The introduction of a new 30 percent Capital Gains Tax (CGT) under the Nigerian Tax Act 2025 has stirred widespread reactions across the country’s corporate sector.
The updated guidelines set specific thresholds aimed at easing the burden on smaller transactions. For example, a N150 million threshold now applies to the sale of shares in Nigerian companies. In practical terms, if the total sale value in a year is below N150 million and total gains from asset sales are under N10 million, the company will be exempt from CGT.
While analysts continue to debate the broader economic implications, the new policy marks one of the most significant shifts in Nigeria’s tax landscape in recent years raising questions about its potential effects on investment flows, mergers, and corporate restructuring.
Under the revised CGT framework, firms that record annual share sales below ₦150 million and total asset gains under ₦10 million are exempt. However, larger corporates and listed entities are expected to bear the brunt of the 30 percent levy on qualifying capital gains prompting many to seek lawful, strategic ways to minimize exposure.
Experts suggest several compliance-driven approaches. One is transaction timing, spreading asset disposals across fiscal years to stay within exemption limits. Another is corporate restructuring, where businesses can utilize holding companies or special purpose vehicles (SPVs) to manage equity transfers more efficiently. Companies can also explore intragroup transactions, which, when properly documented and justified, may qualify for deferral or reduced tax exposure.
Tax professionals further advise that organizations take advantage of loss offsets, allowing capital losses from previous years to reduce taxable gains. Engaging in asset revaluation or merger-based consolidations can also help reposition assets under less taxable categories, provided such moves meet the Federal Inland Revenue Service (FIRS) compliance requirements.
Ultimately, experts warn that aggressive tax avoidance could trigger audits and penalties, but strategic tax planning, transparency, and expert advisory remain legitimate tools for navigating the new CGT regime. For Nigeria’s corporate sector, the key to surviving the 30 percent tax lies not in evasion, but in precision.
Source: Business Day
