The document discusses the administration of stamp duties in Nigeria. It analyzes relevant laws including the Stamp Duties Act, Federal Inland Revenue Service Establishment Act, and Nigerian Postal Services Act. The key points are: 1) The Stamp Duties Act and FIRS Act vest the administration of stamp duties collected by the Federal Government in the Federal Inland Revenue Service, not the Nigerian Postal Service. 2) The Nigerian Postal Service Act empowers NIPOST to issue postage stamps but does not grant it authority over stamp duties administration. 3) Using postage stamps to denote stamp duties paid does not mean paying duties to NIPOST. It only signifies the

1. THE ONGOING CONUNDRUM ON THE USAGE OF POSTAGE STAMP IN
DENOTING STAMP DUITIES
This article seeks to review the recent clamour for the involvement of the Nigeria Postal
Service in the administration of Stamp Duties Act. It reviews the legality of such clamour
and proffers solutions to the revealed legal challenges.
Definitions of Stamp Duties
The term “stamp duties” is madeup of two word namely Stamp and Duties. The word duty
has been defined as “ a tax imposed on a commodity or transaction”.1
Stamp on the other
hand can bedefinedas a mark for use as evidence of the passing of weighing or measuring
equipment as fit for use for trade, whether applied by impression, casting, engraving,
etching, branding, or otherwise howsoever construed accordingly2
The Black’s Law Dictionary defined Stamp Duties as tax raised by requiring stamps sold
by the government to be affixed to designated documents, thus forming part of the
perpetual revenue.3
According to Blackstone:
A fifth branch of the perpetual revenue consists in the stamp
duties, which are a tax imposed upon all parchment and paper
whereon any legal proceedings, or private instruments of
almost any nature whatsoever, are written; and also upon
licenses….and pamphlets containing less than six sheets of
paper. These imposts are vary various, according to the nature
of the thing stamped, raising gradually from a penny to ten
pounds4
A Nigerian author opined that stamp duties are taxes payable on executing a written
agreement or document for the purpose of giving them legal effect and tenability in the
court of law. It can also be seen as duties levied upon the issue of official documents such
as passports, deeds, contracts for the transfer of ownership, etc Usually, stamp duties are
“levied” by way of stamp being fixed to the document in question5
The Stamp Duties Act does not define Stamp Duties; rather there are definitions for
“Stamp” and “Duty” respectively. The Act defines “Stamp” as a stamp impressed by means
1 The Black’s Law Dictionary,9th Edition page581
2 Words and Phrases Volume 5, Butterworths London 1970, page 106
3 Ibid atPage 1535
4 1 WilliamBlackstone,Commentaries on the Laws of England 312-13[1765]
5 Tejutax Reference Book, Volume 2 page 1899

2. of a die as an adhesive stamp for denoting any duty or fee while “Duty” is defined as “any
stamp duty for the time being chargeable under this or any other Act and also includes
any feechargeable hereunder”. Of significance is also the charging provision of the Stamp
Duty Act which provides that “ …..duties shall be charged upon the several; instruments
specified in the Schedule to this Act shall be several duties set out in the said Schedule…”.
This suggests that what is actually charged under the Act are duties, the stamp merely
used in denoting the amount of the charged duties payable by the taxpayer.
In the United Kingdom the main Act regulating Stamp Duties is the Stamp Duties
Management Act 1891 also does not contain the definition of Stamp Duties but similar to
what obtains in Nigeriaalso separately defined stamp and duties. The UK Act definesduty
as “any stamp duty for the time being chargeable by law” while stamp is defined under
the Act to means “as well a stamp impressed by means of a die as an adhesive stamp for
denoting any duty or fee”.
Types of Stamping under the Stamp Duties Act.
Section 5 of the Stamp Duties Act provides as follows:
All duties for the time being chargeable under the provisions
of this Act upon any instruments shall be paid and denoted
according to the provisions in this Act, and, except where
express provision is made to the contrary in this Act or by the
regulations made thereunder are to be denoted by impressed
stamps only.
(2) Where the duty may be denoted by adhesive stamps,
postage stamps may, subject to the provisions of any Act or
regulation, be used for the purpose.
(3) Every instrument written upon stamped material shall be
written in such a manner, and every instrument partly or
wholly written before being stamped shall be so stamped, that
the stamp shall appear on the face of the instrument and
cannot be used or applied to any other instrument written
upon the same piece of material.
(4) No impressed or embossed stamp or stamps made by
means of a die shall be used in any manner except upon the
document upon which it was originally impressed, embossed
or stamped.

