Nigerian Government Clarifies New Capital Gains Tax Rules to Protect Small Investors

The Nigerian Presidential Fiscal Policy Tax Reform Committee has released details of the new Capital Gains Tax (CGT) framework aimed at reducing investment risks and safeguarding small investors. The reforms include a revised framework with a progressive tax rate ranging from 0-30%, allowing deductions for capital losses, and exempting small institutional investors.

The changes will reset the cost base of existing investments to market prices by December 31, 2025. Investors and traders are expected to adopt a self-assessment compliance model.

The new rules will take effect from January 1, 2026, offering exemptions and relief to low-income earners and small businesses.