Transaction Details
Tiered 0.78% (≤7yr) / 3% (7–21yr) / 6% (>21yr) of annual rent
Stamp Duty
How Stamp Duty Is Calculated
1. Identify the instrument
Stamp duty depends on the type of legal instrument: tenancy/lease agreement, property transfer (conveyance), mortgage, debenture, or share capital issuance.
2. Determine the dutiable value
For leases, use the annual rent. For property transfers, use the purchase price or market value (whichever is higher). For mortgages and debentures, use the loan amount. For share capital, use the value of shares issued.
3. Apply the prescribed rate
Lease rates are tiered by term: 0.78% (≤7yr), 3% (7–21yr), 6% (>21yr). Property transfers pay 1.5%. Mortgages and debentures pay 0.375%. Share capital pays 0.75%.
4. Stamp and file
The duty is paid by affixing adhesive stamps or e-stamps to the instrument. Unstamped instruments may be inadmissible as evidence in court. File with the relevant tax authority (FIRS or state IRS).
Ad Valorem Stamp Duty Rates (Stamp Duties Act)
| Instrument | Rate | Dutiable Value |
|---|---|---|
| Lease / Tenancy (≤ 7 years) | 0.78% | Annual rent |
| Lease / Tenancy (> 7, ≤ 21 years) | 3% | Annual rent |
| Lease / Tenancy (> 21 years) | 6% | Annual rent |
| Property Transfer / Conveyance | 1.5% | Purchase price or market value |
| Mortgage | 0.375% | Loan amount |
| Debenture | 0.375% | Loan amount |
| Share Capital / Issued Shares | 0.75% | Value of shares |
Rates prescribed under the Stamp Duties Act (Cap S8, LFN 2004). Separate fixed duties apply to other instruments (e.g., receipts, cheques, policies).
Frequently Asked Questions
What is stamp duty in Nigeria?
Stamp duty is a tax charged on certain legal instruments and transactions in Nigeria — including tenancy/lease agreements, property transfers, mortgages, debentures, and share capital issuances. It is governed by the Stamp Duties Act (Cap S8, LFN 2004) and administered by the Federal Inland Revenue Service (FIRS) and various state Internal Revenue Services.
What are the stamp duty rates for leases?
Lease/tenancy stamp duty rates depend on the lease term: 0.78% of annual rent for leases up to 7 years, 3% for leases between 7 and 21 years, and 6% for leases exceeding 21 years.
Is stamp duty the same across all states?
Stamp duty on instruments relating to individuals is collected by state governments (through the State Internal Revenue Service), while those relating to companies and corporate entities are collected by the FIRS. The rates prescribed in the Stamp Duties Act apply nationally, but some states may have additional levies or administrative variations.
Does this calculator apply to electronic stamp duty?
This calculator covers ad valorem (value-based) stamp duty on the documented instruments listed above. It does not cover the ₦50 electronic money transfer stamp duty (charged on deposits of ₦10,000 and above through the banking system), which is a fixed charge per transaction.
Who pays stamp duty — the lessor or the lessee?
By default, the duty is payable by the person executing the instrument. In practice, lease agreements often specify who bears the stamp duty cost. For property transfers, the purchaser typically pays. Parties can agree to share the cost. Always check your agreement.
How accurate is this calculator?
This calculator implements the ad valorem stamp duty rates prescribed in the Stamp Duties Act. It is for guidance only and does not constitute legal or tax advice. For complex transactions (leaseholds, assignments, exemptions, or disputed valuations), consult a legal practitioner or the appropriate tax authority.
Disclaimer
This calculator is for informational and educational purposes only. It does not constitute legal, tax, or financial advice. Stamp duty liabilities may vary based on the specific terms of your instrument, applicable exemptions, state-level variations, and judicial interpretation of the Stamp Duties Act. Always consult a qualified legal practitioner or tax professional before executing or stamping any legal instrument.