3. (5) The amount of the duty upon any instrument may be
denoted by several stamps, and stamps of greater value than
is required may be used upon any instrument.
The above highlighted provision shows that stamping can be in form of adhesive stamps
or die. Die is defined under the Act to includes any plate, type, tool, or implement
whatever used under the direction of the Minister of Finance or his counterpart in the
State, as the case may be, for expressing or denoting any duty, or rate of duty, or the fact
that any duty, or rate of duty or penalty has been paid, or that an instrument is duly
stamped, or is not chargeable with any duty, or for denoting any fee, and also any part of
any such plate, type, tool or implement.6
Administration of the Stamp Duties Act in Nigeria
Section 3(2)-(3) of the Act provides that:
The duties charged under this Act shall be accounted for in a
manner to be prescribed in proper case by the Minister after
consultation with the Governors of the States.
(3) The functions under this Act shall be respectively confined to
matters in respect of which the Government of the Federation
and the Government of such State shall be competent to make
laws:
Provided that nothing herein shall be interpreted as preventing
the appointment by the President and by a Governor of the same
person to be both a Federal and a State commissioner under
section 6 of this Act
Section 4 further provides that the Federal Government shall be the only authority to
impose, charge and collect duties upon instruments specified in the schedule to the Act if
such instrument relates to matters executed between a company and an individual, group
or body individuals while the State Government shall collect duties in respect of
instruments executed between persons or individuals at such rates to be imposed or
charged as may be agreed with the Federal Government. Specifically for the purpose of
care and management of Stamp Duties payableto the two level of government, the Stamp
Duties Act provides that the relevant Civil Service Commission may appoint one or more
officers who shall be commissioners of stamp duties and shall have the care and
management of the duties to be taken under the Act.7
It is further provided that when
appointing a commissioner, the President or Governor, as the case may be may signify
6 Section 1 of the Stamp Duties Act 2004
7 Section 6(1) of the Stamp Duties Act 2004

4. that the duty of such commissioner shall be confined to adjudication under section 16 of
the Act. This means that stamp duties as stipulated under the Act is administered by
Commissioners appointed by the President of Governor as the case may be.
Administration of Stamp Duties under the Federal Inland Revenue Service
[Establishment] Act
The administration as it relates to the duties accruable to the Federal Government has
been modified by the Federal Inland Revenue Service [Establishment] Act 2004[FIRESA]
which created the Federal Inland Revenue Service. The FIRESA after creating the Federal
Inland Revenue Service8
[FIRS or the Service] provides that the Service shall have such
powers and duties as are conferred by the FIRESA or by any other enactment or law on
such matters on which the National Assembly has power to make law.9
It is also further
provided under the FIRESA that the object of the FIRS shall be to control and administer
the different taxes and laws specified in the First Schedule to the FIRESA.10
The FIRESA
also provided that some of the powers and functions of the Service shall be to11
:
a. Assess persons including companies, enterprises chargeable with tax
b. Assess, collect recover and pay to the designated account any tax under provision
of the FIRESA or any other enactment or law.
To ensure any avoidance of doubt as to the powers of the FIRS with respect to Stamp
Duties Act and administration, the FIRESA provides, unequivocally, that the Service shall
have power to administer all the enactments listed in the First Schedule to the Act.12
One
of the laws listed under the First Schedule to the FIRESA is the Stamp Duties Act. This
means that the FIRS is the only authority with power to assess and collect the tax imposed
under the Stamp Duties Act. Section 3 of the Stamp Duties Act provided that the duties to
be charged upon the several instrument will be as stipulated in the Act. This means that
the Act is about imposition of Stamp Duties. Stamp Duties has already been defined taxes
imposed on executed documents.
Power of the NIPOST with respect to Stamp Duties
The Nigerian Postal Services is established under the Nigerian Postal Services Act
[NIPOST Act] with the exclusive privilege to:
a. Conveying all letters from one place to another where postal
communication has been established; an
b. Performing all the incidental services of receiving, collecting,
sending, dispatching and delivering, written and printed matter,
8 Section 1 of the FIRESA
9 Section 1(3) of the FIRESA
10 Section 2 of the FIRESA
11 See generally Section 8 of the FIRESA
12 Section 25 of the FIRESA

