Capital Gains Tax Calculator

Estimate your CGT liability under the Nigerian Capital Gains Tax Act. The rate is 10% on chargeable gains. NGX-listed shares are exempt.

Asset Type

Sale Proceeds

₦

0500,000,000

Original Acquisition Cost

₦

0500,000,000

Capital Improvement Costs

₦

050,000,000

Disposal Costs (legal, agency fees)

₦

010,000,000

CGT Estimate — 10% Rate

Sale Proceeds

₦30,000,000

Less: Acquisition Cost

₦-15,000,000

Less: Improvement Costs

₦-0

Less: Disposal Costs

₦-0

CGT Liability (10%)

₦-1,500,000

Net Proceeds After CGT₦28,500,000

Chargeable Gain

₦15,000,000

CGT Due

₦1,500,000

Disclaimer

This calculator is for educational and illustrative purposes only. It does not constitute financial, investment, or tax advice. Results are estimates based on the inputs you provide and may not reflect actual returns. Consult a qualified financial advisor before making any investment decisions.

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How Is This Calculated?

CGT = 10% × (Proceeds − Acquisition Cost − Improvements − Disposal Costs)

Where:

ProceedsTotal sale/disposal proceeds received

Acquisition CostOriginal purchase price of the asset

ImprovementsCapital expenditure that enhanced the asset

Disposal CostsLegal fees, agency fees, and other disposal expenses

CGT Rate10% flat rate under the Nigerian Capital Gains Tax Act

Disclaimer: This calculator provides illustrative estimates only. Actual CGT liability depends on specific circumstances, applicable exemptions, and FIRS/SIRS assessment. This is not tax advice — consult a qualified Nigerian tax adviser or chartered accountant.

Frequently Asked Questions

Capital Gains Tax is levied under the Nigerian Capital Gains Tax Act (CGTA) on gains arising from the disposal of assets. The tax is charged at a flat rate of 10% on the chargeable gain (the profit after deducting the original cost, improvement costs, and disposal expenses).

No. Under the Nigerian Capital Gains Tax Act, gains from the disposal of stocks and shares listed on a recognised Nigerian stock exchange (such as the NGX) are specifically exempt from CGT. This is a major incentive for investing in Nigerian equities.

In addition to NGX-listed stocks, other common CGT exemptions include: proceeds from life insurance policies, decorations awarded for valour or gallant conduct, and assets used for diplomatic purposes. There is currently no annual CGT allowance in Nigeria (unlike the UK).

Chargeable Gain = Sale Proceeds − (Original Acquisition Cost + Capital Improvement Costs + Allowable Disposal Costs). CGT = 10% × Chargeable Gain. If the gain is zero or negative (a loss), no CGT is due, but losses cannot currently be offset against gains in Nigeria.

The seller (disposer) of the asset is liable to pay CGT. Returns must be filed with the Federal Inland Revenue Service (FIRS) and the relevant State Internal Revenue Service (SIRS). Failure to file attracts penalties. CGT on property transactions is often collected at the point of registration through state land registries.

No. Stamp duty is a separate levy on the legal documents (instruments) used to transfer assets, charged at different rates. CGT is a tax on the profit made from the disposal. Both may apply to a property transaction.