Capital gains tax revenue in Nigeria surged by about 429 per cent in December 2025, reaching N12.18 billion, up from N2.30 billion in November, as fresh tax reforms stoked expectations of a higher 30 per cent rate.
Data from a Federation Accounts Allocation Committee (FAAC) document from the January 2026 meeting, obtained by The PUNCH on Thursday, revealed that capital gains tax collections rose by N9.88 billion month on month, reflecting a sharp acceleration in receipts from asset disposals at the end of the year.
In Nigeria, capital gains tax is applied when assets such as land, buildings, shares, business interests, digital assets, or other investment property are sold, transferred, or assigned. The tax ensures that profits from asset appreciation contribute to public revenue, similar to income from business operations or salaries.
The December surge marked one of the strongest month-on-month growth rates among non-oil revenue lines, positioning capital gains tax as a key focus for the Federal Government as it seeks to broaden the tax base amid volatile oil earnings.
Analysts say the spike demonstrates the potential of capital gains taxation as a sustainable revenue source and underscores the impact of the government’s recent reforms in stimulating compliance and collection.