5. parcels and like materials from any one place to another, where
postal communications shall have been established.13
The NIPOST Act also outlined the functions of the NIPOST to include14
:
a. Develop, promote and provide adequate and efficiently co-ordinated and economic
postal services at fair and reasonable rates and fees;
b. Maintain an efficient system of collection, sorting and delivery of mail nationwide;
c. Provide various types of mail services to meet the need of different categories of
mail users;
d. Establish and maintain postal facilities of such character and in such location
consistent with reasonable economic as will enable the generality of the of the
public to have ready access to essential postal services.
The NIPOST Act further provides that “in the exercise of its function under the Act”, the
Postal Services shall have some specific powers enumerated under Section 5 of the Act.
Some of these powers as are relevant to the subject of discussion are power to:
a. prescribe the amount of postage stamps and the manner in which it is to be paid
b. provide postage stamps and other stamped papers, cards and envelopes and to
provide such other evidence of payment of postage and fees as may be necessary
or desirable
c. explore additional sources of postal revenue
d. provide and establish non postal or similar services
e. provide such miscellaneous services as may be authorised by the Federal
Government
The power to issue stamps is vested in the Post Master General who may cause to be issued
stamps among other things15
. The Act further provides that the Post Master General may
appoint persons to retail stamps under such conditions as regards remuneration, or
otherwise, as he may prescribe16
. The Act defines postage stamp as “ any label, stamp or
stamped impression for denoting any rate of postage payable in respect of postal articles
and includes adhesive postage stamps and stamped printed, embossed, impressed or
otherwise indicated on any envelope, wrapper, postcard or other article, whether such
postage stamp is issued under this Act or by Government of any country.
The Intention of the NIPOST Act an FIRESA
The long title of the NIPOST Act states that the Act was to provide for the Nigerian Postal
Services, and for matters connected therewith. All the relevant provisions of the Act as
13 Section 1(2) of the NIPOST Act.
14 Section 4 of the NIPOST Act
15 Section 34 of the NIPOST Act
16 Section 34(2) of the NIPOST Act

