E-SERVICE · INSTRUMENTS
Stamp duty
Stamp duty is charged on written instruments, not on transactions. The State stamps instruments executed between individuals; the Federal Inland Revenue Service stamps those where a company is a party. An unstamped instrument is not void — but it cannot be given in evidence.
What stamp duty is and who charges it
Stamp duty is a charge on documents. The Stamp Duties Act lists the instruments that are dutiable and fixes, for each, either a flat amount or a rate applied to the value the instrument carries. It is one of the oldest revenue heads in Nigerian law and one of the most misunderstood, because people assume it attaches to the transaction rather than to the paper that records it.
Section 4(2) of the Act divides competence. Where all the parties to an instrument are individuals, the State in which the instrument is executed collects the duty. Where any party is a company, the Federal Inland Revenue Service collects. A tenancy agreement between two individuals is stamped here; a lease between an individual and a limited company is stamped by the FIRS.
The consequence of not stamping is procedural but serious: section 22 of the Act provides that an instrument which is not duly stamped may not be given in evidence in civil proceedings, nor acted upon by any public officer. A tenancy agreement you cannot produce in court is worth very little the day you need it, and a deed of assignment that the land registry will not accept cannot perfect your title.
Duty on common instruments
| Instrument | Basis of charge | Rate or amount | Time limit | Stamped by |
|---|---|---|---|---|
| Tenancy or lease under 7 years | Annual rent | 0.78% of annual rent | 30 days from execution | State (individuals only) |
| Lease of 7 to 21 years | Annual rent | 3% of annual rent | 30 days from execution | State (individuals only) |
| Lease over 21 years | Annual rent | 6% of annual rent | 30 days from execution | State (individuals only) |
| Deed of assignment / conveyance on sale | Consideration | 1.5% of consideration | 30 days from execution | State (individuals only) |
| Deed of gift | Value of property | 1.5% of value | 30 days from execution | State (individuals only) |
| Deed of mortgage | Secured sum | 0.375% of the sum secured | 30 days from execution | State (individuals only) |
| Power of attorney | Fixed | ₦1,000 | 30 days from execution | State (individuals only) |
| Deed of release or surrender | Fixed | ₦1,000 | 30 days from execution | State (individuals only) |
| Agreement or memorandum under hand | Fixed | ₦500 | 30 days from execution | State (individuals only) |
| Guarantee or indemnity | Fixed | ₦1,000 | 30 days from execution | State (individuals only) |
| Sworn declaration or affidavit | Fixed | ₦500 | On swearing | State |
| Partnership deed | Capital contributed | 1% of capital | 30 days from execution | State (individuals only) |
Getting an instrument stamped
Execute the instrument
Duty attaches from the date of execution, so the thirty-day clock starts when the last party signs, not when the transaction was agreed.
Confirm competence
If every party is an individual, the State stamps it. If any party is a company, take it to the FIRS. The portal asks this question first and will tell you if you are in the wrong place.
Upload the instrument and supporting papers
A scan or clear photograph of every page, plus identification for each party and evidence of the value on which duty is computed.
Receive the assessment of duty
The duty is computed and a payment reference generated against revenue head 11010010 to 11010013. Adjudication, where the correct duty is genuinely uncertain, takes a further three working days.
Pay the duty
Through any accredited channel. Duty is payable on the instrument, not per party — one payment stamps the document.
Collect the stamped instrument
An electronic stamp certificate bearing a verification code is issued to your account, and the physical instrument is embossed at the stamp duties desk at Revenue House or any area revenue office.
Documents required
- The original executed instrument, and one copy for each party.
- Valid identification for every party — NIN slip, passport or driver’s licence.
- Taxpayer Identification Number of each party.
- Evidence of the consideration or annual rent stated in the instrument.
- For land instruments, the certificate of occupancy or evidence of title of the transferor.
- A survey plan, where the instrument relates to land.
- Evidence of payment of any capital gains tax due on the disposal.
Late stamping and its consequences
An instrument stamped after thirty days attracts a penalty and interest in addition to the duty. Late stamping is always possible — the instrument does not become permanently unstampable — but it becomes more expensive the longer it is left.
An unstamped instrument may not be given in evidence in civil proceedings, may not be registered at the land registry, and may not be acted upon by a public officer. Perfecting a title on an unstamped deed is not possible.
A person who executes an instrument liable to duty without stamping it, with intent to evade the duty, commits an offence under the Stamp Duties Act.
Stamp an instrument
Five working days from a complete submission, and an electronic stamp certificate that any registry can verify.