Investment Income
Tax Calculator
Calculate tax on your Nigerian investment income — dividends, savings interest, fixed deposits, treasury bills, stocks, and capital gains from asset sales.
Your Investment Income
How Investment Income Is Taxed in Nigeria
Investment income in Nigeria is primarily taxed through Withholding Tax (WHT) deducted at source. Under the NTA 2025, dividends, interest, and rental income attract 10% WHT. Capital gains from asset sales are taxed at 10% for individuals. These are not additional taxes — they are advance payments that can be offset against your final income tax liability.
Dividends
Dividends paid by Nigerian companies are subject to 10% WHT, deducted before the dividend reaches your account. This applies to both cash dividends and scrip dividends. For non-residents, the rate may be reduced under double taxation agreements. Dividends received by Nigerian companies from other Nigerian companies where the recipient holds at least 10% of equity are exempt from further CIT.
Interest Income
Interest from savings accounts, fixed deposits, and corporate bonds attracts 10% WHT. However, interest on Federal Government bonds and treasury bills is exempt from WHT for individuals — making T-bills a tax-efficient investment. Interest from foreign sources is taxable for Nigerian residents but may qualify for double taxation relief.
Capital Gains
Under the NTA 2025, capital gains for individuals are taxed at 10% on the net gain (sale proceeds minus cost of acquisition and improvement). For companies, capital gains are now taxed at the CIT rate of 30%. Gains below ₦1 million in a tax year may qualify for the small gains exemption. Gains from disposal of shares in a Nigerian company by a non-resident are subject to 10% CGT.
Investment Income Tax Rates (2026)
NTA 2025Frequently Asked Questions About Investment Income Tax
For most individual investors, yes. The 10% WHT on dividends is generally treated as a final tax. However, if your total income from all sources pushes you into a higher PAYE band, you may owe additional tax when filing your annual return.
Yes. Interest on Federal Government securities — treasury bills, FGN bonds, and FGN savings bonds — is exempt from income tax for individual investors. This makes T-bills one of the most tax-efficient investments available in Nigeria.
Capital gains must be declared in your annual tax return. Calculate the gain as sale proceeds minus original cost minus any improvement costs. File within 90 days of the tax year-end and pay the 10% CGT due along with your return.
Under the NTA 2025, capital losses can be carried forward and offset against future capital gains for up to 4 years. However, capital losses from one asset class cannot be offset against other income types such as salary or business income.
Foreign dividends are taxable as part of your worldwide income if you are a Nigerian tax resident. You can claim a foreign tax credit for any tax already paid in the source country, up to the amount of Nigerian tax payable on that specific income.
Yes. Nigerian banks are required to deduct 10% WHT on all interest payments above ₦100,000 per year. This is deducted at source before the interest is credited to your account. The bank remits the WHT directly to the NRS.
Under the NTA 2025, gains from the disposal of digital assets (including cryptocurrency) are treated as capital gains and taxed at 10% for individuals and 30% for companies. The gain is calculated as disposal proceeds minus acquisition cost.
It depends on the fund structure. Distributions from equity mutual funds that represent dividends attract 10% WHT. Interest distributions also attract 10% WHT. Capital gains from selling your mutual fund units are taxed at the CGT rate.
Keep all contract notes, dividend certificates, bank statements showing interest credits, purchase and sale records for assets, and WHT credit notes. These documents are essential for accurate tax filing and for claiming credits or refunds.
Rental income is subject to 10% WHT (deducted by the tenant if they are a company or government body). Additionally, the net rental income after deducting allowable expenses (maintenance, insurance, depreciation) is included in your taxable income for PAYE purposes.
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