HB 889: Stamp Duties Act (Amendment) Bill, 2017

Stamp Duties Act, 2004 (“the Principal Act”)

Stamp Duties Act, 2004 (Amendment) Bill, 2017

Section 2 (Interpretation) –

"stamp" means a stamp impressed by means of a die as an adhesive stamp for de- noting any duty or fee;

Clause 2 of the Bill proposes to change the definition of the word, “stamp” as follows: -

“stamp” means a stamp impressed by means of a dye or ink electronically generated online through the internet or embossed through a point of sale (POS) machine or an adhesive postage stamp with face value or specified value.

Section 5 (Manner of denoting duty) –

“ (2) Where the duty may be denoted by adhesive stamps, postage stamps may, subject to the provisions of any Act or regulation, be used for the purpose.”

Clause 3 of the Bill proposes to amend this sub-section by replacing the word “may” with “shall” and create three new subsections – (6), (7), (8) as follows:

“(6) Adhesive stamp mentioned in this Act shall be any postage issued by the Nigerian Postal Service for the purpose of denoting duty and includes adhesive or electronically generated or online stamp” 


“(7) Electronic instruments and transaction of and between individuals carried on through or on behalf by banks, operator of clearance services and electronic payment systems and or any other electronic instrument and transactions shall be denoted by adhesive postage stamps or ink electronically generated online through the internet”

“(8) All paperless or transactions made electronically by way of any electronic settlement and registration system involving depository receipts or any receipts and clearance services through any intermediary or through the operations of such paperless system shall be denoted by adhesive postage stamps or ink electronically generated online through the internet.

Section 11 (Use of adhesive stamps) –

“(3) Every person who, being required by law to cancel an adhesive stamp, neglects or refuses duly and effectively to do so in the manner aforesaid, shall be guilty of an offence and liable on conviction to a fine of twenty naira.”

Clause 4 proposes to amend the section by increasing the fine and also extend it to corporate person as stated below:

“Every person who, being required by law to cancel an adhesive stamp, neglects or refuses duly and effectively to do so in the manner aforesaid, shall be guilty of an offence and liable on conviction to a fine of N50,000 or 6 months imprisonment or both, if a corporate person, liable to a fine or two hundred and fifty thousand naira or one year imprisonment or both”

Section 13 (Penalty for Fraud in relation to adhesive stamps)

“(a) fraudulently removes or causes to be removed from any instrument any adhesive stamp, or affixes to any other instrument or uses for any postal purpose any adhesive stamp which has been so removed, with intent that the stamp may be used again; or

(b) sells or offers for sale, or utters any adhesive stamp which has been so re- moved, or utters any instrument having thereon any adhesive stamp which has to his knowledge been so removed as aforesaid, he shall be guilty of an offence and liable on conviction in addition to any other fine or penalty to which he may be liable, to a fine of one hundred naira.”

Clause 5 seeks to amend Section 13 of the Principal Act by increasing the fine as follows –

“(a) fraudulently removes or causes to be removed from any instrument any adhesive stamp, or affixes to any other instrument or uses for any postal purpose any adhesive stamp which has been so removed, with intent that the stamp and be used again; or”

“(b) sell or offer for sale, or utters any adhesive stamp which has been so removed, or utters any instrument having thereon any adhesive stamp which has to his knowledge been so removed as aforesaid, he shall be guilty of an offence and liable on conviction in addition to any other fine or penalty to which he may be liable, to a fine of N250,000 only

Section 27(Mode of denoting duty) provides –

“(2) If any person whose office it is to prepare or deliver out any instrument of admission chargeable with duty, or to register, enter, or make any memorandum of any admission in respect of which no instrument of admission is delivered to the person admitted, neglects or refuses, within one month after the admission, to prepare a duly stamped instrument of admission, or to make a duly stamped register, entry, or memorandum of the admission as the case may require, he shall be guilty of an offence and liable on conviction to a fine of twenty naira.”

Clause 6 seeks to amend Section 27(2) of the Principal Act by increasing the fine as follows –

“if any person whose office it is to prepare or deliver out any instrument of admission chargeable with duty, or to register, enter or make any memorandum of any admission in respect of which no instrument of admission is delivered to the person admitted, to prepare a duly stamped instrument of admission, or to make a duly stamped registered, entry or memorandum of the admission as the case may require, he shall be guilty of an offence and liable on conviction to a fine of N50,000 or imprisonment for 6 months or both”

Section 28 (Adhesive stamps may be used for agreement)

 "The duty of ten kobo on an agreement may be denoted by an adhesive stamp which must be cancelled by the person by whom the agreement is first signed before he delivers it out of his hands.”

