News & Events


On Monday, July 20, 2020, the Federal Inland Revenue Service (“FIRS”) issued a public notice clarifying the administration of stamp duties in Nigeria (the “Public Notice”). The Public Notice among other things sets out the basis of stamp duty payments as well as the applicable stamp duty rates for various chargeable instruments.

One of the instruments referred to in the Public Notice is tenancy/lease agreements which is stated as being subject to ad valorem stamp duty at the rate of 6% of the rent. This created some uncertainty as the Public Notice did not appear to be in consonance with the provisions of the Stamp Duties Act[1].

Pursuant to the Stamp Duties Act,[2] duty on tenancy/lease agreements is graduated according to the tenor of the lease as follows:

Tenor of Lease Applicable Stamp Duty
1-7 Years 0.78%
7-21 Years 3%
Exceeds 21 years 6%


On Saturday July 25, 2020, the FIRS issued a statement clarifying that stamp duty on tenancy/lease agreements is as set out above and that the FIRS has not increased the stamp duty.

The FIRS will therefore continue to assess lease agreements in line with the provisions of the Stamp Duties Act.


[1] CAP 58, Laws of the Federation of Nigeria 2004

[2] Schedule on Leases, the Stamp Duties Act