October 6, 2025/CSL Research
Following the ongoing discussions around the new capital gains tax (CGT) regime and its anticipated implementation by January 2026, below are few rising questions and answers to guide appropriately:
1) What is capital gains tax (CGT) on equities in Nigeria?
Capital Gains Tax (CGT) is a tax charged on profits (gains) realized from the disposal or sale of shares or other equity instruments. Under the new regime, CGT ensures that investors who profit from rising share prices contribute to public revenue.
2) Which instruments and transactions are within the scope of CGT for equities?
CGT applies to:
• Listed and unlisted shares, stocks, and equity securities.
• Indirect share transfers (selling shares in a foreign company that owns Nigerian assets).
• Digital and private equity transactions.
• Mergers and acquisitions where shares are exchanged or disposed.
3) How does CGT on stock differ from other taxes on equity (e.g., stamp duty, corporate tax on dividends)?
• Stamp duty applies to documentation of share transfers, not profits.
• Corporate tax on dividends applies to company earnings distributed to shareholders.
• CGT, by contrast, applies only when shares are sold for a profit i.e., the difference between sale price and purchase price.
Please click the link to read the complete report: CSL Flashnote – Capital Gains Tax_What You Should Know.pdf
