Nigeria Inheritance & Gift Tax Guide 2026

Overview — Inheritance and Gift Taxation

Nigeria abolished estate tax (death duties / estate duty) in the 1960s. There is no inheritance tax, estate tax, or gift tax at the federal level. This applies to all transfers — real estate, cash, securities, and personal property — regardless of value or relationship. However, the absence of transfer taxes does not mean the complete absence of tax considerations. Capital gains tax may arise when the beneficiary later disposes of inherited assets, and state-level probate fees apply. Estate administration is governed by the Administration of Estates Law of each state and customary law for certain communities.

No Inheritance Tax

Nigeria has no inheritance tax, estate duty, or death duty. When a person dies, their assets pass to their beneficiaries without any federal inheritance tax liability. The size of the estate, the relationship of the beneficiaries, and the type of assets are irrelevant — no tax is imposed on the transfer at death. This makes Nigeria one of the most favorable jurisdictions in Africa for wealth succession. Some states attempted to reintroduce inheritance taxes in the past, but these were not sustained.

No Gift Tax

Gifts made during a person's lifetime are not subject to gift tax in Nigeria. There are no annual gift exemptions, lifetime gift limits, or reporting requirements for gifts. Cash gifts, securities transfers, real estate gifts, and personal property transfers are all tax-free for the donor and recipient. The only potential charge is stamp duty on the transfer of real estate (typically 2% in Lagos State) and capital gains tax if the donor later dies and the gift is included in the estate for CGT purposes (for gifts made within three years of death).

Probate and Estate Administration

While there is no inheritance tax, beneficiaries must obtain probate (a Grant of Letters of Administration or Probate) from the state High Court to access the deceased's assets. Probate fees vary by state and are based on the value of the estate. In Lagos State, probate fees range from approximately 2% to 5% of the gross estate value. The process involves filing an affidavit of valuation, publishing citations, and obtaining the grant. The executor or administrator is responsible for collecting the deceased's assets, paying debts, and distributing the estate according to the will or intestacy rules.

Capital Gains on Inherited Assets

While inheriting assets is tax-free, the beneficiary's cost base for CGT purposes is the value of the asset at the date of death (not the original cost). When the beneficiary later sells the inherited asset, CGT at 10% applies to the gain from the date-of-death value to the sale proceeds. There is a CGT exemption for the principal private residence. This basis step-up is favorable because it eliminates the pre-death capital gain from taxation.

Succession Laws

Nigeria has a dual succession system: statutory succession (governed by the Administration of Estates Law and the Marriage Act) and customary law succession (applicable to individuals who die intestate and were married under customary law). Under statutory law, the estate is distributed according to the rules of intestacy if there is no will. Under some customary systems (particularly in the East), primogeniture may apply. Making a will is strongly recommended to ensure assets pass according to the testator's wishes. Wills must comply with the Wills Act and should be professionally drafted.

FAQs

Is there any tax on inheriting property in Nigeria?

No. Inheritance is tax-free. The only costs are probate fees (state-level) and stamp duty on property transfer (typically 2%).

Do I need to pay tax on a cash gift from a family member?

No. Cash gifts are not subject to any tax in Nigeria. Neither the donor nor the recipient has any tax liability.

What happens to the CGT when I sell an inherited property?

CGT at 10% applies to the gain from the date-of-death value to the sale proceeds. The pre-death appreciation is not taxed. If the inherited property was your principal residence, the gain may be exempt.

Disclaimer

This guide provides general information about inheritance and gift taxation in Nigeria for the 2026 tax year. Tax laws and succession rules may change. Always consult with a qualified Nigerian legal or tax advisor for advice specific to your situation. InvestmentKit does not provide tax advice.