Clause 7 seeks to amend Section 28 of the Principal Act by changing the duty on agreement as follows: -

“All forms of agreement shall be delivered by adhesive postage stamps issued by the Nigeria Postal Services for the purpose of denoting duty which shall be cancelled by the person by whom the agreement is first signed before he delivers it out of his hand”

Section 32 (Appraisement to be written out)

“(1) Every appraiser, by whom an appraisement or valuation chargeable with duty is made, shall, within fourteen days after the making thereof, write out the same in words and figures showing the full amount thereof, and shall duly stamp the same and if he neglects or omits so to do, or in any other manner first discloses the amount of the appraisement or valuation, he shall be guilty of an offence and liable to a fine of one hundred naira.”

“(2) Every person who receives from any appraiser, or pays for the making of any such appraisement or valuation, not so written out and stamped as aforesaid, shall incur a fine of forty naira.”

Clause 8 proposes amendment of Section 32 of the Principal Act by increasing the fines –

“(1) Every appraiser by who an appraisement or valuating chargeable with duty is made shall, within 14 days after the making thereof, write out the same in words and figures showing the full amount thereof, and shall duly stamp the same and if he neglects or omits so to do, or in any other manner first discloses the amount of the appraisement or valuation, he shall be guilty of an offence and liable to a fine of N250,000 only.”

“Every person who receives from any appraiser or pays for the making of any such appraisement or valuation, not so written out and stamped as aforesaid, shall incur a fine of N100,000 only”

Section 35

“(2) Any person who commits an offence against this section shall be guilty of an offence and liable on conviction to a fine of two hundred naira.”

Clause 9 seeks to amend Section 35 by increasing the fine under sub-section 2 as follows: -

“(2) Any person who commits an offence against this section shall be guilty of an offence and liable on conviction to a fine of N2million only.”

Section 39 provides –

“(1) The fixed duty of two kobo on a bill of exchange, payable on demand or at sight or on presentation or within three days after date or sight, may be denoted by an adhesive stamp, which, where the bill is drawn in Nigeria, shall be cancelled by the person by whom the bill is signed before he delivers it out of his hands, custody, or power.”

Clause 10 seeks to amend the S. 39(1) of the Principal Act as follows: -

“(1) All Bills of exchange payable on demand or at sight or on presentation or within 3 days after date at sight, shall be denoted by an adhesive postage stamp for the time being used to denote duty issued by the Nigerian Postal Service, which where the Bill is drawn in Nigeria, shall be cancelled by the person by whom the Bill is signed before he delivers it out of his hands, custody or powers”

Section 40 –

“(1) Every person into whose hands any bill of exchange or promissory note, drawn or made out of Nigeria, comes in Nigeria before it is stamped shall, before he presents for payment, or endorses, transfers or in any manner negotiates, or pays the bill or note, affix thereto a proper adhesive stamp or proper adhesive stamps of sufficient amount, and can- cel every stamp so affixed thereto: “

Clause 11 seeks to amend Section 40(1) as follows –

“(1) Every person into whose hands any bill of exchange or promissory note, drawn or made out of Nigeria, comes in Nigeria before it is stamped shall, before he presents for payment, or endorses transfers or in any manner negotiates, or pays the bill or note, affix thereto a postage stamp denoted for duty at the prevailing rate issued by the Nigerian Postal Services.

Section 42 -

“(1) Every person who issues, endorses, transfers, negotiates, presents for payment, or pays any bill of exchange or promissory note liable to duty and not being duly stamped, shall be guilty of an offence and liable on conviction to a fine of twenty naira, and the person who takes or receives from any other person any such bill or note either in payment or as a security, or by purchase or otherwise, shall not be entitled to recover thereon, or to make the same available for any purpose whatever:

Provided that if any bill of exchange payable on demand or at sight or on presentation, or within three days after date or sight is presented for payment unstamped, the person to whom it is presented may affix thereto an adhesive stamp of two kobo and cancel the same, as if he had been the drawer of the bill, and may thereupon pay the sum in the bill mentioned, and charge the duty in account against the person by whom the bill was drawn, or deduct the duty from the said sum, and the bill shall, so far as respects the duty, be deemed valid and available.”

