Nigeria's Capital Gains Tax Rate Hits 30%, Highest in Africa

Nigeria now holds the highest headline capital gains tax (CGT) rate in Africa at 30%, as reported by PwC Nigeria. This significant increase from the previous 10% for companies is part of the reforms introduced by the Nigeria Tax Act (NTA), effective January 1, 2026.

The reforms broaden the government's taxing rights to include certain offshore transactions involving Nigerian companies and assets. For instance, a sale of a foreign company could trigger tax consequences in Nigeria if it results in a change of ownership of Nigerian assets.

The CGT applies to chargeable gains from the sale of various assets, including equities and digital assets. Stakeholders have expressed concerns regarding the impact of the increased CGT, with reports indicating that N2 trillion was lost from the capital market due to these changes.

PwC's analysis shows Nigeria's CGT rate surpasses those of Ghana (25%), South Africa (21.6%), Morocco (20%), and Kenya (15%). The reforms align capital gains taxation more closely with Nigeria's corporate income tax framework.