Do You Pay Tax on Forex Profits in Nigeria?

Risk warning: Tax rules change, and every trader's facts differ. This is education, not tax advice — confirm your position with a licensed Nigerian tax professional.

Forex gains are not automatically tax-free in Nigeria. From 1 January 2026, the Nigeria Tax Act 2025 charges gains that accrue to a person in a year of assessment. It also lists currency other than Nigerian currency as a chargeable asset. This article explains the rule, the rate bands, and the records that protect you.

What the Law Says

The Nigeria Tax Act 2025 (Act No. 7 of 2025) repealed the old Capital Gains Tax Act. It commenced on 1 January 2026.

Section 4 charges income and gains from many sources, including the disposal of money or money instruments. Section 33 charges gains that accrue in a year of assessment.

Section 34 lists chargeable assets, and it includes currency other than Nigerian currency. Section 35 says a disposal includes a sale, transfer, or assignment.

That covers the dollars, pounds, or euros behind your positions. Your naira profit on those positions is a gain on a chargeable asset.

The Act never uses the word "forex". No published guidance names retail forex either. Treat a section number as a pointer, not a final answer.

Public copies of the 2025 tax Acts were disputed during 2026. Confirm the current wording before you rely on a section.

Who Collects The Tax

The Federal Inland Revenue Service is now the Nigeria Revenue Service. For a resident individual, personal income tax sits with the internal revenue service of the state where you live.

A Lagos resident deals with LIRS. An Abuja resident deals with the FCT IRS. Confirm the right office before you file.

Gains Are Not Tax-Free

Traders still repeat that "forex is not taxed in Nigeria". No law, circular, or regulator grants that exemption. The Act gives no general relief for trading or investment gains.

The exemptions in section 162 cover pension funds, retirement schemes, and awards for valour. A retail trading account is not on that list.

The old flat 10% capital gains rate is gone. Chargeable gains now join your total income and follow the bands below.

Read Withdrawal Problems: Why Your Profit May Stay Stuck if a platform ever demands a "tax" before releasing your money. Real tax goes to government, not to a broker's account.

How Gains Are Worked Out

Sections 39 and 40 set the sum. You take the disposal proceeds, subtract what you paid to acquire the asset, then subtract the costs of the disposal itself.

Demo example — not a signal. You open EUR/USD exposure worth ₦500,000 / ~$333 and later close it at ₦650,000 / ~$433. Spread and swap cost ₦20,000 / ~$13. The chargeable gain is about ₦130,000 / ~$87.

Losses reduce the total. A year of small wins and one large loss can leave nothing to tax.

The Fourth Schedule Rates

Section 58 sends an individual's chargeable income to the Fourth Schedule. The bands are progressive:

• First ₦800,000 / ~$533 at 0%.
• Next ₦2,200,000 at 15%.
• Next ₦9,000,000 at 18%.
• Next ₦13,000,000 at 21%.
• Next ₦25,000,000 at 23%.
• Above ₦50,000,000 at 25%.

A trader with small gains can stay inside the 0% band once reliefs apply. The duty to declare does not vanish because the bill is zero.

The Nigeria Tax Administration Act requires every taxable person to file a yearly return, whether or not tax is due.

If You Trade as a Business

The Act does not settle whether a retail trader runs a business or holds an asset. If you trade often, with a written plan and consistent size, the tax office may treat it as a trade.

Then the profit is business income under normal income tax rules. Either way, the gain is not invisible. The label changes the computation, not the duty to report it.

Keep Records From Day One

You cannot prove a gain you never recorded. Keep these from your first deposit:

1. Broker statement — every deposit and withdrawal, with dates.
2. Trade history — export your MT5 history at the end of each month.
3. Bank and wallet records — the naira that moved in and out.
4. A yearly total — gains, losses, spread and swap.
5. Source of funds — proof of where the money came from.

A screenshot on your phone is not enough. Keep a copy offline and in the cloud for at least six years. See Protect Your Account: 2FA, BVN and Login Safety.

What To Do This Month

1. Check your TIN. A Tax Identification Number links to your NIN. Get one if you do not have it.
2. Total the year. Add deposits, withdrawals, and net gain or loss.
3. Compare the bands. See which rate applies to your chargeable income.
4. File on time. The deadline is widely published as 31 March. Confirm the date with your tax authority, not a group chat.
5. Ask a professional. A licensed adviser reads your facts, not a blog post.

Start with Money: Funding and Payments in Nigeria and The 1% Rule.

Test yourself

🕵️ Play Scam Spotter — 12 real-life style messages. Some demand a "tax" before payout. Call each one Safe or Scam in 2 minutes. Free, no signup.

Safer path

1. Learn the math first — Why Most Beginners Lose.
2. Record every trade — The Trading Journal.
3. Start small — How to Start with ₦15,000 / ~$10.
4. Check the platform — How to Verify a Broker's Regulation.

Rate used: ~₦1,500 / $1. Tax bands are quoted in naira from the Act, with a dollar guide only.

Bottom line: Forex gains are chargeable, not invisible. Keep records, know your band, and declare — or explain the gap later.