Sunday September 26, 2021 7:10 a.m. / by CITN / Header image credit: KPMG Nigeria & EcoGraphics

In parts one and two of this article which have been featured in the previous weeks, we discussed the general basis of stamp duty administration, dutiable instruments, and how to stamp an instrument. In addition, stamping time, exempted products and penalties for non-compliance were discussed in Part II. Basic terminologies and other aspects of stamp duty administration in Nigeria will be discussed in this section.

Conceptual clarification of terms


The stamp in this concept is referred to as a printed pattern or mark using an engraved or inked block die or an adhesive stamp or an electronic stamp or electronic acknowledgment to denote an assignment.


These include all written documents and electronic documents.


This term is used when the matrix is ​​printed or affixed to a document to indicate any duty paid. This shows the amount of duties paid on the instrument at a glance.


This is the stamping of any document known as an instrument through the use of a die and a stamping machine.

The stamp duty commissioner


The Stamp Duties Commissioner is appointed to oversee the implementation of the provisions of the law. The Federal Inland Revenue Service (FIRS) Stamp Duty Commissioner is appointed by the President of the Federal Republic of Nigeria, while the State Commissioner is appointed by the Governor of the relevant State.

Tasks / Functions

  • General administration of the stamp duty office.
  • Assessment of rights to instruments, including the imposition of penalties and interest where applicable.
  • Custody of all stamping materials, including dies and stamps.
  • Stamping, embossing of the instruments and signature of the Instruments thus stamped.
  • Tax education for taxpayers.
  • Accounting for collected fees.

Designation of stamp duties

The stamping of documents can be done either by embossing die; affixing an adhesive stamp, or affixing a postage stamp instead of adhesive stamps or printing on instruments.

Section 5 of the Stamp Duties Act provided for the following forms or methods of designating stamp duties:

  • The use of a matrix printed on an instrument as an adhesive pad;
  • Affixing of printed adhesive stamps (issued by the Service) on the instruments;
  • Direct electronic printing or printing on the instrument;
  • Electronic marking;
  • Issuance of a stamp duty certificate;
  • Any other form of stamp duty payment recognition adopted by the Service.

To note: The consequence of stamping an instrument with an adhesive pad is such that an instrument must be stamped at or before execution, unlike the case of the pad which could be stamped within a specified time after execution.

Electronic stamp duty

Electronic stamping is an electronic process of stamping instruments or documents when paying approved fees electronically and generating receipt of payment without contacting tax authorities.

Procedure for electronic stamp duty payment to FIRS


How to pay electronic stamp duty for FIRS (procedure)

Step 1

Visit, click e-services, also click e-stamp duty. After that click on sign up here. Create your account or log in using your existing account details on ISDS. Use your preferred email id as the username.

2nd step

Find and select the stamp duty instrument from the List of Services and Rates menu or from the MDA menu.

Step 3

Provide the details of the transaction by filling in the appropriate fields, including the TIN and transaction amounts. The tax identification number (TIN) of all parties involved in the transaction will be required

Step 4

See the summary page for accuracy.

Step 5

Make payments using one of the payment options. For example, debit cards, credit cards, bank payments, etc.

Step 6

Upon successful payment, ISDS will forward an electronic copy of the stamp duty certificate to the user’s current login email address.

Step 7

Log out or continue to process another stamp duty transaction.

Advantages of electronic stamping

  • It is faster, simpler and easier to administer.
  • It improves precision.
  • It eliminates corruption through human involvement.
  • It encourages voluntary compliance.
  • It’s profitable.

A taxpayer can at any time and on any day fulfill his obligations, print and reprint his payment E-receipt in the comfort of his room.

Disadvantages of electronic stamping

  • It is not friendly for uneducated taxpayers
  • The ICT infrastructure challenge of Internet connectivity can easily affect electronic stamping and lead to lost revenue.
  • Risk of being hacked using an electronic payment system.
  • The challenge of transferring money between different electronic payment gateways.
  • Litigation on the failure of the transaction; where the taxpayer’s account could be debited while the FIRS account was not credited electronically.

Please watch the final and concluding part of the Nigeria Stamp Duty Administration Review next week.

Download hereFinance Law 2020

Related links

Administration of Stamp Duties in Nigeria under the Finance Law – Part 2Sep 10, 2021

Administration of stamp duty in Nigeria under the Finance Act03 Sep 2021

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