Nigeria Tax Act, 2025 · NTA s.27(6)–(7), s.28(3)
Carrying a loss forward
A loss is deducted from the same trade that made it, carried forward year after year until it is fully used.
Who this lands on: Companies and individuals in trade, business, profession or vocation.
A loss can only be deducted from the trade or business in which it was incurred, and total loss deductions can never exceed the loss itself (NTA s.27(6)).
For an individual, the loss is deducted as far as possible from the assessable profit of the first year of assessment after the one in which it arose, and in later years until it is fully recouped (NTA s.28(3)).
Losses on digital or virtual assets are ring-fenced: they are deductible only against profits of the digital or virtual asset business (NTA s.27(7)).
So a bad crypto year never shelters shop profits, and a bad shop year never shelters crypto gains.