6. afore highlighted are tailored towards this intention of the Act as stated in its long title.
There is nothing in these provisions to suggest that the NIPOST Act or any other law for
that matter intends the Nigerian Postal Service [NIPOST] to be involved in any way in the
administration of Stamp Duties or any tax for that matter. Although the NIPOST Act
empowers NIPOST to carry out some of the activities particularly those stated above,
Section 5 of the NIPOST Act clearly stipulated that those powers are to be “ in exercise of
its function under this Act” and Stamp Duties administration is not one of these function.
An administrative body must exercise its powers basically for the purpose of statutorily
definedfunctions and for nothing else. Exercising the powers for the purpose of functions
outside those stipulated under the relevant law will be ultra vires the authority exercising
such powers.
The Intention under the Stamp Duties Act
The general law is that tax statutes are to be strictly interpreted. In the case of Cape Brandy
v IRC17
it was held that:
In a taxing Act, clear words are necessary to tax the subject. But it is often
endeavoured to give to this maxim a wide and fanciful construction. It does
not mean that words are to be unduly restricted against the Crown or that
there is to be any discrimination against the Crown in such acts. It means
this, I think, it means that in taxation you have to look simply at what is
clearly said. There is no room for any intendment, there is no equity about
tax, you read nothing in; you imply nothing, but you look fairly at what I
said and at what is said clearly and that is tax
The intention of the Act with respect to administration of Stamp Duties under the Stamp
Duties Act is clearly evinced in Section 3 of the Stamp Duties Act which provides that
stamp duties charged under the Act are to be as stipulated in the Schedule to the Act.
Moreover the long title of the Act provides that it was made for the purpose of levying
stamp duties on certain documents. Section 5 further provides that all duties for the time
being chargeable under the provisions of the Act shall be paid and denoted according to
the provisions of the Act. This means that except the Act provides to the contrary,
administration of stamp duties must be as stipulated under the relevant laws. There is no
provision either under the Stamp Duties Act or the FIRESA that vests the Nigerian Postal
Service with the power or functions to administer Stamp Duties in Nigeria. A review of
the provisions of the of the Stamp Duties Act and the FIRESA reveals the authorities
saddled with administration of stamp duties are the Stamp Duties Commissioners
appointed by the State Government in relation to duties collectible by the state
17
[1921] 12 Tax Cases 358

7. governments and the Federal Inland Revenue Service as provided in the FIRESA in
respect of duties collectible by the Federal Government.
Is there any conflict between the powers of the NIPOST and that of the FIRS in respect of
Stamp Duties?
A review of the manner of payment of stamp duties under the Stamp Duties Act will
unravel this question. The Stamp Duties Act provides that all duties payable under the
provisions of the Act shall be paid and denoted in accordance with the provisions of the
Act[and not any other Act]. Therefore stamp duties are to be charged, paidfor and denoted
in accordance with the provisions of the Stamp Duties Act. The Act further stated that
except where express provision is made to the contrary in the Act or by regulation made
thereunder, all duties charged and payable under the provisions of the Act are to be by
impression stamps only.18
This means that impression stamps are the primary means of
denoting the duties payable under the Act on the documents subject to stamp duty.
Postage stamp only comes in as form of denoting certain duties. Thus Section 5(2)
provides that where duty may bedenoted by adhesive stamps, postage stamps may, subject
to the provisions of any Act or regulations, be used for the purpose. The source of conflict
can be said to be the phrase “any Act or regulations”. It can be argued that the any Act
will mean the provisions of the NIPOST Act. However, the NIPOST Act is not on stamp
duties per se but on postal matters. The NIPOST Act only provides for issuing and selling
of postage stamps. It has nothing to do with imposing, charging, collection and
administration of stamp duties. The term ”subject to the provisions of any Act” as it relates
to the NIPOST Act and using of postage stamps to denote stamp duties simply means that
using of postage stamps to denote stamp duties must be in accordance with the provisions
of the NIPOST Act on issuing and selling of postage stamps. It must be also be madeclear
that what the postage stamps are used for under the Stamp Duties Act is to denote the
duties payable. The term denote” has been defined as “ to be a sign of something”, or “to
mean something”. 19
Therefore using of adhesive stamps or postage stamps is only to
signify that stamp duties have been paid. It does not translate to having to pay the duties
to the Nigerian Postal Service. In other words, adhesive or postage stamps pasted on a
document simply denotes that the proper duty has been paid. It should be noted that it is
not mandatory that adhesive or postage stamp be used. Section 5 states that duty may be
denoted by adhesive stamp. This means that it is not compulsory for postage stamps to be
used. In summary, it is submitted that there is no conflict between the powers of NIPOST
and tax authorities with respect to statutory powers as it relates to stamp duties. While the
tax authorities are the bodies saddled with the power to assess and collect stamp duties,
the duties assessed and collected by the tax authorities may be denoted by adhesive or
postage stamps issued by the NIPOST. The powers of each body are clearly delineated.
18 Section 5(1) of the Stamp Duties Act.
19 Oxford Advanced Learner’s Dictionary,International Student’s Edition,page 390.

