Skip to main content
Popular Press
Contractual Option Interests and Capital Gains Tax in Nigeria
Lens (2015)
  • Dr Obayemi K Olumide, Lagos State University
  • Oluwaseun Viyon Ojo, Lagos State University
  • Tobi Michael Babalola, Lagos State University

Capital gains are the profits realized from the sale of chargeable assets at a price which exceeds and is higher than the purchase price, and so, when a capital asset is sold, the difference between the cost price (purchase price, including acquisition costs) and the sales price (selling costs) is a capital gain or a capital loss, because a taxpayer realizes a capital gain if sales price is higher than cost of sale, while the reverse is the case for a capital loss. While substantial revenue can be realized from capital gains tax (CGT), there are challenges facing CGT in Nigeria which include;Poor collection of primary data such as original cost of land, improper valuation of land, and lack of comprehensive taxation of equities.Nevertheless, CGTs are triggered only when an asset is realized, not while it is held by an investor, and so, an investor can own shares that appreciate every year, but the investor does not incur CGT on the shares until they are sold

  • Option Interests,
  • Capital Gains Tax
Publication Date
Summer August 10, 2015
Publisher Statement
It is insightful and must read for all.
Citation Information
Dr Obayemi K Olumide, Oluwaseun Viyon Ojo and Tobi Michael Babalola. "Contractual Option Interests and Capital Gains Tax in Nigeria" Lens (2015)
Available at: