Nigeria’s 30% Capital Gains Tax To Reshape Investments

Nigeria’s new 30 per cent Capital Gains Tax (CGT) rate is set to change how investors plan transactions involving Nigerian assets, particularly cross-border deals.

The reforms took effect with the Nigeria Tax Act (NTA) on January 1, 2026. According to PwC Nigeria, the law increased the CGT rate for companies from 10 per cent to 30 per cent and expanded the rules covering indirect transfers of shares and interests in Nigerian companies and assets.

Under the new Nigeria Capital Gains Tax regime, selling a foreign company in places such as London, Dubai, Amsterdam or Johannesburg could trigger Nigerian tax consequences even without a direct sale of Nigerian shares.

The NTA provides that gains made by non-residents from disposing of chargeable assets may face Nigerian tax where those assets are located, or deemed to be located, in Nigeria. Foreign shares or similar interests may also fall within the rules if more than 50 per cent of their value comes directly or indirectly from Nigerian assets during the 365 days before disposal.

PwC highlighted uncertainty over whether this 50 per cent threshold must always apply or whether certain ownership changes could independently trigger CGT. This issue could have major consequences for mergers, acquisitions, restructuring and cross-border transactions.

Nigeria now has the highest headline CGT rate among the major African economies reviewed by PwC, compared with 21.6 per cent in South Africa, 20 per cent in Morocco, 15 per cent in Kenya and 25 per cent in Ghana.

The Nigeria Capital Gains Tax reforms also leave questions around Development Levy, capital losses, operating losses, share cost bases and valuation methods. PwC said further regulations or administrative guidance may be needed to provide certainty.

The consultancy advised investors to pay closer attention to tax due diligence, valuation and transaction planning, while also considering exemptions, reinvestment reliefs and other available incentives.

Do you think the new CGT regime will encourage more careful investment planning or discourage foreign investment in Nigeria?