NRS Sees N522bn Capital Gains Tax Collections

Nigeria’s Capital Gains Tax (CGT) collections hit a record ₦522 billion in 2025, far exceeding expectations and marking an 869% performance against target, according to figures presented by the Nigeria Revenue Service (NRS).

Executive Director for Government and Large Taxpayers, Amina Ado, disclosed the numbers at the NRS Management Retreat in Abuja, noting that collections rose from ₦52 billion in 2024 to ₦522 billion in 2025 — a year-on-year increase of ₦470 billion.

The surge was attributed largely to asset divestments by upstream oil and gas firms, reflecting a wave of restructuring and sales in the sector.

“High CGT was due to divestments by upstream oil and gas firms,” the presentation document stated.

Capital Gains Tax applies to profits from the disposal of assets such as land, buildings, shares, business interests, and digital property.

The sharp rise underscores how asset appreciation and divestments are increasingly contributing to public revenue.

Recent reforms raised the CGT rate for large companies from 10% to 30%, aligning it with the corporate income tax rate. For individuals, gains are taxed at their applicable income tax band.

The government also increased the exemption threshold for share sales in Nigerian companies to ₦150 million annually, provided gains do not exceed ₦10 million. This policy is expected to exempt more than 99% of investors from CGT.

While the Association of Securities Dealing Houses of Nigeria (ASHON) warned that the new tax regime could undermine investor confidence, Presidential Tax Reform Committee Chairman Taiwo Oyedele argued that aligning CGT with corporate tax would boost valuations and yield long-term benefits.

Oyedele clarified that small businesses and low-income earners remain exempt. “If a small business pays zero per cent corporate tax, its capital gains tax is also zero per cent. Likewise, low-income earners exempted from PAYE will pay no capital gains tax,” he said.