Photo: Accountant General of the Federation, Dr Shamseldeen Ogunjimi.
The Federal Government has directed all ministries, departments and agencies (MDAs) to immediately discontinue the one per cent stamp duty deduction provisions from payments to contractors, vendors, suppliers and service providers.
The directive was contained in a circular signed by the Accountant General of the Federation, Dr Shamseldeen Ogunjimi.
It said that the directive is in order to ensure strict compliance with the provisions of the Nigeria Tax Act 2025, as well as to prevent the misapplication of statutory deductions.
In the circular, the new tax law provides that stamp duty is imposed on chargeable instruments and not on payment transactions.
“Henceforth, MDAs should note that stamp duty under the new regime is now applicable strictly to instruments and transactions expressly chargeable under the provisions and schedules of the Act”, it said
It, however, noted that stamp duty validly deducted before the commencement of the new tax law remains preserved under the savings provisions of the Act.
The circular further stated that the Nigeria Tax Act, effective January 1, 2026, governs the administration of stamp duty. “MDAs should further note that except for contracts awarded before January 1, 2026, the stamp duty provisions under the new Tax Act 2025 shall apply”, it noted.
