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The short answer
Under the Nigeria Tax Act 2025, in force from 1 January 2026, gains on shares in Nigerian companies are exempt where total disposal proceeds in any 12 months do not exceed ₦150 million and the gains do not exceed ₦10 million. Above that, individuals' gains are taxed at their personal income tax rates (up to 25%) and companies' at 30%, with relief for proceeds reinvested in Nigerian shares.
Until 2025, gains on Nigerian listed shares were largely outside capital gains tax. The Nigeria Tax Act 2025 changed that: share gains can now be taxed, but with an exemption wide enough to cover most individual investors. This article sets out the rule as published commentary describes it, shows who is likely to pay, and explains the reinvestment relief. It is information, not tax advice.
The exemption: two tests, both must be met
Gains on disposing of shares in Nigerian companies are exempt when, in any 12-month period:
- total disposal proceeds do not exceed ₦150 million, and
- total chargeable gains do not exceed ₦10 million.
Mondaq places these exemptions in Part I of Chapter Eight of the Act. Both conditions apply together: selling ₦100 million of shares at a ₦12 million gain fails the gains test even though proceeds are under ₦150 million.
If you are above the threshold: the rates
| Taxpayer | How gains are taxed | Source |
|---|---|---|
| Individual | Added to other income and taxed at personal income tax rates; the old flat 10% CGT rate is removed. The first ₦800,000 of total income is exempt and the top marginal rate is 25%. | Bloomberg Tax, Feb 2026 |
| Company | Chargeable gains taxed at 30%. | Bloomberg Tax, Feb 2026 |
For an individual, the actual rate on a gain depends on your other income for the year. Our guide to PAYE tax bands for 2026 shows the bands. The Bloomberg Tax commentary also says indexation for inflation is not allowed and reads the Act as not letting a capital loss on one disposal reduce gains on others; confirm the loss rule with the NRS or an adviser before you plan around it.
Reinvestment relief
Mondaq's commentary describes a relief for investors who reinvest: where disposal proceeds are reinvested in the same year of assessment to buy shares in the same or another Nigerian company, CGT applies only to the portion not reinvested. It notes that you will need clear documentary evidence of the reinvestment within the relevant period, such as contract notes and CSCS statements.
How the chargeable gain is apportioned between the reinvested and non-reinvested parts is a detail to confirm with the NRS or a tax adviser.
Worked examples (labelled)
Example 1: a typical individual investor
Example only. In 2026 you sell shares for ₦3,000,000 that cost you ₦2,400,000, a gain of ₦600,000. Proceeds are well under ₦150 million and the gain under ₦10 million, so the gain is exempt.
Example 2: a large disposal
Example only. An individual sells shares for ₦200,000,000 that cost ₦170,000,000, a gain of ₦30,000,000. Both tests are failed, so the gain is chargeable and is added to the person's income for the year, taxed at their personal income tax rates. If they reinvest part of the proceeds in Nigerian shares in the same year of assessment, relief may reduce the chargeable amount as described above.
Example 3: many small sales
Example only. You trade often and your sales add up to ₦160,000,000 over 12 months, with total gains of ₦4,000,000. Proceeds exceed ₦150 million, so the exemption does not apply even though the gains are small. Frequent traders should track total proceeds, not just profit.
Records to keep
- Contract notes for every buy and sell, showing price, quantity and charges.
- CSCS statements showing what you held and when. See how to check your CSCS statement.
- Evidence of any reinvestment, with dates.
- Dividend statements, which are taxed separately; see tax on dividends.
Shares not covered by the exemption
The exemption described in commentary refers to shares in Nigerian companies. Gains on foreign shares, such as US stocks bought through an app, are not covered by that wording; ask the NRS how they are treated for you. Our broader guide to capital gains tax under the 2025 Act covers property and other assets.
How the 12-month window works in practice
Both commentaries describe the thresholds as applying over a 12-month period rather than to a single sale. In practice, that means adding up all your share disposals across the period, including sales through more than one broker or app. Keep a simple running total: date of sale, company, proceeds, cost and gain. If the running proceeds approach ₦150 million, or the running gains approach ₦10 million, take advice before your next sale, because one more disposal can take the whole period outside the exemption.
Companies and investment clubs that hold shares should check how the rules apply to them; the rate for companies is different, as shown above.
Where Pryme fits
Good records make tax questions simpler. A verifiable statement of your Pryme account, created with VerifyDoc.ai, can show when sale proceeds arrived and where money for reinvestment went.
Questions people ask
Do I pay tax when I sell shares in Nigeria?
From 1 January 2026, only if your share disposal proceeds exceed ₦150 million in 12 months or your gains exceed ₦10 million, as commentary on the Nigeria Tax Act 2025 describes.
What is the capital gains tax rate on shares in Nigeria?
For individuals, gains above the exemption are taxed at personal income tax rates up to 25%. For companies, 30%.
Is there CGT on shares if I reinvest?
Commentary says proceeds reinvested in Nigerian shares in the same year of assessment reduce the amount charged. Keep evidence of the reinvestment.
When did capital gains tax on shares start in Nigeria?
The Nigeria Tax Act 2025 took effect on 1 January 2026, according to Bloomberg Tax commentary.
Sources
- Bloomberg Tax: New Nigeria Tax Law Redefines Capital Gains Tax for Individuals, 2 Feb 2026 · accessed Oct 2026
- Mondaq: New Capital Gains Tax Rules for Nigerian M&A Transactions, 13 Nov 2025 · accessed Oct 2026
This article is general information, not financial, legal or tax advice. Products described are provided under the terms on this site and are subject to regulation and eligibility.