Economy
What is Capital Gains Taxation and How to Optimize it?
If you have ever traded any securities on the capital markets, chances are that you have paid capital gains taxes before, provided the country of your residence levies such taxes.
Capital gains taxes are levied on the profit generated by buying and selling a particular asset or financial security.
For example, if an investor buys 10 Apple stock for $200 per share and then sells the entire investment for $220 per share, the taxable profit is $200.
Taxes on FX gains are levied at different rates, depending on the length of the holding period of the investment. Long-term capital gains taxes are levied after at least 12 months of holding an asset, while anything less is treated as a short-term capital gain.
In order to better understand how capital gains taxes work and how to optimize your strategies against them, we can look at several examples below.
Example 1 – Long-term capital gains tax
Long-term capital gains taxes in the United States are levied at a rate of 0%, 15%, or 20%, based on income levels and filing status.
Typically, long-term capital gains taxes are levied on asset sales after at least 12 months from purchase. Therefore, if an investor sells an asset 2 years after purchase, the profit will be treated as a long-term capital gain and taxed accordingly.
In other countries, long-term capital gains may have a flat tax rate. For instance, France upholds a long-term capital gains tax of 30%, regardless of the type of instrument.
Example 2 – Short-term capital gains tax
If we look at an example of short-term capital gains taxation, we can see that short-term gains are much easier in terms of tax handling, particularly in the United States, where short-term capital gains are taxed at the ordinary federal and state income tax rates.
For example, if an investor buys $100,000 worth of shares and sells them at a 10% profit in 6 months, the $10,000 difference would be taxable at a rate of 22%, assuming the investor has no other sources of income.
In general, the federal taxes levied on short-term capital gains range from 10% to 37%, with an additional state tax based on place of residence.
Are capital gains taxes universal?
Similarly to any other type of tax levied by governments, capital gains taxes can differ considerably based on the jurisdiction where you reside.
For example, short-term capital gains taxes in the United States are charged at the ordinary income levels, which means that the taxes on short-term capital gains are levied at rates between 10% on the lower end and 37% on the higher end.
On the other hand, a number of countries do not charge capital gains taxes at all. Some such jurisdictions include: Switzerland, Singapore, the UAE, Monaco, Malaysia, Belgium, New Zealand, and more.
In most cases capital gains taxes are levied at income tax levels, while in some cases, they are entirely separate and taxed at a separate, but smaller, rate.
Optimizing your capital gains tax
A key difference between capital gains and other taxes is that capital gains taxes can be optimized, leading to a smaller tax burden overall.
There are several ways of optimizing your capital gains taxes, especially if you reside in the United States and have a SSN, as a number of tax-advantaged investment accounts are available to US residents and citizens, such as: The 401(k), Roth IRAs and Regular IRAs.
In the United Kingdom, you can choose an Individual Savings Account, or ISA. These accounts allow you to close your investments tax-deferred, meaning you do not have to pay capital gains taxes when using them.
Another strategy you can use is tax-loss harvesting, which is done by selling losing investments to offset taxable capital gains. If losses exceed gains, many jurisdictions allow to carry forward excess losses to future years. However, it is also worth noting that tax-loss harvesting can only be done up to $3,000 in the United States.
Conclusion
Capital gains taxes are levied on the profit generated by buying and selling financial securities and other assets.
The rates of capital gains tax differ considerably between jurisdictions and some countries do not levy capital gains taxes at all.
In general, there are two types of capital gains taxes – Short-term and longterm. In most cases, short-term capital gains are taxed as ordinary income, while long-term capital gains taxes are treated as a distinct subcategory of income tax.
For those seeking to optimize their capital gains taxation to avoid overpaying, they can use strategies, such as tax-loss harvesting up to a certain point, or invest and trade using a IRA or other tax-deferred investment/savings account.
By Adedapo Adesanya
Easing tensions between the US and Iran in the Middle East is expected to offer more respite to the Nigerian economy in the coming months.
Analysts at Comercio Partners noted in a report that there is an increased likelihood of a gradual moderation in inflation from July into the third quarter of 2026.
The analysts opined that the near-term outlook for inflation “has become less tilted to the upside” following the peace deal reached by the warring parties in the Middle East conflict and the sharp decline in global oil prices.
The report read in part: “May inflation data showed that price pressures remain sticky, but the near-term outlook has become less tilted to the upside following the peace deal and the sharp decline in global oil prices.
“Headline inflation rose to 15.93 per cent year-on-year from 15.69 per cent in April, while food inflation climbed to 16.96 per cent and core inflation increased to 16.82 per cent, suggesting that both food and underlying non-food price pressures remain elevated.
