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How is an indirect transfer of shares valued for tax?

The transaction becomes taxable in Nigeria if more than 50% of the value of the foreign company being sold is derived from Nigerian assets.

  • Scenario: You are selling a holding company based in Mauritius that is worth ₦80 million. The sale will be taxed in Nigeria if it can be shown that ₦40 million or more of that value comes from its Nigerian operations.