Capital Gains? For 99% of Nigerians, It’s a Non-Issue Now
The Big Picture
Nigeria’s brand-new tax playbook is moving the goal posts on Capital Gains Tax (CGT), and almost everyone in the stands just got a free pass. Beginning 1 January 2026, only the country’s biggest earners will feel the pinch, a shift that reformers say makes the system fairer without squeezing everyday investors.
The Details
The progressive makeover was laid out by Presidential Fiscal Policy & Tax Reforms Committee chair Taiwo Oyedele, who told The Nation that “about 99% of individual investors will be outside the CGT net.” Under the Nigeria Tax Act, 2025, annual sale proceeds below ₦150 million, or gains under ₦10 million, are completely exempt. Even bigger deals dodge the tax if the cash is ploughed back into shares of a Nigerian company.
In a follow-up post, Oyedele stressed that the overhaul is “about fairness, efficiency and global best practice, not revenue maximisation,” New Telegraph reports. Instead of the flat 10% levy, gains will now be folded into personal or corporate income tax bands, ranging from 0% to 30%,meaning low-income earners still pay nothing while high rollers shoulder more.
Why It Matters
CGT hauled in less than 2% of total tax receipts last year. Reformers argue the new model removes a headache for retail investors and could even save businesses up to ₦4.5 trillion through lower Companies Income Tax rates and broader VAT credits. Still, capital-market watchers are parsing the fine print to see just how “progressive” progressive gets once the rules kick in.
Around the Tax World
- States, It’s Your Move. Chartered Institute of Taxation of Nigeria president Innocent Chinyere Ohagwa called the Tinubu reforms “a bold initiative to free sub-nationals from over-dependence on oil money,” urging states to automate collections and woo willing taxpayers (BusinessDay).
- Protest Alert. Activist groups TIB and MoTion will hit the streets of Lagos tomorrow, demanding a rollback of what they label “oppressive tax reforms” alongside an end to forced evictions (Guardian Nigeria).
- FIRS vs. Binance. A federal court will rule on 12 November whether the tax agency can serve crypto exchange FIRS a ₦81 billion claim by substituted service, another high-profile test of digital-economy enforcement (Nairametrics).
Tax Stat of the Day
₦150 million, the annual sale-proceeds ceiling below which capital gains are entirely tax-free under the new CGT rules.
Looking Ahead
All eyes now turn to the Lagos protests tomorrow and the November 12 Binance hearing, while investors prepare for the CGT switch-over on New Year’s Day 2026.