Ubani Tells State Governors to Demand for Stamp Duties Revenues

Governors of Nigeria’s 36 states have been urged to unite, stand up and collectively demand for the Stamp Duties’ revenues without fear or favour.

The Chief Executive Officer/Managing Consultant, Maroct Consultants Group, Chief Ubani Uzoma Francis, made this call while delivering a paper in Abuja on ‘Stamp duties: Practical Approach to Fostering United Front on Issues Bothering On the Collective Interest of the States,’ during a recent meeting of the Nigerian Governors’ Forum.

He opined that all the stamp duties’ revenues belong to the different states of the Nigerian federation, adding that the Federal Government of Nigeria through the Federal Inland Revenue Service (FIRS), is only an agent to states on the collection of stamp duties.

He said, “We, therefore, enjoin you, the different states of the Federation, to form a united front and demand for the stamp duties revenue that rightly belong to you by the very clear provisions of the Constitution of the Federal Republic of Nigeria, 1999, as amended.”

Ubani, also a member, Taxation Standards and Practice Monitoring Committee of Chartered Institute of Taxation of Nigeria, stated that the different states of the Federation should take note that, in respect of the collection of stamp duties/levies revenue in Nigeria, the states are the principals; while the Federal Government through the FIRS is only “constitutionally designated collection agent.”

Ubani said consequently, the FG/FIRS is accordingly mandated by the provisions of Section 163 (b) of the Constitution of the Federal Republic of Nigeria, 1999, as amended, which, according to him, means that FG/FIRS is obliged to follow the strict dictates and spirit of the said constitutional provisions.

He stated that Nigeria’s operative constitution, which is the 1999 Constitution of the Federal Republic of Nigeria, as amended, made provision for different levels of authorities, responsibilities, and powers, for each level of government and how to finance the carrying out of its responsibilities for assigned activities.

He stated that there are various statutory legislations in place to enable the various tiers of government to carry out their respective duties.

He explained that one of such legislations is the Stamp Duties Act, CAP S8, LFN, 2004, as amended, which makes provisions for the imposition and collection of revenue from Stamp Duties in respect of instruments made between companies, on one hand, and individuals, on the other.

He argued that Section 4 (1) of the Stamp Duties Act, 2004, as amended by Section 53 (a) of the Finance Act, 2019, empowered the Federal Government of Nigeria, through the FIRS, to collect duties derivable from instruments initiated and executed or transactions initiated and carried out between two companies, and between a company and an individual, group or body of individuals i.e. corporate bodies.

He added that while Section 4 (2) of the Stamp Duties Act, as amended by Section 53 (b) of the Finance Act, 2019, empowered the relevant tax authorities in different states of the Federation, to impose and collect duties on instruments initiated and executed and/or transactions initiated and carried out between persons or individuals, whether electronically done or otherwise by bank tellers or other documents within each of the different States territories.

Ubani stated that Section 4 (1) and (2) of the Stamp Duties Act, 2004, as amended, clearly stated what is collectible between the Federal Government of Nigeria, on one hand, and the different States of the Federation, on the other.

Ubani said, “The different States of the Federation, should take note that, in respect of the collection of stamp duties/levies revenue in Nigeria, the states are the principals; while the FG through the FIRS, is only “Constitutionally designated collection agent”. Therefore, the FG/FIRS is accordingly mandated by the provisions of Section 163 (b) of the Constitution of the Federal Republic of Nigeria, 1999, as altered, which means that FG/FIRS is obliged to follow the strict dictates and spirit of the said Constitutional Provisions. The orchestrated deception, unfair, and unwholesome collection practices should STOP, particularly in the payment of the net proceeds of the duties/levies collected, to the different states of the Federation in compliance with the Constitution which is the supreme law of Nigeria.

 “State Governments should be very careful in engaging technical support/advisers in the area of Stamp Duties Revenue Head, as many that profess they know, are all misunderstanding and misinterpreting the provisions of the Stamp Duties Act and the provisions of the Constitution of Federal Republic of Nigeria, 1999, as amended, as it concerns stamp duties.

“The different State Governments are strongly advised and enjoined, as a matter of urgency, to seriously-overhaul, review and domesticate Stamp Duties and Capital Gains Laws, in their various States, for effective and optimal collection of stamp duties and capital gains tax revenue in their different States.”