Capital Gains Tax Triples,and Investors Flinch
Nigeria’s 2025 tax overhaul just served up its first real jolt: Capital Gains Tax (CGT) on company assets will leap from 10 % to 30 % come January 2026, a move designed to align CGT with Companies Income Tax and plug revenue gaps.
The Details
According to a report by Punch, the hike is part of a sweeping reform package that slashes more than 60 levies down to under 10 but raises CGT for corporate entities to generate heftier returns for the Treasury. Economists warn the steeper rate could "suppress equity valuations" on the Nigerian Exchange and make frontier-market rivals look more attractive.
Finance ministry officials counter that the change levels the playing field, arguing the previous 10 % rate created an arbitrage against the 30 % Companies Income Tax. "We’re closing loopholes, not the investment door," one official told Punch.
Why It Matters
The reaction was swift: portfolio managers say the higher CGT pares down net gains, driving up required hurdle rates for foreign inflows. With the naira already volatile, the tax bump adds another layer of risk pricing to Nigerian assets. Whether the broader reform package, promising simpler rules and stronger dispute-resolution via a new Office of the Tax Ombud, can offset that concern remains the trillion-naira question.
Around the Tax World
• Meet the Tax Ombud. A brand-new Office of the Tax Ombud will mediate disputes, giving taxpayers a quicker, non-judicial path for complaints and easing court backlogs (NAN).
• Crypto joins the tax net. From 2026, your Bitcoin gains above ₦800,000 will face a 15 % personal income tax, losses stay untaxed (TechCabal).
• Income-tax refresh. New progressive bands, an ₦800k tax-free threshold, and worldwide-income rules promise fairness, and no, the government won’t raid your bank balance (BusinessDay).
• 60 taxes down to 10. Reformers aim for simplicity while keeping micro-businesses under ₦25 m turnover VAT-free (Business AM Live).
Tax Stat of the Day
₦3.83 trn, the amount shared by federal, state, and local governments in August 2025, buoyed by stronger tax collection efforts (Investors King).
Looking Ahead
All eyes are now on January 1, 2026, when the new CGT rate, crypto rules, and income-tax bands kick in. Expect a flurry of guidance from the Nigeria Revenue Service (Establishment) Act, 2025, before the year wraps.