Capital Gains Tax Calculator Nigeria

Calculate the 10% CGT due on profits from selling property, shares, or other chargeable assets in Nigeria.

Asset Disposal Details

Sale Price

₦

Original Purchase Price

₦

Improvement Costs

₦

CGT Rate: 10% of chargeable gain (Sale Price − Purchase Price − Improvements)

Capital Gains Tax

₦250,000

Sale Price

₦5,000,000

Purchase Price

₦2,000,000

Improvement Costs

₦500,000

Chargeable Gain

₦2,500,000

Gain (%)

100.0%

CGT (10% of gain)

₦250,000

Net Proceeds After CGT

₦4,750,000

How to Use This Calculator

Enter the sale price of the asset, the original purchase price, and any improvement costs (renovation, upgrades, legal fees at purchase). The calculator deducts purchase and improvement costs from the sale price to find the chargeable gain, then applies the 10% CGT rate.

If the sale price is less than or equal to total costs, there is no chargeable gain and no CGT is due.

The Formula

Chargeable Gain = Sale Price − Purchase Price − Improvement Costs CGT = Chargeable Gain × 10% Net Proceeds = Sale Price − CGT Notes: • Only gains are taxed — losses are not offset against other income • Improvement costs (renovations, upgrades) reduce the gain • Legal fees at purchase may be included in cost base • Primary residence exemption: CGT may not apply to your main home

Nigeria's CGT rate is a flat 10% — one of the lowest capital gains tax rates in Africa. This applies to shares, real estate, plant and machinery, intellectual property, and other chargeable assets.

Example

Scenario: Property Sale

Adeola bought a plot of land in Lekki for ₦2,000,000 in 2018. She built a house on it spending ₦500,000 on improvements. She sold the property in 2025 for ₦5,000,000.

Sale price₦5,000,000

Original purchase price₦2,000,000

Improvement costs₦500,000

Chargeable gain = ₦5M − ₦2M − ₦500K₦2,500,000

CGT = ₦2.5M × 10%₦250,000

Net proceeds₦4,750,000

Adeola pays ₦250,000 in CGT on her ₦2.5 million profit. Without the improvement costs claim, her CGT would have been ₦300,000 — always document all legitimate costs.

CGT Exemptions in Nigeria

Primary residence: A dwelling house that is the taxpayer's main residence throughout the period of ownership may be exempt from CGT.
Government securities: Gains on Federal and State Government bonds and securities are exempt.
Stock exchange transactions: Gains on shares traded on the Nigerian Stock Exchange (NGX) are generally exempt from CGT.
Death and gifts: Assets transferred at death or as gifts to charities may not trigger CGT depending on circumstances.
Small gains: There is no statutory minimum gain below which CGT does not apply — each disposal must be considered individually.

FAQ

CGT applies to chargeable assets including: land and buildings, plant and machinery, goodwill, stocks and shares (except those listed on the NSE), intellectual property rights, and any other assets that constitute capital property. Exempt assets include personal use items, motor vehicles, government bonds, and your primary residence.

CGT is paid by the seller — the person making the capital gain. The tax is assessed on the profit earned from disposing of a chargeable asset. The buyer pays Stamp Duty on property transactions, while the seller pays CGT on the profit.

CGT must be paid to FIRS (for Federal assets) or the State Internal Revenue Service within 30 days of the disposal of the asset. For property transactions, it is often paid before the title documents are transferred. Always confirm the deadline with your tax adviser.

Yes, the statutory CGT rate is 10%. However, enforcement has historically been uneven, particularly for informal real estate transactions. In practice, many property sales do not attract CGT because transactions are not fully disclosed. With FIRS increasing enforcement and digitising records, compliance is growing — it is better to budget for CGT.