Clause 12 seeks to amend S. 42(1) by increasing the penalty for issuing any unstamped bill or note: -

“(1) Every person into whose hands any bill of exchange or promissory note liable to duty and being duly stamped, shall be guilty of an offence and liable on conviction to a fine of N50,000, and the person who takes or receives from any other person any such bill or note either in payment or as a security, or by purchase or otherwise, shall not be entitled to recover thereon, or to make the same available for any purpose whatever.”

Provided that if any bill of exchange payable on demand or at sight or on presentation or within 3 days after date of sight is presented for payment unstamped, the person to whom it is presented may affix thereto an adhesive stamp at the postage rate denoted for duty by the Nigerian Postal Service for the time being n force, and cancel the same, as if he had been the drawer of the bill, and may thereupon pay the sum in the bill mentioned, and charge the duty in account against person by whom the bill was drawn, or deduct the duty from the said sum, and the bill shall, so far as respects the duty, be deemed valid and available.”

Section 44 – Bills of Lading

“(2) Every person who makes or executes any bill of lading not duly stamped shall be guilty of an offence and liable on conviction to a fine of one hundred naira.”

Clause 13 seeks to amend S. 44(2) as follows:

“(2) Every person who makes or executes any bill of lading not duly stamped shall be guilty of an offence and liable on conviction to a fine of N250,000 or one year imprisonment or both.”

Section 50 – Obligation to execute contract note

“(2) If any person makes or executes any contract note chargeable with duty and not being duly stamped, he shall be guilty of an offence and liable on conviction to a fine of forty naira.”

“(4) All stamp duties on a contract note may be denoted by an adhesive stamp which is to be cancelled by the person by whom the note is executed.”

Clause 14 seeks to amend S. 50(2) & (4) as follows –

“(2) If any person makes or executes any contract note chargeable with duty and not being duly stamped, he shall be guilty of an offence and liable on conviction to a fine of N100,000.”

“(4) All stamp duties on a contract note shall be denoted by adhesive postage stamp or ink electronically generated online through the internet which is to be cancelled by the person by whom the note is executed.”

Section 66 – Duplicates and Counterparts

“The duplicate or counterpart of an instrument chargeable with duty (except the counterpart of an instrument chargeable as a lease, such counterpart not being executed by or on behalf of any lessor or grantor) shall not be deemed duly stamped, unless it is stamped as an original instrument, or unless it is made to appear to a commissioner (who shall upon payment of a fee of 25 kobo in adhesive stamps, certify on such duplicate or counterpart accordingly) that the full and proper duty has been paid upon the original instrument of which it is the duplicate or counterpart.”

Clause 15 seeks to amend S. 66 by increasing prescription on provision as to duplicates and counterparts as follows –

“The duplicate or counterpart of an instrument chargeable with duty (except the counterpart of an instrument chargeable as a lease, such counterpart not being executed by or on behalf of any lessor or grantor) shall not be deemed duly stamped, unless it is stamped as an original instrument, or unless it is made to appear to a commissioner (who shall upon payment of a fee of N5,000 in adhesive stamps, certify on such duplicate or counterpart accordingly) that the full and proper duty has been paid upon the original instrument of which it is the duplicate or counterpart

Section 71

“The duty upon an instrument chargeable with duty as lease for any definite term less than a year and the duty upon the duplicate or counterpart of any such instrument, may be denoted by an adhesive stamp which shall be cancelled by the person by whom the instrument is first executed.”

Clause 16 seeks to amend S. 71 by changing duty on certain leases as follows –

“The duty on an instrument chargeable with duty as lease or for tenancies for any definite term less than 3 years and the duty upon the duplicate or counterpart of any such instrument, shall be denoted by an adhesive postage stamp which shall be cancelled by the person by whom the instrument is first executed.”

Section 72 – Provisions as to letters of allotment

“Every person who executes, grants, issues, or delivers out any document chargeable with duty as a letter of allotment, letter or renunciation, or scrip certificate, or as scrip, before the same is duly stamped, shall be guilty of an offence and liable on conviction to a fine of forty naira.”

Clause 17 seeks to increase penalty on unstamped allotment as follows: -

“Every person who executes, grants, issues, or delivers out any document chargeable with duty as a letter of allotment, letter or renunciation, or scrip certificate, or as scrip, before the same is duly stamped, shall be guilty of an offence and liable on conviction to a fine of N100,000.”

