Key Capital Gains Tax Exemptions Every Nigerian Should Know
The law provides important exemptions.
- Shares in Nigerian Companies
Gains are exempt if:
- Total proceeds within 12 consecutive months are less than ₦150 million
AND - Chargeable gain does not exceed ₦10 million
OR
- Proceeds are reinvested in shares of Nigerian companies within the same year.
If only part is reinvested, tax applies proportionately to the un-reinvested portion.
- Principal Private Residence
An individual may dispose of their principal dwelling house once in a lifetime without CGT, provided:
- It is not used for commercial purposes
- The adjoining land does not exceed one acre
- Personal Chattels
Tangible movable personal property is exempt if:
- Total proceeds in a year do not exceed ₦5 million or three times the national minimum wage (whichever is higher).
Currency is excluded from this exemption.
- Motor Vehicles
Up to two private vehicles per individual per year are exempt.
- Compensation for Personal Injury or Loss of Employment
Compensation up to ₦50 million is exempt.
Amounts above ₦50 million are taxable on the excess.
The payer must deduct and remit tax where applicable.
Strategic awareness of exemptions prevents unnecessary tax leakage.
At 2GDB Consulting, we ensure clients benefit from all lawful reliefs.