8. While a party assesses and collect the imposed duties, the other sells the material used in
denoting or showing that the assessed duty has been paid.
Nature of documents and transactions coveredby Section 5(2) and Section 89 of the Stamp
Duties Act
Section 5(2) of the Stamp Duties act provides that where the duty may be denoted by
adhesive stamps, postage stamps may, subject to the provisions of any Act or regulation,
be used for the purpose. The Act also provided for how adhesive stamp is to be used in
denoting the duty payable on a document. It states that
(1)An instrument, the duty upon which is required or permitted by
law to be denoted by an adhesive stamp, shall not be deemed duly
stamped with an adhesive stamp unless the person required by law
to cancel such adhesive stamp cancels the same by writing on or
across the stamp his name or, initials, or the name or initials of his
firm, together with the true date of his so writing, or otherwise
effectively cancels the stamp and renders the same incapable of
being used for any other instrument or for any postal purpose or
for payment of a telegram:
Provided that when the person required by law to cancel an
adhesive stamp is an illiterate person, the stamp shall be deemed
to be sufficiently cancelled, if the mark of such person, together
with the true date of the making thereof, is written on or across
such stamp.
(2) When two or more adhesive stamps are used to denote the duty
upon an instrument each or every stamp shall be cancelled in the
manner aforesaid.
(3) Every person who, being required by law to cancel an adhesive
stamp neglects or refuses duly and effectively to do so in the
manner aforesaid, shall be guilty of an offence and liable on
conviction to a fine of twenty naira20
The Act contains provisions stipulating the various documents the duties payable upon
which could be denoted with adhesive stamps or postage stamp. The documents, under
the Act which duty payable upon them can be denoted with adhesive stamp are:
a. Agreements: the Act provides that the duty of ten kobo on an agreement may be
denoted by an adhesive stamp which must be cancelled by the person by whom the
agreement is first signed before he delivers it out of his hands.21
20 Section 11 of the Stamp Duties Act 2004.
21 Section 28 of the Stamp Duties Act

9. b. Local and Foreign Bills of Exchange-the duty of two kobo on a bill of exchange,
payable on demand or at sight or on presentation or within three days after date or
sight, may be denoted by an adhesive stamp, which, where the bill is drawn in
Nigeria, shall be cancelled by the person by whom the bill is signed before he
delivers it out of his hands, custody or power.22
Also every person into whose hand
any bill of exchange or promissory note, drawn or made out of Nigeria, comes in
Nigeria before it is stamped shall, before he presents for payment, or endorses,
transfers or in any manner negotiates, or pays the bill or note, affix thereto a
proper adhesive stamp or proper adhesive stamps of sufficient amount, and cancel
every stamp so affixed.
c. Charter Parties-The duties payable on Charter Parties agreements can be denoted
by adhesive stamps23
.
d. Duplicate and counterparts-duty payable on duplicate or counterparts of a
document can be denoted with an adhesive stamp24
e. Certain Leases-the duty upon can instrument chargeable with duty as lease for any
definite term less than a year and the duty upon the duplicate or counterpart of
any such instrument, may be denoted by an adhesive stamp which shall be
cancelled by the person by whom the instrument is first executed.25
f. Contract Note- All stamp duties on a contract note may be denoted by an adhesive
stamp which is to be cancelled by the person by whom the note is executed.26
g. Notarial acts: The duty upon a notarial act and upon the protest by a notary public
of a bill of exchange or promissory note may be denoted by an adhesive stamp
which shall be cancelled by the notary27
.
h. Warrant for Goods: The duty upon a warrant for goods may be denoted by an
adhesive stamp, which shall be cancelled by the person by whom the instrument is
made, executed or issued.28
i. Receipts: Section 89 of the Stamp Duties Act provides as follows:
(1)For the purposes of this Act, the expression “receipt”
includes any note, memorandum, or writing whereby
any money amounting to four naira or upwards, or any
bill of exchange or promissory note for the money
amounting to four naira or upwards, is acknowledged or
expressed to have been received or deposited or paid, or
whereby any debt or demand, or any part of a debt or
22 Section 39 of the Stamp Duties Act
23 Section 46-47 of the Stamp Duties Act
24 Section 66 of the Stamp Duties Act
25 Section 71 of the Stamp Duties Act
26 Section 50(4) of the Stamp Duties Act
27Section 83 of the Stamp Duties Act
28 Section 99(2) of the Stamp Duties Act

