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FIRS: MAKING STAMP DUTY THE NEW BLACK GOLD
By Muhammad Nami
This matter of making the Stamp Duty (and by implication tax revenue) the next black gold has occupied my mind even long before I was appointed the Executive Chairman of the Federal Inland Revenue Service. I have thought that given the way the Nigerian economy has been experiencing some difficulties due to unpredictable shocks in the competitive international oil market, it would be economically wise that the country begins to activate its latent tax potentials such as the stamp duty which has long been neglected. For me, the key to Nigeria’s economic prosperity is the tax revenue driven by Stamp Duties in the face of dwindling oil revenue.
Although, the Stamp Duty Act has been in place since 1939, not much attention is paid to it. Yet, if properly harnessed and administered it can be a goose that will lay the golden egg for the Federal Government. My optimism stems from the fact that Stamp Duty has the potential to yield tax revenue in the region of trillions of naira per annum. For instance, after we carried out an analysis of transactions in the banking sector, we discovered that in 2019 alone the total volume of transactions both chargeable and non-chargeable was over N52 billion of which the total value of transactions was over N613 trillion. If you compute N50 Stamp Duty on the chargeable transactions, of course, your guess is as good as mine. Presently, feelers from certain quarters have it that if the records of stamp duties on chargeable transactions from the year 2000 to present were to be scrutinised it would be discovered that trillions of unremitted stamp duty revenue are realisable.
Thus, I feel excited when recently the President and Commander-in-chief of the Armed Forces of the Federal Republic of Nigeria, Muhammadu Buhari inaugurated the Inter-ministerial Committee on the Audit and Recovery of Back Year Stamp Duties. This is an important step towards diversifying the Nigerian economy.
It is obvious that oil revenue has contributed greatly to the various infrastructural developments so far achieved in the country. These developments are noticeable in all sectors of the economy, and they are too many to be accounted for in this short piece. Yet, despite this seeming developmental leap, Nigeria has progressively slid into an import dependent economy from its prime position as an export economy prior to the discovery of oil in 1958.
For me, therefore, it is reassuring that Stamp Duty is an enduring tax type that can withstand any economic shocks because of the varied instruments on which it can be charged. The table below highlights the various instruments on which the Stamp Duty is payable.
FIXED DUTY INSTRUMENTS
AD-VALOREM INSTRUMENTS
Power Of Attorney (PoA)
Deed of Assignment
Certificates of Occupancy (C of O)
Sales Agreement
Proxy forms
Legal Mortgage or Debentures
Appointment of Receiver
Tenancy or Lease Agreements
Memorandum of Understanding (MoU)
Insurance Policies
Joint Venture Agreements (JVA)
Contract Agreements
Guarantor’s form
Vending Agreement
Ordinary Agreements
Promissory Notes
Receipts
Charter-Party
Contract Notes
In addition to these instruments, any electronic receipt or electronic transfer, money deposited in any bank or with any banker or any type of account of an amount from N10,000 upwards shall attract a singular or one-off duty of the sum of N50. In the same way, Stamp Duty is payable on receipt (written, printed or in electronic form) for transactions or between corporate bodies or between a Corporate body and an individual, group or body of individuals, which value amounts to N10,000 and above.
This then is the hub of my optimism about making the Stamp Duty the next black gold for the Federal Government. Of course, this is not without its challenges. However, I am upbeat that my team and I are poised to scale the huddles, and to, as a matter of national interest and patriotic zeal, ensure that tax revenue, in deed, the Stamp Duty becomes the next black gold.
Muhammad Nami
Executive Chairman
Federal Inland Revenue Service
Breaking
Senator Ifeanyi Ubah dies at 52
The Senator representing Anambra South in the National Assembly, Ifeanyi Ubah, is dead.
Ubah, who was the Chief Executive Officer of Capital Oil, was said to have died in a hotel in London, the United Kingdom, on Saturday.
He would have been 53 on September 3.
Senate spokesperson, Yemi Adaramodu, confirmed Ubah’s death to our correspondent on Saturday.
