Calculate your CGT liability on the disposal of assets in Nigeria. Covers property, shares, and other chargeable assets at the 10% flat rate with allowable deductions.
Nigeria's Capital Gains Tax (CGT) is governed by the Capital Gains Tax Act (CGTA), Cap C1 LFN 2004, as amended by subsequent Finance Acts. The tax applies a flat rate of 10% on gains arising from the disposal of chargeable assets by any person (individual or company) in Nigeria.
A "disposal" occurs when an asset is sold, exchanged, gifted (except to approved charities), or transferred. The gain is calculated as the difference between the disposal consideration (sale price) and the allowable costs — which include the original purchase price, costs of improvements or enhancements, and incidental costs of both acquiring and disposing of the asset (such as legal fees, surveyor fees, and agent commissions).
One of the most significant recent changes came with the Finance Act 2021, which brought gains from the disposal of shares back into the CGT net. Previously, share disposals were exempt. Now, if total proceeds from share transactions exceed ₦100 million within any 12-month period, the gains are subject to the 10% CGT. This was a major development for the Nigerian investment landscape.
Property transactions remain the most common trigger for CGT in Nigeria. When selling land or buildings, the seller is liable for CGT on the gain. In practice, the buyer or their solicitor often withholds the CGT at source and remits it to the Federal Inland Revenue Service (FIRS) before completing the transaction. Obtaining a CGT clearance certificate is typically required before the Governor's consent for property transfers can be processed.
Unlike some jurisdictions, Nigeria does not index the cost base for inflation, nor does it offer reduced rates for long-term holdings. The 10% rate applies regardless of how long the asset was held. There is also no annual exemption threshold for individuals — any gain on a chargeable asset is taxable from the first naira.
Nigeria applies a flat 10% Capital Gains Tax on gains from the disposal of chargeable assets. This applies equally to individuals and companies, and there is no distinction between short-term and long-term gains.
Yes, since the Finance Act 2021. If the total consideration from share disposals exceeds ₦100 million in any 12-month period, the gains are subject to 10% CGT. Transactions below this threshold remain exempt.
You can deduct the original purchase price, any costs of improving or enhancing the asset (not repairs/maintenance), and incidental costs of both acquisition and disposal — including legal fees, agent/broker commissions, stamp duties, and surveyor fees.
CGT must be filed and paid within 30 days of the disposal. For property transactions, the buyer's solicitor often withholds the tax at source. Late payment attracts penalties and interest from FIRS.