10. demand, of the amount of four naira or upwards, is
acknowledged to have been settled, satisfied, or
discharged, or which signifies or imports any such
acknowledgement, and whether the same is or is not
signed with 2the name of any person.
(2) The duty upon a receipt may be denoted by an
adhesive stamp which is to be cancelled by the person by
whom the receipt is given before he delivers it out of his
hands.
Procedure for denoting duties with adhesive stamps
As earlier pointed out, the Stamp Duties Act contains the procedure for denoting Stamp
Duties with adhesive stamps. The Act specifically provides for who is to denote or affix
the document with stamps. It is also clear that the stamp must be cancelled by either the
Commissioners or those who first executes the documents. Section 12 of the Stamp Duties
Act provides that every instrument first executed in Nigeria, which by law may be or is
required to be stamped with an adhesive stamp, shall be stamped on or before its first
execution, and such stamp shall be cancelled by the person by whom the instrument is
first executed and at the time of such execution. There is however a proviso that where an
instrument is prepared or attested by or executed before a commissioner of oaths, a justice
of the peace or a notary public, such stamp shall be cancelled by such commissioner of
oaths, justice of the peace or notary public at the time of its first execution. The
implicationis that where duty payable on a document has been paidand the duty denoted
by adhesive stamp, such stamp must be cancelled by the person by whom the instrument
is first executed and at the time of such execution. In contrast however, the Act provides
that in the case of charter party agreement, the duty upon a charter party may be denoted
by an adhesive stamp, which shall be cancelled by the person by whom the instrument is
last executed, or by whose execution it is completed as a binding contract.
Under Section 16 of the Act, it is provided that an adhesive stamp for the fee prescribed
under Section 15 and 66 of the Act shall be supplied to the Commissioner by the person
requiring the certificate at the time when the application for certification by the
Commissioner is made. This means that a private person is empowered to purchase the
adhesive stamp used in denoting duties on documents. Similarly, a person against whom
an appeal is decided is required to supply the difference in duties in form of stamps which
shall be affixed to the documents in the presence of the Commissioners29
. In the case of
bill of exchange while the Act is silent on who is to affix the adhesive stamp with respect
to locally drawn bill of exchange, every person into whose hand any bill of exchange or
promissory note, drawn or made out of Nigeria, before it is stamped, shall before he
29 Section 21(4)(b) of the Stamp Duties Act.

