The introduction of a 30% capital gains tax (CGT) in Nigeria’s 2025 Tax Act has sparked significant debate among the nation’s business circles.
This revised CGT regulation introduces clear exemption parameters, including an annual threshold of N150 million on profits realized from the sale of shares in Nigerian companies. Specifically, entities with total share sale revenues below N150 million and capital gains from asset disposals under N10 million annually are exempt from this tax obligation.
While the headline CGT rate adjustment is notable, the exemption limits are poised to influence how businesses approach investment decisions and financial management across Nigeria. Much like how entrepreneurs in international markets might restructure their holdings to minimize tax liabilities, Nigerian enterprises are likely to revise their asset sale plans to remain within these exemption boundaries, thereby enhancing their net gains.