Capital Gains Tax Hits Record ₦522bn in 2025
Nigeria recorded an unprecedented ₦522 billion in Capital Gains Tax (CGT) revenue in 2025, marking the highest collection since the tax was introduced and reflecting sweeping fiscal reforms and major asset transactions across key sectors of the economy.
Figures released by the Nigeria Revenue Service (NRS) show that the 2025 performance far exceeded the initial projection of about ₦60 billion for the year. The amount also represents a sharp increase compared to the roughly ₦52 billion generated in 2024, underscoring a dramatic expansion in both compliance and taxable transactions.
Analysts attribute the surge largely to significant divestments in Nigeria’s oil and gas industry, where multinational and indigenous firms concluded high-value asset sales. These transactions triggered substantial capital gains liabilities under existing tax laws, contributing heavily to the record haul.
The increase also coincides with the implementation of the Nigeria Tax Act 2025, which introduced key adjustments to the capital gains framework.
Under the revised structure, the corporate CGT rate was aligned with the company income tax rate, rising from 10 per cent to 30 per cent. For individuals, capital gains are now taxed at applicable income tax rates rather than a flat rate, while new exemption thresholds were introduced to shield small investors and low-income earners.
Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, Taiwo Oyedele, had earlier stated that the reforms were designed to improve fairness, broaden the tax base, and enhance government revenue without overburdening small businesses and retail investors.
However, the new tax measures have sparked debate within the investment community. Some capital market operators have raised concerns that higher CGT rates could dampen investor appetite and trigger volatility in the equities market, particularly if implementation lacks clarity.
Others argue that aligning Nigeria’s capital gains regime with global standards strengthens fiscal sustainability and reduces reliance on borrowing.
Despite the concerns, fiscal authorities maintain that the record collection demonstrates improved tax administration and compliance, as well as the government’s commitment to boosting non-oil revenue streams.
