Capital gains tax collections surge to record high
Capital Gains Tax collections in Nigeria have soared, reaching unprecedented levels. Amina Ado, Executive Director at the Nigeria Revenue Service, highlighted the sharp rise during a recent NRS Management Retreat in Abuja. The increase is largely attributed to asset divestments by upstream oil and gas firms and recent tax policy changes. The new tax regime aims to align capital gains taxation with company income tax rates and introduces exemptions for small businesses and low-income earners.
TLDR
- Capital Gains Tax collections jumped from N52bn in 2024 to N522bn in 2025, a year-on-year increase of N470bn.
- The 2025 collection exceeded the N60bn target, achieving an 869 per cent performance rate.
- The surge was driven by divestments in the upstream oil and gas sector.
- The tax rate for large companies was increased from 10 per cent to 30 per cent, while individuals are taxed at their applicable income tax rate.
- Exemptions apply to small businesses, low-income earners, and investors selling shares worth up to N150m annually.
