The Nigerian Stock Exchange (NSE) has announced the revision of Stamp Duty on securities transactions to 0.08% from 0.075%, effective 7 December 2020. The change is necessitated by the classification of Contract Notes as an ad valorem tax by the Federal Inland Revenue Service (FIRS).
As a responsive self-regulatory organization, The Exchange is committed to enforcing rules and ensuring compliance with regulations and other applicable government requirements.
While it had maintained a stamp duty rate of 0.075% in line with what was obtainable in the Nigerian capital market, it is imperative that the FIRS’ stamp duty regime of 0.08% on securities transactions is applied. To this end, the Central Securities Clearing System Plc (CSCS) will adjust its system to implement the automated deduction of the Stamp Duty rate of 0.08% from Monday, 7 December 2020.
The Exchange has also issued the requisite guidance to Dealing Member Firms to put in place the necessary measures to ensure compliance and communicate this change to investors in a timely manner.
Capital market stakeholders requiring further information can refer to the market circular issued by The Exchange on 17 November 2020 captioned “Administration of Stamp Duty on Securities Transactions”, which can be accessed on The Exchange’s website at http://www.nse.com.ng. Investors are also advised to contact their respective stockbrokers for more information or clarification.