“However, the easing in crude oil prices below $85/bbl reduces the risk of a renewed energy-led inflation shock. This is important for Nigeria, where fuel, diesel, transport, logistics, and food distribution costs are key channels through which global energy prices feed into domestic inflation.
“If lower oil prices are sustained and domestic fuel prices remain stable or decline, pressure on transport and production costs should gradually ease.”
It noted that in June, inflation may remain sticky because the pass-through of lower oil prices to consumer prices is unlikely to be immediate.
It added that food prices remain elevated, and core inflation picked up month-on-month in May, indicating that underlying price pressures have not fully faded. According to the National Bureau of Statistics (NBS), the inflation rate on a month-on-month basis was 1.75 per cent, which was 0.39 per cent lower than the rate recorded in April 2026 (2.13 per cent).
“However, the balance of risks has shifted. The likelihood of another sharp energy-driven acceleration has reduced, while the probability of gradual moderation from July into Q3 has improved.”
The analysts said in the report that while the latest CPI data, “still supports a cautious tone across rates and fixed income, as annual headline, food, and core inflation all moved higher in May,” the decline in oil prices gives the Central Bank of Nigeria (CBN) “more room to maintain a wait-and-see stance rather than respond aggressively to external energy-price risks, provided domestic prices begin to reflect the easing in global crude markets.”
Economy
All On Invests $1m in Eja-Ice Nigeria Limited to Strengthen Cold-Chain Infrastructure in Off-Grid Markets
All On, an impact investing company focused on expanding access to renewable energy solutions in Nigeria, has announced a $1 million investment in Eja-Ice Nigeria Limited, a provider of solar-powered refrigeration and cold chain infrastructure.
The investment will support Eja-Ice’s manufacturing and operational scale-up as the company enters its next phase of growth. It is expected to enable the expansion of its cold-chain solutions and improve access to reliable cooling services for households, small businesses, and institutions operating in off-grid and weak-grid environments.
Access to dependable cold storage remains a significant constraint across Nigeria, particularly in coastal and rural communities where limited energy infrastructure contributes to post-harvest losses and income instability for small-scale agro-producers.
By delivering energy-efficient refrigeration systems, Eja-Ice is helping to address these challenges while supporting the preservation of perishable goods and strengthening local value chains.
“All On’s investment in Eja-Ice reflects our approach of supporting solutions that improve energy access while enhancing livelihoods, reducing costs, and enabling businesses to grow. Strengthening cold-chain infrastructure is an important step towards building more resilient local economies and expanding opportunities in underserved markets,” the chief executive of All On, Ms Caroline Eboumbou, commented on the investment.
Eja-Ice’s integrated cold-chain model allows for greater control over product design, operational efficiency, and service delivery, ensuring that its solutions are tailored to the needs of underserved markets. The company’s systems are already supporting micro enterprises, cooperatives, and community-level infrastructure, particularly in areas where reliable electricity remains limited.
Also commenting, the founder and chief executive of Eja-Ice Nigeria Limited, Mr Yusuf Bilesanmi, said, “This capital raise is a huge step forward in our vision to power homes and businesses with products designed, assembled, and optimised right here on the continent. It’s not just about access to electricity—it’s about dignity, productivity, and opportunity for the over 600 million people across sub-Saharan Africa who are still off-grid.”
Through this investment, All On continues to advance its mission of closing Nigeria’s energy access gap by supporting the renewable energy ecosystem and businesses that deliver sustainable, market-driven solutions.
By Aduragbemi Omiyale
Shares of First Holdco Plc worth N45.0 billion issued through a private placement have been listed on the Nigerian Exchange (NGX) Limited.
A circular issued by the Head of Issuer Regulation Department of the NGX Regulation Limited, Mr Godstime Iwenekhai, disclosed that the equities were admitted for trading at the stock market on Monday.
According to the notice, the additional shares brought for listing to rank pari passu with existing shares of the organisation were 1,021,334,544 units.
These stocks were sold to one of the company’s major shareholders at a unit price of N44.06, amounting to N45.0 billion.
The total issued and fully paid-up shares of First Holdco, as a result of this listing, are now 45,475,027,677 ordinary shares of 50 Kobo each.
“Trading licence holders are hereby notified that an additional 1,021,334,544 ordinary shares of 50 Kobo each of First Holdco Plc were on Monday, June 22, 2026, listed on the daily official list of Nigerian Exchange Limited.
“The additional shares listed on NGX arose from the company’s private placement of 1,021,334,544 ordinary shares of 50 Kobo each at N44.06 per share.
“With the listing of the additional shares, the total issued and fully paid-up shares of First Holdco Plc have now increased to 45,475,027,677 ordinary shares of 50 Kobo each from 44,453,693,133 ordinary shares of 50 Kobo each,” the disclosure stated.
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