Most Nigerians associate tax strictly with salary (PAYE). However, one of the most misunderstood areas of taxation in Nigeria is Capital Gains Tax (CGT).
Capital Gains Tax applies when a person disposes of an asset and makes a profit.
A simple example:
If you buy land for ₦5 million and later sell it for ₦8 million, your gain is ₦3 million. The tax is applied on the ₦3 million profit — not on the ₦8 million sale price.
This profit is legally referred to as a Chargeable Gain.
What Assets Are Covered?
Under the law, almost all forms of property qualify as chargeable assets, including:
- Land and buildings
- Shares in companies
- Digital or virtual assets (including crypto)
- Foreign currency
- Patents, trademarks, copyrights
- Business goodwill
- Rights, options, and debts
Importantly, the asset may be located inside or outside Nigeria.
If you are resident in Nigeria or the asset has a sufficient connection to Nigeria, it may fall within the tax net.
This is what the law refers to as ascertainment of chargeable gains — determining what portion of your profit is taxable.
Why This Matters
Many investors and entrepreneurs structure transactions without understanding CGT exposure. This often results in:
- Overpayment of tax
- Underpayment penalties
- Regulatory disputes
- Poor reinvestment planning
At 2GDB Consulting, we help individuals and companies understand their exposure before transactions are concluded — not after compliance issues arise.
If you are planning to sell property, shares, business assets, or digital investments, this conversation is necessary.
