Capital Gains Tax collections surged to N522bn in 2025, representing an 869 percent performance against target, driven largely by divestments in Nigeria’s upstream oil and gas sector.
The figures were disclosed by Amina Ado, Executive Director for Government and Large Taxpayers at the Nigeria Revenue Service, during the agency’s Management Retreat in Abuja. Data presented showed that CGT revenue rose from N52bn in 2024 to N522bn in 2025, a year on year increase of N470bn or about 903.8 percent. The outturn significantly exceeded the N60bn target set for the year.
According to the Service, the spike was primarily due to asset sales and restructuring by upstream oil and gas firms. “The performance rate Jan to Dec for CGT is 869 percent. High CGT was due to divestments by upstream oil and gas firms,” the presentation noted.
Capital Gains Tax in Nigeria applies to profits realised from the disposal of assets such as land, buildings, shares, and other investment property. Recent reforms have aligned CGT for companies with the standard Company Income Tax rate of 30 percent, up from 10 percent. For individuals, capital gains are taxed according to their applicable income tax bands.
The Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, Taiwo Oyedele, said the changes would strengthen company valuations and deliver long term economic benefits. Speaking at the Nigerian Economic Summit, he explained that small businesses and low income earners would remain exempt, while investors selling shares worth up to N150m annually would not pay CGT.
However, the Association of Securities Dealing Houses of Nigeria has urged a review of the policy, citing concerns about investor confidence and market stability.
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