EXAMINING THE LEGAL FRAMEWORK FOR THE COLLECTION OF STAMP DUTIES UNDER THE NTA 2025

Abstract

Act 2025, collection of stamp duties was within the purview of the Federal Government and collected on its behalf by the FIRS (now NRS), in respect of instruments executed between a corporate entity and another, or between a corporate entity and an individual. Similarly, in respect of instruments evidencing transactions between individuals, the respective states where the transaction is carried out is entitled to levy and collect stamp duties on the instrument through the relevant tax authority for the state. However, under the New Stamp Duties regime established under the Nigeria Tax Act 2025, the Nigeria Tax Administration Act has now vested the Federal Tax Authority (the Nigeria Revenue Service) with the exclusive power to administer and collect all stamp duties. This article seeks to examine in detail the new legal regime for the administration of stamp duties in Nigeria vis-a-vis the mandatory constitutional provision which makes the NRS merely an agent of collection on behalf of each state but liable to remit and render account to each state the net proceeds of stamp duties collected by it from each state.