Section 74 – Provision as to proxies and voting papers

“(1) Every letter or power of attorney for the purpose of appointing a proxy to vote at a meeting, and every voting paper, hereby respectively charged with the duty of two kobo, shall specify the day upon which the meeting at which it is intended to be used is to be held, and shall be available only at the meeting so specified, and any adjournment thereof.

(2) Every person who makes or executes, or votes, or attempts to vote, under or by means of any such letter or power of attorney or voting paper, not being duly stamped, shall be guilty of an offence and liable on conviction to a fine of one hundred naira, and every vote given or tendered under the authority or by means of the letter or power of attorney or voting paper, shall be void.”

Clause 18 seeks to increase duty and penalty under S. 74 as to proxies and voting papers: -

“1) Every letter or power of attorney for the purpose of appointing a proxy to vote at a meeting, and every voting paper, hereby respectively charged with the rate of postage denoted for duty at the prevailing period, shall specify the day upon which the meeting at which it is intended to be used is to be held, and shall be available only at the meeting so specified, and any adjournment thereof.

(2) Every person who makes or executes, or votes, or attempts to vote, under or by means of any such letter or power of attorney or voting paper, not being duly stamped, shall be guilty of an offence and liable on conviction to a fine of N250,000, and every vote given or tendered under the authority or by means of the letter or power of attorney or voting paper, shall be voided.”

Section 78

“(2) Any person who contravenes the provisions of this section shall be guilty of an offence and shall be liable on conviction to a fine of forty naira”

Clause 19 seeks to increase fine for transferring unstamped marketable security as follows: -

“Any person who contravenes the provisions of this section shall be guilty of an offence and shall be liable on conviction to a fine of N100,000”

Section 79

“(2) If the marketable security upon which the stamp duty has been charged in accordance with this section is assigned, transferred or in any manner negotiated in Nigeria after the date stated on the face of the security as the date by which the amount secured is to be paid off, stamp duty thereon shall be charged at the full rate of duty, an allowance being made for the duty already paid, and if any person in Nigeria after the said date as- signs, transfers or in any manner negotiates or is concerned as booker or agent in assigning, transferring or in any manner negotiating any such security, and the security is not stamped in accordance with this provision, that person shall be guilty of an offence and liable on conviction to a fine of forty naira.”

Clause 20 seeks to amend S. 79(2) by increasing fine on negotiating unstamped marketable security: -

“(2) If the marketable security upon which the stamp duty has been charged in accordance with this section is assigned, transferred or in any manner negotiated in Nigeria after the date stated on the face of the security as the date by which the amount secured is to be paid off, stamp duty thereon shall be charged at the full rate of duty, an allowance being made for the duty already paid, and if any person in Nigeria after the said date assigns, transfers or in any manner negotiates or is concerned as booker or agent in assigning, transferring or in any manner negotiating any such security, and the security is not stamped in accordance with this provision, that person shall be guilty of an offence and liable on conviction to a fine of N100,000.”

Section 83

“The duty upon a notarial act and upon the protest by a notary public of a bill of exchange or promissory note may be denoted by an adhesive stamp which shall be cancelled by the notary.”

Clause 21 seeks to amend S. 83 by changing the word “may” to “shall” in the title and line 2 of the Section as well as create new sub-sections (1) & (2) –

“83. Duty on notarial acts shall be denoted by adhesive stamps:

1. The duty upon a notarial act and upon the protest by a notary public of a bill of exchange or promissory note shall be denoted by an adhesive stamp, which shall be cancelled by the notary
2. Every bank deposit made for individuals and corporate bodies shall be charged with duty denoted by adhesive postage stamp or electronically generated stamp of the Nigerian Postal Service”

Section 85

“A policy of insurance against accident is not to be charged with any further duty than six kobo by reason of the same extending to any payment to be made during sickness or incapacity from personal injury.”

Clause 22 seeks to amend S. 85 by increasing stamp on policy of insurance against accident and sickness –

“A policy of insurance against accident is not to be charged with any further duty than N200 by reason of the same extending to any payment to be made during sickness or incapacity from personal injury.”

