Capital Gains Tax on Nigerian Shares: 2026 Rules for Individual Investors
This educational guide explains the Nigeria Tax Act 2025 rules for individual gains on share disposals, including the thresholds and reinvestment relief.
This article is for general educational purposes only. It does not constitute tax advice. The capital gains tax position for Nigerian shares is subject to legislative change. Always consult a qualified Nigerian tax adviser to confirm the rules that apply to your specific situation before selling shares.
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The Nigeria Tax Act 2025 came into force on 1 January 2026 and replaced the previous capital gains tax framework.
What Is Capital Gains Tax?
Capital gains tax (CGT) applies to chargeable gains arising when an asset is disposed of. Under the Nigeria Tax Act 2025, an individual's chargeable gains are taxed at the individual's personal income tax rates (progressive bands), rather than the previous flat 10% rate.
What Changed on 1 January 2026
The previous capital gains tax framework included a broad exemption for gains on qualifying share disposals. The Nigeria Tax Act 2025 replaced that framework from 1 January 2026. Individual chargeable gains are now taxed at personal income tax rates (progressive bands), subject to the exemptions in the Act.
Exemptions for Individual Share Disposals
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An individual's gains on disposing of shares are exempt where total disposal proceeds are below ₦150 million and chargeable gains do not exceed ₦10 million in any 12 consecutive months. Both conditions apply. Where the proceeds of a share disposal are reinvested in shares of Nigerian companies, the reinvested amount is exempt.
Applying the Rules to a Share Disposal
Whether an individual qualifies for an exemption depends on the total disposal proceeds, the chargeable gains across the relevant 12 consecutive months, and any amount reinvested in shares of Nigerian companies. Confirm how these rules apply to your transaction with a qualified Nigerian tax adviser.
How to Stay Informed of CGT Rule Changes
The applicable outcome depends on an individual's circumstances and transactions across the relevant period. Confirm how the Nigeria Tax Act 2025 applies to you with a qualified Nigerian tax adviser.
Frequently Asked Questions
How are individual gains on Nigerian shares taxed from 1 January 2026?
Individual chargeable gains are taxed at the individual's personal income tax rates (progressive bands), instead of the previous flat 10% rate, unless an exemption applies.
When are an individual's gains on disposing of shares exempt?
The gains are exempt where total disposal proceeds are below ₦150 million and chargeable gains do not exceed ₦10 million in any 12 consecutive months. Where share-disposal proceeds are reinvested in shares of Nigerian companies, the reinvested amount is exempt.
Do I need to declare share sales on my tax return even if exempt from CGT?
Whether share sales must be reported on a tax return depends on your circumstances. Confirm whether and how your share sales must be reported with a qualified Nigerian tax adviser.
How is CGT calculated if it does apply?
For individuals, chargeable gains are taxed at personal income tax rates (progressive bands). This article does not calculate those bands or determine the chargeable gain for a particular transaction. Confirm the calculation with a qualified Nigerian tax adviser.
Are dividends and capital gains taxed differently in Nigeria?
Yes. Dividends and chargeable gains are different tax categories. Under the Nigeria Tax Act 2025, individual chargeable gains are taxed at the individual's personal income tax rates (progressive bands), subject to the share-disposal exemptions described above. Confirm the treatment of each income type with a qualified Nigerian tax adviser.
Important disclaimer. This article is for general information and educational purposes only. It does not constitute tax advice, financial advice, or investment advice. The CGT position for Nigerian listed securities is subject to legislative change. Do not rely on this article as current tax guidance. Always consult a qualified Nigerian tax adviser and verify the current position with FIRS before making any decision to buy, sell, or hold shares. Shares Saver does not provide tax or financial advice.
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