Capital Gains Tax Nigeria: What You Need to Know

When dealing with capital gains tax Nigeria, the tax levied on profit from selling assets within Nigeria. It’s also referred to as CGT Nigeria. This concept sits inside a broader framework of Nigeria tax law, the collection of statutes governing all taxes in the country and directly links to cryptocurrency tax Nigeria, rules that treat digital assets as taxable property. Understanding how tax residency Nigeria, the residence status that determines tax liability works is crucial for accurate reporting.

capital gains tax Nigeria applies whenever you sell stocks, real estate, or crypto and make a profit. The tax rate is currently a flat 10% on the net gain, after allowable deductions such as acquisition cost and related expenses. If you hold an asset for more than a year, the gain still falls under the same rate—Nigeria does not offer a lower long‑term rate. This simple structure means you only need to calculate the difference between your selling price and the adjusted cost basis, then apply the 10% rate.

Key Factors That Shape Your CGT Liability

First, the type of asset matters. Real estate transactions often include additional stamp duties, while crypto trades are subject to the same CGT rules but may trigger extra reporting under anti‑money‑laundering guidelines. Second, exemptions exist for certain small‑scale gains; for example, gains from the sale of personal belongings below NGN 100,000 are not taxed. Third, the timing of the sale influences when you must file. CGT must be declared in the annual tax return for the fiscal year ending 31 December, and any tax due should be paid by the deadline set by the Federal Inland Revenue Service (FIRS).

Second, you need to understand the interaction between CGT and other tax obligations. If you already pay income tax on dividends or interest, the CGT is calculated separately and added to your overall tax bill. The FIRS provides a consolidated return where you list all income sources, including capital gains, ensuring that the total tax liability is computed correctly.

Third, record‑keeping is non‑negotiable. Keep purchase invoices, brokerage statements, and crypto wallet logs for at least five years. These documents prove your cost basis and help you claim legitimate deductions. Without solid records, you risk overpaying or facing penalties during an audit.

Finally, tax planning can reduce your CGT burden. Strategies include timing the sale to fall in a year with lower overall income, using loss‑making assets to offset gains (known as tax loss harvesting), or relocating your tax residency if you qualify for a treaty that offers reduced rates. Each approach has legal implications, so consulting a tax professional familiar with Nigerian law is advisable.

Below you’ll find a curated set of articles that break down each of these points in depth. From step‑by‑step guides on filing your return to specific crypto tax scenarios, the collection equips you with actionable insights to navigate capital gains tax Nigeria confidently.