Section 87

“Any person who-

(b) makes, executes or delivers out, or pays or allows in account, or agrees to pay or allow in account, any money upon or in respect of any policy of insurance which is not duly stamped shall be guilty of an offence and liable on conviction to a fine of forty naira “

Clause 23 proposes to amend S. 87 (b) by increasing fine for not making out policy of insurance

“(b) makes, executes or delivers  out, or pays or allows in account, or agrees to pay or allow in account, any money upon or in respect of any policy of insurance which is not duly stamped shall be guilty of an offence and liable on conviction to a fine of N100,000”

Section 89

“(1) For the purposes of this Act, the expression "receipt" includes any note, memorandum, or writing whereby any money amounting to four naira or upwards, or any bill of exchange or promissory note for the money amounting to four naira or upwards, is acknowledged or expressed to have been received or deposited or paid, or whereby any debt or demand, or any part of a debt or demand, of the amount of four naira or upwards, is acknowledged to have been settled, satisfied, or discharged, or which signifies or imports any such acknowledgement, and whether the same is or is not signed with the name of any person.”

“(2) The duty upon a receipt may be denoted by an adhesive stamp which is to be cancelled by the person by whom the receipt is given before he delivers it out of his hands” 

Clause 24 proposes to amend S. 89 by increasing the threshold under sub-section (1); and changing the word “may” to “shall” under sub-section (2) –

“(1) For the purposes of this Act, the expression "receipt" includes any note, memorandum, or writing whereby any money amounting to N1,000 or upwards, or any bill of exchange or promissory note for the money amounting to N1,000 or upwards, is acknowledged or expressed to have been received or deposited or paid, or whereby any debt or demand, or any part of a debt or demand, of the amount of N1,000 or upwards, is acknowledged to have been settled, satisfied, or discharged, or which signifies or imports any such acknowledgement, and whether the same is or is not signed with the name of any person.”

“(2) The duty upon a receipt may be denoted by an adhesive postage stamp, which is to be cancelled by the person by whom the receipt is given before he delivers it out of his hands, or electronically or internet generated or point of sale (POS) stamp in the value of the lowest issued as indicative value by Nigeria Postal Service”

Section 91

“(1) A receipt given without being stamped may be stamped with an impressed stamp on the following terms-

(a) within 28 days after it has been given, on payment of the duty and a penalty of four naira;

(b) after 28 days, but within 56 days, on payment of the duty and a penalty of twenty naira,

and shall not in any other case be stamped with an impressed stamp.”

Clause 25 seeks to amend S. 91(1)(a)&(b) of the Principal Act by increasing the penalty for using an unstamped receipt as follows –

“(1) A receipt given without being stamped may be stamped with an impressed stamp on the following terms-

(a) within 28 days after it has been given, on payment of the duty and a penalty of N10,000;

(b) after 28 days, but within 56 days, on payment of the duty and a penalty of N50,000,

and shall not in any other case be stamped with an impressed stamp.”

Section 92 (Penalty for offences in reference to receipts)

“If any person –

(c) upon a payment to the amount of four naira or upwards, gives a receipt for a sum not amounting to four naira, or separates or divides the amount paid with the intent to evade the duty, he shall be guilty of an offence and liable on conviction to a fine of twenty naira.”

Clause 26 seeks to amend Section 92(c) to increase threshold and fine in reference to receipts read as follows: -

“c) upon a payment to the amount of N1,000 or upwards, gives a receipt for a sum not amounting to N1,000, or separates or divides the amount paid with the intent to evade the duty, he shall be guilty of an offence and liable on conviction to a fine of N50,000 or 6 months imprisonment or both. If a corporate person, shall be liable on conviction to a fine of N250,000 or 1 year imprisonment”

Section 115 – Power to make regulation relating stamp duty

“(d) to the substitution of adhesive stamps for impressed stamps, or of impressed stamps for adhesive stamps, or of revenue stamps for postage and revenue stamps”

Clause 27 proposes to amend S. 115(d) of the Principal Act by removing ambiguity as follows: -

“(d) to the substitution of adhesive stamps for impressed stamps, or of impressed stamps for adhesive stamps, or of revenue stamps for postage and revenue stamps with the consent of the President where the means to be substituted is within the exclusive  legislative lists”

Schedule to Section 83

“(3) Acknowledgement by an banker of the receipt of any bill of exchange or promissory note for the purpose of being presented for acceptance or payment.

(4) Receipt given for money deposited in any bank, or with any banker, to be accounted for and expressed to be received of the person to whom the same is to be accounted for, or for money withdrawn from a savings bank account.”

Clause 28 proposes amendment to the schedule to Section 83 of the Principal Act, which is amended by removing items (3) and (4) on the exemptions list (see opposite cell), and re-arrange other numbers in ascending order. The following sub-sections (5), (6), (7), & (8) will then become (3), (4), (5) & (6)