In Nigeria, you currently do NOT pay tax on profit from selling shares.

Yes…

Let that sink in.

What Does That Mean?

If you:

• buy a stock at ₦100
• sell it at ₦150

Your profit = ₦50

✓ That ₦50 is NOT taxed (capital gains tax does not apply to listed shares in Nigeria under current rules)

Let Me Explain With a Simple Story

Mama Ngozi buys tomatoes for ₦10,000.

She sells them for ₦15,000.

Her profit is ₦5,000.

Now imagine nobody collects tax from that ₦5,000.

That is exactly how stock profit currently works in Nigeria.

But Wait… Does That Mean No Charges At All?

No.

There are still transaction charges when you sell.

Oya… Relax Let Me Explain

When you sell shares, small fees are deducted.

These include:

1. Brokerage Fee

Paid to your stockbroker for executing the sale.

2. Exchange Fee

Paid to the Nigerian Exchange market.

3. CSCS Fee

Paid to the Central Securities Clearing System for settlement and record keeping.

So What Actually Leaves Your Money?

Not tax…

✓ but transaction costs

Important Exception You Must Know

Dividends Are Taxed

If you earn:

• dividend income from shares

Then:

✓ 10% withholding tax is deducted automatically

Before the money reaches you.

Let Me Be Honest With You

Many people confuse:

• capital gain (selling profit)
• dividend income

They are not the same.

Simple Breakdown

• Selling shares → No tax
• Earning dividends → 10% tax (already deducted)

Final Truth

You don’t pay tax when you sell shares in Nigeria.

✓ You only pay small transaction fees

Let Me Leave You With This

Before worrying about tax, ask yourself:

• Do I understand how I’m making money?
• Is it from price increase or dividends?

Because once you understand that…

Confusion disappears.

Rose Ejituru