How to Calculate Stamp Duty for Property Transactions in Ogun State
Introduction
When buying, selling, or leasing property in Ogun State, Stamp Duty is one of the legal fees you must pay. It’s a government charge on documents that record transactions, especially those involving the transfer or leasing of real estate.
Understanding how to calculate Stamp Duty correctly can save you from overpaying—or worse, facing legal issues for underpayment. In this guide, you’ll learn what stamp duty is, when and how it applies in Ogun State, and how to accurately calculate it for your property transactions.
Whether you’re a buyer, seller, developer, or legal adviser, this article will help you stay compliant with the law and avoid costly mistakes during property deals.
What Is Stamp Duty?
Stamp Duty is a tax imposed on documents that effect the transfer of ownership of assets like land, houses, or leases. In Nigeria, Stamp Duty is governed by the Stamp Duties Act, and both federal and state tax authorities are involved, depending on the type of transaction.
In Ogun State, Stamp Duty is charged on:
Deeds of Assignment
Lease Agreements
Sales Agreements
Mortgage Documents
Tenancy Agreements
Property Conveyance Documents
Who Collects Stamp Duty in Ogun State?
Federal Inland Revenue Service (FIRS): Collects stamp duty on corporate transactions (if one or both parties is a company).
Ogun State Internal Revenue Service (OGIRS): Collects stamp duty on individual or private transactions, such as personal property sales or leases between individuals.
If a company is involved, pay to FIRS.
If it’s between individuals, pay to OGIRS.
Why Is Stamp Duty Important?
Legalizes your property documents.
Required for property registration at the Land Registry.
Proof of payment protects buyers/sellers in court if disputes arise.
Failure to pay may render documents inadmissible in legal proceedings.
How Is Stamp Duty Calculated in Ogun State?
Stamp Duty is calculated as a percentage of the transaction value, which is usually the purchase price or consideration stated in the agreement. In some cases, the market value may be used if the consideration is unreasonably low.
Stamp Duty Rate in Ogun State
| Transaction Type | Stamp Duty Rate |
|---|---|
| Property Sale (Individual) | 1.5% of consideration or market value |
| Lease Agreement (1-7 yrs) | 0.78% of total rent |
| Lease Agreement (7+ yrs) | 3% of total rent |
| Gift / Transfer without sale | 1.5% of market value |
| Mortgage Deed | 0.375% of loan amount |
📌 NOTE: Always verify the latest applicable rate with OGIRS, as policies may change.
Example 1: Property Sale
Property Sale Price: ₦15,000,000
Parties: Individual to Individual
Stamp Duty Rate: 1.5%
Calculation:
Stamp Duty Payable: ₦225,000
Example 2: Lease Agreement (5 years)
Annual Rent: ₦1,000,000
Duration: 5 years
Total Rent: ₦5,000,000
Stamp Duty Rate: 0.78%
Calculation:
Stamp Duty Payable: ₦39,000
Example 3: Lease Agreement (10 years)
Annual Rent: ₦800,000
Duration: 10 years
Total Rent: ₦8,000,000
Stamp Duty Rate: 3%
Calculation:
₦8,000,000 × 3% = ₦240,000
Stamp Duty Payable: ₦240,000
How to Pay Stamp Duty in Ogun State
Step-by-Step Guide:
Prepare Transaction Documents:
Sale or Lease Agreement, Deed of Assignment, etc.
Visit OGIRS or Use a Registered Lawyer:
Go to the nearest OGIRS office or work with a legal practitioner.
Submit Document for Assessment:
OGIRS assesses the value and calculates the applicable stamp duty.
Make Payment:
Payment is made to the designated OGIRS account or via online payment platforms (sometimes through REMITA).
Stamping and Endorsement:
Once payment is confirmed, the document is physically or electronically stamped and validated.
Use for Property Registration:
A stamped document is required for land registration at the Ogun State Land Registry.
What Happens If You Don’t Pay Stamp Duty?
Your document won’t be legally recognized in court.
You cannot register the property with the government.
You may face penalties, fines, or interest on overdue stamp duty.
The government can declare the transaction invalid or incomplete.
How to Confirm a Stamp Duty Payment
Always collect a receipt or stamped copy of the document from OGIRS or FIRS.
Verify authenticity through OGIRS or FIRS offices.
Keep the document safe for future legal or financial transactions.
Call to Action
Buying or leasing property in Ogun State?
Make sure your transaction documents are properly stamped and registered.
Visit your nearest OGIRS office or consult a property lawyer for assistance.
Avoid legal disputes—pay your stamp duty and get your documents stamped!
Frequently Asked Questions (FAQs)
Is stamp duty different from Land Use Charge?
Yes. Stamp Duty is a one-time tax on documents during property transfer.
Land Use Charge is an annual property tax on ownership and usage.
Can I pay stamp duty online?
In many cases, yes. Check with OGIRS or your lawyer to confirm online payment availability and authorized payment channels.
Who pays stamp duty—the buyer or seller?
Traditionally, the buyer pays stamp duty, unless otherwise agreed in the contract.
Can I negotiate stamp duty?
No. Stamp duty is a statutory tax and not negotiable. However, you can challenge an incorrect assessment if needed.
Conclusion
Stamp Duty is a mandatory and critical part of any real estate transaction in Ogun State. It not only legalizes your documents but also allows you to register your property and secure full ownership rights.
By understanding how to calculate stamp duty, you can plan better, stay compliant, and avoid costly legal setbacks. Always work with professionals—lawyers, valuers, or OGIRS officials—to ensure your transactions are handled properly.
Contact Us
Chaman Law Firm
115, Obafemi Awolowo Way,Allen Junction, Beside Lagos Airport Hotel, Ikeja, Lagos
📞 0806 555 3671, 08096888818,