FG Merges Capital Gains Tax with Corporate Tax

The federal government has scrapped the 10% capital gains tax and merged it with the corporate income tax under the newly established Nigerian Tax Act, which takes effect in January 2026.

According to the revised law, the corporate income tax remains at 30% for all companies, excluding small businesses with an annual turnover below ₦50 million and fixed assets not exceeding ₦250 million, who will continue to pay zero tax.

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The Act excludes professional service providers from small business classification and introduces a minimum effective tax rate of 15% for companies with turnover above ₦20 billion or those part of multinational groups.

Earlier proposals had suggested lowering the CIT rate to encourage investment, but the current framework retains the 30% rate while removing separate capital gains taxation.