FG Halts Stamp Duty Deductions by MDAs Effective 2026
The Federal Government of Nigeria has issued a directive to all Ministries, Departments, and Agencies (MDAs) to immediately discontinue the deduction of a percentage of stamp duty on payments made to contractors, vendors, and suppliers. This decision is based on provisions in the Nigeria Tax Act 2025, as outlined in a Federal Treasury circular dated June 15, 2026, signed by the Accountant General of the Federation, Shamseldeen Ogunjimi.
The circular clarifies that stamp duty is applicable to chargeable instruments rather than payment transactions, which aligns with the new legal framework established by the Nigeria Tax Act 2025. The act, effective from January 1, 2026, preserves the validity of stamp duty deductions for contracts awarded before this date.
The circular emphasizes the need for compliance with the new tax law to prevent misapplication of statutory deductions and outlines the specific instruments subject to stamp duty, including agreements, bonds, and securities.
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