He said, “It’s confirmed, but I am sending an official statement soon.”
Ubah, who was re-elected into the 10th Senate under the Young Peoples Party, had last year defected to the All Progressive Congress.
In September 2022, Ubah escaped assassination when he was attacked by gunmen on his way to Nnewi in Enugwu-Ukwu in Anambra State.
Breaking
JUST IN: Edo state Assembly impeaches Deputy Governor Shaibu
The Edo State House of Assembly, on Monday, impeached the state’s Deputy governor, Comrade Philip Shaibu.
The impeachment followed the adoption of the report of the seven-man investigative panel set up by the Assembly to probe allegations of misconduct against Shaibu.
Breaking
JUST IN: Olubadan of Ibadanland, Oba Lekan Balogun joins ancestors at 81
The Olubadan of Ibadanland, Oba Lekan Balogun has joined his ancestors after a brief illness.
He joined his ancestors at the age of 81.
It was gathered that the late monarch was taken to the hospital Wednesday morning having stayed indoor throughout Tuesday on account of slight malaria fever, though, he was hail and hearty on Monday during which he personally received few guests that paid him congratulatory visits on his second year anniversary on that day.
Making this announcement was the Baba-Kekere Olubadan and his younger brother, Dr Kola Balogun in a statement by the Personal Assistant (Media) to the late monarch, Oladele Ogunsola.
According to the statement, Dr. Balogun disclosed that Oba Balogun would be buried at his Aliiwo ancestral home by 4.00pm on Friday according to Islamic rites just as he said that the State Governor Seyi Makinde, though already verbally informed, would be formally notified early in the morning.
The late Olubadan was the first most educated to have emerged as Ibadan monarch, a British trained P.hd holder, a former university lecturer, former member of management staff of Shell British Petroleum, former gubernatorial candidate of the defunct Nigeria People’s Party, NPP, former Senator and a successful business man.
His last official outing was the Olubadan Advisory Council’s meeting which he presided over last Saturday where the decision to derobed Mogaji Akinsola, Olawale Oladoja was taken.
He however, on Tuesday instructed the Ekerin Olubadan, Oba Hamidu Ajibade to midwife a small committee to deliberate on last Friday’s decision on what should be the position of Ibadan Zone in the proposed newly reconstituted Oyo State Council of Obas and Chiefs.
The decision of the small committee was earlier on Thursday ratified by the Olubadan Advisory Council at a meeting presided over by Otun Olubadan and the former governor of Oyo State, High Chief Rashidi Ladoja and was to be taken to the late Oba Balogun for his signature Friday morning so as to meet the deadline for submission to the state Commissioner for Local Government and Chieftaincy Matters later in the day.
The late Olubadan is survived by wives, children and grandchildren.
Announcing the passage of the monarch, Governor Makinde, in a statement, stated that Olubadan, who joined his ancestors late Thursday evening at the University College Hospital, UCH, Ibadan, described him as an epitome of royal excellence and a great achiever, who made great marks on Ibadanland in just a little over two years of his reign.
He expressed his condolences to the Olubadan-in-Council, the Oyo State Traditional Council and the people of Ibadanland and Oyo State, praying to God to grant repose to the soul of the deceased monarch.
Makinde said: “With total submission to the will of God, I announce the passing unto glory of our father, His Imperial Majesty, Oba Dr. Mohood Lekan Balogun, Alli Okunmade II, the 42nd Olubadan of Ibadanland.
“A mighty Iroko has fallen; Oba Dr. Balogun has joined the ancestors.
“In Kabiyesi, Ibadanland had a cosmopolitan and well-experienced Olubadan, who made indelible marks on the sands of history and achieved greatly within a short while.
“On behalf of the Government and good People of Oyo State, I condole with the immediate family of the Oba Dr. Balogun, the Olubadan-in-Council, the Oyo State Traditional Council and the people of Ibadanland.
“It is my prayer that God grants repose to the soul of our late monarch.”
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