Sticker Shock: Nigeria’s New 30% Capital Gains Tax Sparks Investor Jitters
The Big Picture
Nigeria’s freshly-minted Tax Reform Acts were barely out of the gazette when a new 30% capital-gains tax (CGT) sent tremors through boardrooms. The levy, published on 9 September, is meant to fatten government coffers,but some executives fear it could thin out investment flows.
The Details
The CEO of fuel-marketer 11 PLC warned the hike could “discourage both local and foreign investors,” Nairametrics reports. The new CGT applies to the sale of shares, real estate, and business assets, replacing the prior 10% rate. Finance Ministry officials argue the move simply aligns Nigeria with peer markets and will boost non-oil revenue.
Why It Matters
The reaction was swift. Tax advisers say deals already in the pipeline are being repriced to reflect the bigger tax bite, while private-equity firms are modeling exit scenarios under the tougher regime. “The timing could not be worse,” one analyst told Nairametrics, citing higher interest rates and a weak naira.
Around the Tax World
• All Aboard, or Else. Section 18 of the new Nigerian Tax Act, 2025, drags non-resident shipping and airline operators into the tax net, requiring them to file returns with the Federal Inland Revenue Service (FIRS) or risk penalties (BusinessDay).
• Free-Zone Free Ride Ends. Enterprises in Export Processing Zones will now face corporate tax once they sell into the domestic market, ending decades-old exemptions (BusinessDay’s “Taxing the Untaxed” analysis link).
• Borrow & Grow. Despite a 411 % revenue surge, FIRS chief Zacch Adedeji says Nigeria will “continue to borrow as budgeted,” arguing loans are part of a healthy fiscal mix (TheNiche).
• Political Victory Lap. The Lagos APC hailed the revenue spike as proof President Tinubu’s reforms are working, calling the numbers “record-breaking” (TVCNews).
Tax Stat of the Day
₦3.64 trillion, Nigeria’s take in September 2025, a 411 % jump from May 2023 collections (TheNiche).
Looking Ahead
All eyes are now on the implementing regulations FIRS is expected to release before year-end. Those rules will spell out CGT payment timelines and whether any sweeteners emerge for jittery investors.