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Capital Gains Tax: what's taxed, what's exempt

3 min read

Selling property, shares, or another asset at a profit can trigger Capital Gains Tax (CGT) — but how it's taxed depends on who's selling, and several common disposals are exempt outright.

Individuals and companies are taxed differently

Yes. Under NTA §28(2)(a)(v)/§58, an individual's chargeable gain is aggregated into their total taxable income and taxed at the same progressive PAYE bands, not a separate flat rate. A company's chargeable gain (§27(1)/§56) is folded into total profits and taxed at the existing 0%/30% Companies Income Tax rate instead.

What's exempt

A dwelling-house used as your principal private residence is fully exempt under §51 (once per lifetime, no minimum-ownership period). Nigerian-company shares are exempt under §34(1)(a) if disposal proceeds are under ₦150,000,000 and the gain is ₦10,000,000 or less, or if the shares were fully reinvested in Nigerian-company shares within the same year, or transferred in a regulated securities-lending transaction.

Put this into practice

Estimate CGT on a real disposal, including the exemption checks, with TaxLane's CGT calculator.

Frequently asked questions

Do individuals and companies pay Capital Gains Tax differently?

Yes. Under NTA §28(2)(a)(v)/§58, an individual's chargeable gain is aggregated into their total taxable income and taxed at the same progressive PAYE bands, not a separate flat rate. A company's chargeable gain (§27(1)/§56) is folded into total profits and taxed at the existing 0%/30% Companies Income Tax rate instead.

Is my property or share sale exempt from Capital Gains Tax?

A dwelling-house used as your principal private residence is fully exempt under §51 (once per lifetime, no minimum-ownership period). Nigerian-company shares are exempt under §34(1)(a) if disposal proceeds are under ₦150,000,000 and the gain is ₦10,000,000 or less, or if the shares were fully reinvested in Nigerian-company shares within the same year, or transferred in a regulated securities-lending transaction.

Is this official tax advice?

No — for guidance only, not tax advice.