The implementation of the Nigeria Tax Act (NTA) 2026 marks a significant shift in the nation’s fiscal policy, particularly for those managing investment portfolios. For decades, Capital Gains Tax (CGT) in Nigeria was governed by a relatively simple 10% flat rate. Under the new 2026 regime, this landscape has been fundamentally restructured. Capital gains are no longer treated as a separate, flat-rate category but are now merged with an individual’s Personal Income Tax (PIT) and taxed at progressive marginal rates reaching up to 25%.
While this change may initially seem like a higher tax burden for high-net-worth individuals and active traders, the 2026 framework introduces a vital safe harbor for stock market investors. Understanding the nuances of these exemptions and the mechanics of the PIT Merge is essential for any investor looking to maintain a tax-efficient exit strategy.
The most significant protection for investors in the NTA 2026 is the statutory exemption for share disposals. Under the new rules, gains from the sale of shares and stocks in Nigerian companies remain 100% tax-exempt provided they meet specific criteria. This exemption is designed to protect retail investors while ensuring that high-volume institutional or high-net-worth trades contribute more equitably to the tax base.
The Exemption Rule
Under the NTA 2026, capital gains on shares are not chargeable to tax if the investor meets specific statutory safe harbors. Specifically, gains are not chargeable if:
The total disposal proceeds do not exceed 150 Million Naira within a rolling 12-month period.
The total chargeable gains from such disposals do not exceed 10 Million Naira.
Contextual Example: The "Proceeds vs. Gains" Scenario
To understand how this works in practice, consider two investors, Mr. A and Ms. B:
Investor Mr. A: Sells shares for a total of 140 Million Naira (Proceeds). Even if his profit (Gain) on this sale is 50 Million Naira, he pays Zero Capital Gains Tax because his total proceeds are below the 150 Million Naira threshold.
Investor Ms. B: Sells shares for 200 Million Naira (Proceeds). Because she crossed the 150 Million Naira limit, we must now look at her gains. If her profit on that sale was only 8 Million Naira, she still pays Zero Capital Gains Tax because her total gains remained under the 10 Million Naira threshold.
The Result: Tax only becomes due if an investor breaches both the 150 Million Naira proceeds limit and the 10 Million Naira gain limit.
If your investment activities stay within these limits, your returns remain protected from the progressive tax bands. However, once these thresholds are breached, the gain is merged with your regular income—such as your salary or business profits—and taxed at your top marginal rate.
The fundamental shift in 2026 is the abolition of the flat 10% rate for individuals. Instead, your capital gains are treated as part of your "Aggregate Income." This means if you are already in a high-income bracket due to your professional salary, a taxable capital gain from a stock exit could be taxed at 21%, 23%, or even 25% depending on your total earnings for the year.
However, many investors ask:
If my gains are merged with my income, does that mean the 150 Million Naira exemption is gone?
The answer is No. The exemption acts as a "Gatekeeper." If your transaction stays within the exemption limits, the gain never enters the merger. It is simply ignored for tax purposes. Only when you breach the "Gatekeeper" limits does the merger happen.
Example 1: The "Safe Harbor" (Exemption Active)
Imagine you earn a salary of ₦20,000,000 (putting you in the 21% tax bracket). You sell shares and make a profit of ₦8,000,000 from a total sale of ₦50,000,000.
Status: Because your gain is under ₦10M and your proceeds are under ₦150M, this ₦8M is exempt.
Result: Your tax remains calculated solely on your ₦20M salary. The merger does not happen.
Example 2: The "Merger Trigger" (Exemption Breached)
Now, imagine the same ₦20,000,000 salary, but this time you sell a larger portfolio for ₦160,000,000 and make a ₦40,000,000 profit.
Status: You have breached the ₦150M proceeds limit AND the ₦10M gain limit.
Result: The Merger triggers. Your taxable income for the year is now ₦60,000,000 (₦20M Salary + ₦40M Gain).
The Hit: Because of the merger, that ₦40M gain isn't taxed at 10% anymore; it is taxed at the top progressive bands of 23% and 25%.
A critical feature of the 2026 framework is the ability to offset capital losses. Under the NTA 2026, capital gains and losses are integrated into your aggregate income profile. If an investor sells a set of shares at a loss, that loss can be subtracted from the taxable gains of other disposals within the same period.
This loss recovery is vital because it reduces the combined taxable income that is eventually merged into your Personal Income Tax (PIT) bands. By lowering your "Net Gain," you can effectively stay in a lower tax bracket or even bring your total gains back under the ₦10 Million exemption threshold.
Contextual Example: The "Loss Shield" Strategy
Consider an investor, Mr. Emeka, who had two major trades in 2026:
Trade A (The Win): Sold shares in Company X for a profit of ₦15,000,000.
Trade B (The Loss): Sold shares in Company Y at a loss of ₦6,000,000.
Without Loss Offsetting: If Mr. Emeka only reported his "Win," he would breach the ₦10M gain threshold. The entire ₦15M would be merged with his salary and potentially taxed at 25% (a tax hit of ₦3.75M on that gain).
With Loss Offsetting in TaxMateNG:
Net Gain Calculation: ₦15,000,000 (Gain) – ₦6,000,000 (Loss) = ₦9,000,000 Net Gain.
The Result: Because his Net Gain is now only ₦9M (which is below the ₦10M threshold), the entire amount becomes Tax-Exempt.
Savings: By accurately offsetting his loss, Mr. Emeka saves ₦3.75 Million in taxes.
Most manual calculations only focus on the profits. TaxMateNG automatically prompts you to enter your losses for the year. Our engine then:
Subtracts losses from gains to find your Net Position.
Applies the Gatekeeper Exemption (₦150M/₦10M) to the Net figure.
Only merges the remainder into your PIT bands if the thresholds are still breached.
Why Strategic Planning is Required
The challenge for the modern investor is tracking these moving parts. Manually monitoring a 12-month rolling threshold of 150 Million Naira in proceeds across multiple brokerage accounts is a significant administrative burden. Failing to accurately track these figures can lead to unexpected tax liabilities or, conversely, overpaying tax when you could have claimed an exemption or a loss offset.
TaxMateNG was engineered specifically to solve this technical hurdle. While most basic calculators treat all income as a single pool, TaxMateNG features a dedicated Investor Module built with the 2026 Share Exemption logic. The app provides:
Proceeds Tracking: It automatically monitors your disposal values against the 150 Million Naira statutory limit.
Automated Loss Offsetting: It subtracts your investment losses from your gains before calculating the tax impact.
Marginal Rate Analysis: It shows you exactly how a large capital gain will interact with your other income sources.
In the 2026 tax environment, the difference between a tax-free exit and a 25% tax hit often comes down to precise calculation. TaxMateNG provides the professional-grade logic required to ensure your investment returns are preserved.