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The short answer
Under the Nigeria Tax Act 2025, dutiable instruments should be stamped within 30 days of execution. An unstamped dutiable instrument is not admissible in civil or arbitral proceedings until stamped, and late stamping attracts a penalty of 10% of the unpaid duty plus interest. Many ordinary service agreements carry a fixed duty, while leases, share transfers and property deals pay a percentage.
Most small businesses in Nigeria sign contracts and file them without a thought for stamp duty. Then a customer refuses to pay, the business sues, and the other side objects that the contract is not stamped. The 2025 tax laws kept that rule and tightened the timetable, so it is worth knowing which documents to stamp and how to do it when the signatories are spread across countries.
The rules in the 2025 Act
The Stamp Duties Act was consolidated into the Nigeria Tax Act 2025 (NTA), in force from 1 January 2026. Odubunmi's April 2026 review in the NAU Journal of Private and Property Law summarises the provisions:
- Section 126(1): instruments are to be stamped within 30 days of execution.
- Section 127(1): an unstamped dutiable instrument is not admissible in civil or arbitral proceedings. Section 127(2) allows it in criminal proceedings.
- The Ninth Schedule lists the instruments and rates.
Section 110 of the Nigeria Tax Administration Act 2025 (NTAA) sets the penalty for failing to stamp: 10% of the unpaid duty plus interest at the CBN monetary policy rate. Sections 3 and 87 of the NTAA give stamp duty powers both to the Nigeria Revenue Service and to state revenue services, so the right office depends on the parties; your adviser or the NRS portal will route it.
Which business documents need stamping
Examples from the Ninth Schedule, as reported by Odubunmi (April 2026):
| Instrument | Duty under NTA 2025 (as reported) |
|---|---|
| Agreement or contract (including certain hire, sale and hire-purchase agreements) | Fixed ₦1,000, payable by the beneficiary of the service (item 35) |
| Agreement under hand | Fixed ₦500 (item 36) |
| Promissory note | 0.1% of the value (item 30) |
| Irrevocable assignment on sale | 1.5%, paid by the transferee (item 5) |
| Conveyance on sale | Exempt up to ₦10 million (item 15) |
| Receipt of ₦10,000 or more | ₦50 (item 47) |
| Electronic transfer of ₦10,000 or more | ₦50, paid by the transferor (item 48) |
A federal Treasury circular of 15 June 2026, reported by MSME Africa, told ministries to stop deducting 1% stamp duty from contractor payments, because under the NTA stamp duty falls on chargeable instruments, not payment transactions. The circular puts Ninth Schedule rates between 0.04% and 1.5% depending on the instrument. Rates for leases and share transfers under the new Act were not confirmed by the sources read for this article; check with your adviser or the NRS before stamping them.
Why it matters when you need to enforce
Section 127 is the practical reason to stamp. If a customer owes you money under a supply agreement and you sue in the High Court or start an arbitration, the agreement is a key document. If it is unstamped, the other side can object to its admission, and you will be stamping it late, with the penalty, in the middle of a dispute. That costs time and goodwill that stamping on day one would have saved. A stamped contract also makes a stronger first exhibit in a small claims court or a demand letter.
Worked example
Example only. Your company signs a 12-month service agreement with a Lagos client and a ₦3,000,000 promissory note from a distributor. Stamped on time, the service agreement costs a fixed ₦1,000 and the note 0.1% of ₦3,000,000, which is ₦3,000. If the note is stamped late, the 10% penalty on ₦3,000 is ₦300, plus interest. The money is small; the risk of a contract you cannot rely on is not.
Documents that are easy to miss
- Supply and distribution agreements renewed by email rather than a fresh signed contract: check whether the renewal is itself an instrument.
- Promissory notes and acknowledgements of debt taken from customers who fall behind.
- Staff loan agreements, which are agreements like any other.
- Equipment hire and hire-purchase agreements, which the Ninth Schedule names.
Stamping when signatories are abroad
- Sign electronically or in counterparts, and note the date the last party signs: the 30 days run from execution.
- Send the signed copy to your accountant or company secretary in Nigeria the same week.
- Stamp online. CITN's May 2026 advisory says the NRS released Rev360 guides for stamp duties, covering single transactions and bulk.
- Keep the stamp certificate with the contract, and file both in your contract register.
- If you signed the document outside Nigeria, ask whether an extended period applies. The old law allowed time from first receipt in Nigeria; whether the 2025 Act keeps that rule was not confirmed in the sources read.
Where Pryme fits
With a Pryme Business Account, opened from any country, the Compliance agent can keep a register of signed contracts and remind you before the 30-day window closes; a person decides what to stamp. When a stamped contract is not paid, see recovering money owed by customers, and for the wider calendar see the compliance calendar. Payment receipts can be issued as verifiable VerifyDoc.ai receipts.
Questions people ask
Do I need to stamp a contract in Nigeria?
Dutiable instruments under the Nigeria Tax Act 2025 should be stamped within 30 days of execution. Many ordinary agreements carry a fixed duty.
Is an unstamped agreement valid in Nigeria?
It is not void, but section 127(1) of the Nigeria Tax Act 2025 makes an unstamped dutiable instrument inadmissible in civil or arbitral proceedings until it is stamped.
What is the penalty for late stamping?
Section 110 of the Nigeria Tax Administration Act 2025: 10% of the unpaid duty plus interest at the CBN monetary policy rate.
Do government agencies still deduct 1% stamp duty from contractors?
A federal Treasury circular of 15 June 2026 told ministries to stop, because duty now falls on instruments rather than payments.
Sources
- Odubunmi, stamp duties under the Nigeria Tax Act 2025, NAU Journal of Private and Property Law (Apr 2026) · accessed Oct 2026
- Nigeria Tax Administration Act 2025 (gazette copy) · accessed Oct 2026
- MSME Africa: FG stops 1% stamp duty deduction on contractor payments (24 Jun 2026) · accessed Oct 2026
- CITN: Member advisory on the NRS Rev360 portal (May 2026) · accessed Oct 2026
This article is general information, not financial, legal or tax advice. Products described are provided under the terms on this site and are subject to regulation and eligibility.