The Nigerian government has reformed its capital gains tax (CGT) regime to make it more progressive and investment-friendly. Beginning January 1, 2026, the CGT rate will rise from 10% to 30%, unless gains are reinvested in Nigerian listed or unlisted equities. The changes are designed to shield small investors and mobilize more revenue from high-earners and speculative capital.
Stakeholders in the capital markets have raised concerns that the tax hike could reduce foreign investment and weaken stock market performance. However, government officials argue the reforms encourage reinvestment in the domestic economy and level the playing field.
Under the new structure, gains reinvested into eligible local equity will retain the lower 10% rate ensuring that retail and long-term investors benefit. Meanwhile, speculative exits and capital shifts abroad face the higher 30% tax.
Analysts say the success of the reform depends on clear rules, strong enforcement, and maintaining investor confidence amid broader economic reforms.
