Stamp Duty Calculator Nigeria

Stamp duty in Nigeria is a tax levied on legal instruments — written documents that record transactions of legal significance. In the context of property, it applies to documents such as deeds of assignment, leases, mortgage deeds, and deeds of conveyance. The primary legislation is the Stamp Duties Act (Cap S8, LFN 2004), as significantly amended by the Finance Act 2019, Finance Act 2020, and subsequent annual Finance Acts.

The purpose of stamp duty is threefold: it generates revenue for both federal and state governments; it provides a mechanism for authenticating and validating legal instruments; and it creates a paper trail that can be used to verify the consideration (price) paid in a transaction, which in turn supports property tax assessment and capital gains tax calculations.

Under the constitutional allocation in Nigeria, stamp duties on instruments executed between companies (such as agreements where at least one party is a corporate body) are collected by the Federal Inland Revenue Service (FIRS) and go into the Federation Account. Stamp duties on instruments between individuals are collected by state governments. In practice, this distinction is observed differently in different states, and the 2020 amendment established FIRS as the collection authority for the 1.5% rate on property transactions where the consideration exceeds ₦1 million, regardless of the parties.

An instrument that has not been properly stamped is inadmissible as evidence in any court proceedings. This is a fundamental reason why stamp duty payment is not optional — it is the difference between having legally enforceable proof of your property ownership and a document that cannot be presented in court if your title is ever challenged.

Governor's Consent is one of the most misunderstood aspects of Nigerian property law for first-time buyers. Under the Land Use Act 1978 (a federal statute that applies uniformly across all 36 states and the FCT), all land in Nigeria is vested in the state governor, who holds it in trust for the people of the state. No land in Nigeria can be "owned" outright in the Western freehold sense — all private land rights in Nigeria are held under a statutory right of occupancy (for urban land) or customary right of occupancy (for rural land) granted by the governor.

As a direct consequence, whenever a statutory right of occupancy is transferred, subleased, or mortgaged, the transaction requires the Governor's Consent. Without this consent, the transaction is void — legally meaningless. This applies whether you are a buyer, a borrower pledging property as collateral, or a landlord granting a lease exceeding three years.

To apply for Governor's Consent, you (through your solicitor) submit an application to the state's Ministry of Lands, Housing and Urban Development (or its equivalent). The application package typically includes: the duly executed instrument (e.g., Deed of Assignment) in original and copies; evidence of payment of the governor's consent fee; the existing title document (Certificate of Occupancy or prior Deed of Assignment with consent); a survey plan; evidence of payment of ground rent up to date; a recent land information certificate; and proof of stamp duty payment.

The state's Land Use Allocation Committee (LUAC) reviews each application. The process is substantially paperwork-intensive and — particularly in Lagos — subject to long delays due to the sheer volume of applications. In Lagos, consent fees are paid to the Lagos State Internal Revenue Service (LIRS) and are calculated at rates set by the Lagos State Government, which can change from year to year. Always verify the current fee schedule directly with LIRS or a practising solicitor before budgeting.

Nigerian property titles are not uniform — what you receive depends on the location and history of the property. Understanding the differences between the main title documents is essential before purchasing.

Certificate of Occupancy (C of O): Issued directly by the state governor (in practice, by the Ministry of Lands), a C of O is the primary and strongest evidence of title to land in Nigeria. It confers a 99-year right of occupancy. For urban land, the C of O records the holder's name, the location and description of the land, the term of the right of occupancy, and any conditions (such as payment of ground rent). A C of O can be mortgaged, assigned (sold), or leased with the Governor's Consent. It is the title document that lenders most prefer as collateral.

Deed of Assignment: When a property with an existing C of O is sold, the seller executes a Deed of Assignment transferring the residual term of the right of occupancy to the buyer. The buyer then applies for Governor's Consent to the assignment. Once consent is obtained, the Deed of Assignment registered at the land registry is the buyer's primary title document — an assigned C of O title. In many cases, properties in older residential estates have multiple layers of deeds and assignments going back decades. A good title search traces this chain back to the original C of O or grant.

Right of Occupancy (RoO): In northern Nigeria (particularly Kano, Kaduna, Sokoto, and other states operating under customary tenure systems), land may be held under a customary Right of Occupancy rather than a statutory C of O. Customary RoOs have some legal protection but are generally considered a weaker title than a C of O, and many lenders are reluctant to accept them as collateral without additional due diligence.

Deed of Conveyance (pre-1978 land): In some states, particularly in the south-east (Anambra, Imo, Enugu) and parts of Oyo State, land may still be held under older deeds of conveyance executed before the Land Use Act 1978, which vest freehold title in the buyer. While technically superseded by the Land Use Act (which nationalised all land), such old conveyances remain in circulation and are accepted by courts and some lenders. The position is legally complex — take specific legal advice before transacting on such titles.

The most important due diligence step in any Nigerian property transaction is verifying that the seller actually has the right to sell and that the property is not subject to disputes, encumbrances, or competing claims. This is done through a formal title search (also called a search at the land registry).

Your solicitor should conduct a physical search at the relevant state land registry, presenting the title documents to the land registry officers who will verify against the register whether: the property is registered in the seller's name; there are no registered mortgages or charges against the property; there are no caveats, caution notices, or court injunctions affecting the title; the right of occupancy has not been revoked or forfeited by the state; and the description of the property on the title matches what is on the ground.

Beyond the land registry search, additional due diligence for high-value transactions should include: a physical inspection and comparison of the survey plan with what is on the ground (boundary disputes are extremely common in Nigeria); enquiries at the local planning authority to confirm whether the property is subject to any government acquisition or compulsory purchase scheme; checks at the Federal High Court, State High Court, and magistrates court registries for pending litigation involving the property; and verification of the seller's identity through official means (NIN, BVN, and for corporate sellers, corporate affairs commission records).

Buyers in estate developments (properties within gated housing estates developed by a single developer) should obtain the master C of O or freehold title for the estate and verify that the developer has genuine title to the land before acquiring an individual plot or unit. Many Nigerians have lost money to developers who sold properties on land they did not own.

The Land Use Act 1978 (now Cap L5, LFN 2004) is the cornerstone of Nigeria's land tenure system and is enshrined in Section 315 of the 1999 Constitution, which makes it very difficult to repeal or amend. Understanding it is essential for anyone buying, selling, or building on land in Nigeria.

The Act vests all land in each state in the governor of that state, who holds it in trust for the people. Individuals and companies can only hold rights of occupancy — not ownership of the land itself. Urban land rights are allocated via statutory rights of occupancy (evidence of which is the C of O); rural land rights may be allocated as customary rights of occupancy.

The practical consequences for property buyers and builders include: (1) you cannot own land outright — you hold a 99-year right to use it; (2) government can revoke your right of occupancy for overriding public interest, though in principle they must pay compensation; (3) any transfer, mortgage, or sublease requires the Governor's Consent; and (4) failure to develop land within a specified period may be grounds for revocation (though this provision is rarely enforced against individuals).

Critics of the Land Use Act argue that it stifles the development of a vibrant property market by making land transactions more expensive and time-consuming than necessary. The requirement for Governor's Consent on every transfer — a process that takes months or years — is widely seen as a bottleneck. There have been calls for reform, including proposals to allow freehold ownership in designated zones, but as of 2026 the Act remains in force without fundamental structural changes.