purchase Price - Costs) × 10%
CGT-Exempt Assets
- Primary Residence
Exempt if owner-occupied for at least 2 years
- Stocks & Shares
Fully exempt to encourage capital market investment
- Government Bonds
All government securities exempt from CGT
- Unit Trusts
Gains from collective investment schemes exempt
- Life Insurance Proceeds
Not considered capital gain
- Gifts to Charity
No CGT on donations to registered charities
CGT-Taxable Assets
- Investment Property
Selling rental property or land
- Commercial Real Estate
Office buildings, shops, warehouses
- Cryptocurrency
Bitcoin, Ethereum, other digital assets
- Art & Collectibles
Paintings, jewelry, antiques
- Business Assets
Machinery, equipment, goodwill
- Foreign Stocks
US stocks, UK shares (not Nigerian listed)
Example: CGT on Property Sale
Selling Investment Property
Special CGT Situations
Primary Residence Rollover
If you sell your home and buy another within 12 months, CGT can be deferred on the portion reinvested in the new property.
Cryptocurrency
Crypto gains are taxable. Each disposal (sell, swap, spend) triggers CGT. Keep detailed records of all transactions.
Business Goodwill
When selling a business, goodwill (the value above physical assets) is subject to CGT at 10%.
Depreciating Assets
Cars and most personal items typically don't attract CGT as they usually depreciate rather than appreciate.
Frequently Asked Questions
What is the capital gains tax rate in Nigeria?
Capital gains in Nigeria are taxed at a flat rate of 10% on the net gain (selling price minus purchase price and allowable expenses).
Is selling my house subject to capital gains tax?
No, if it's your primary residence, the sale is exempt from CGT. However, investment properties, second homes, and commercial real estate are taxable.
Are stock gains taxable in Nigeria?
No. Gains from selling shares on the Nigerian Stock Exchange are exempt from capital gains tax to encourage stock market participation.
How do I calculate my capital gain?
Capital Gain = Selling Price - (Purchase Price + Improvement Costs + Transaction Costs). The 10% tax applies to this net gain.
When must CGT be paid?
CGT should be paid within 30 days of disposal. Late payment attracts 10% penalty plus 21% annual interest.
Track Your Investment Gains
KeepAm helps you track asset purchases and calculate potential CGT