11. presents it, affix thereto a proper adhesive stamp or stamps of sufficient amount and
cancel every stamp so affixed30
.
Similarly, where an unstamped bill of exchange is presented to a person[the drawee], the
person is empowered to affix on the bill two kobo worth of adhesive stamp and recover
the duty so paid from the value of the bill. However, this does not relieve the drawer from
the penalty and duty originally payable on the bill.
In summary, different people are fixed with the responsibility to affix adhesive stamps to
documents to denote the duties payable on such a document. The provisions dealing with
each of the documents will need to be examined to determine the person whose duty it is
to affix the stamps to the document.
Enforcement Challenges
The Stamp Duties Act is bedeviled with various enforcement challenges in respect of
denoting duties with adhesive stamps. These challenges are highlighted below.
a. Determination of whether duties are different from the denoting stamps
The Act is not clear on whether there is a difference between payment of duties
and payment for stamps themselves. In other words does affixing of stamps on a
charged document amount to payment of duties. The act provided that duties shall
be paid on documents with adhesive stamps used to denote the duties paid. It has
earlier been shown that stamps used in denoting the duties do not amount to duties
themselves but only signification of the payment of duties. There is therefore a
need to clarify whether there should be payment for duties differentfrom payment
for the denoting stamps particularly where the stamps are to be supplied by the
taxpayer as stipulated in some provisions of the Act. Also where a taxpayer is to
affix stamp of certain amount to a document as stated in the Act, does that end the
issue or is the taxpayer to pay duties equivalent to the stamp to tax authorities. This
question is reinforced by the fact that duties are payable to the relevant authorities
of the level of government concerned. Stamp Duties are payable to tax authorities
and not to any other person including those selling postage or adhesive stamps
where the tax is to be denoted by stamps. Therefore, does the purchasing of
adhesive stamp by the taxpayer equal payment of duties even when the money for
the stamp is not paid to the relevant tax authorities as stipulated under the Stamp
Duties Act.
b. Immaterial Duty Amounts
The Stamp Duties Act is one of the oldest tax laws in Nigeria and has undergone
very minimal review and amendment to bring the Act up to par with current
30 Section 40 of the Stamp Duties Act 2004

12. economic realities. The amount of duties charged under the Act are so minimal
that breach of the Act is even more beneficial than compliance with the provisions
of the Act. This matter is not further helped by the penalties for non-compliance
under the Act. It may be that as at the time when the Act was passed into law, the
amounts stated in the Act were significant, however this is not the case today.
Therefore insignificant amount of duties and penalties under the Act makes
enforcement of the tax very difficult.
c. Lack of Proper Regulation
Section 2 of the Act provides that duties charged under this Act shall be accounted
for in a manner to be prescribed in proper case by the Minister after consultation
with the Governors of the States. Section 115 of the Act also confers powers on the
President and Governor to make regulations in relation to Stamp Duties. However
there is no such regulations in existence as at the time of this paper.
d. Silence on when Postage Stamp may be used
The use of postage stamps for the purpose of denoting Stamp Duties is to be made
subject to the provisions of any Act or regulation. However, apart from the mention
of postage stamp in Section 5 of the Act, there is no other provision mandating the
use of postage stamp for denoting stamp duties in the Act. Moreover the NIPOST
Act does not mandate use
Power to make Regulation under the Stamp Duties Act
Section 2(1) of the Stamp Duties Act provides that the duties charged under this Act shall
be accounted for in a manner to be prescribed in proper case by the Minister after
consultation with the Governors of the States. The Act also provides that:
In addition to the powers conferred on him by sections 15 and
105 of this Act, the President and the Governor of a State may
make regulations relating-
(a) to the custody of the dies to be used under this Act;
(b) to the circumstances in which allowance shall be made for
spoiled stamps;
(c) to the accounting for the revenue derived from stamp
duties;
(d) to the substitution of adhesive stamps for impressed
stamps, or of impressed stamps for adhesive stamps, or of
revenue stamps for postage and revenue stamps;
(e) to the manner in which and the persons by whom
impressed stamps shall be affixed to documents; and

13. (f) to the further and better carrying into effect of the objects
and purposes of this Act.31
It is further provided that
(1) The National Assembly may by resolution increase,
diminish or repeal the duty chargeable under any of the
heads specified in the Schedule to this Act in respect of the
documents regarding which the Government of the
Federation is competent to makelaws, and in respect of any
other matter within such competence may add new duties
or otherwise add to, vary or revoke the Schedule.32
Despite these provisions, there is no such regulations or legislative review of the Stamp
Duties Act by the stipulated authorities. While the issues raised with respect to use of
postage stamps for denoting stamp duties can be resolved through regulations issued
under Section 115 of the Act, the dismal duties and penalty rates can be taken care of
through legislative review of the Act by the National Assembly.
The Place of Postage Stamps for denoting Stamp Duties
Section 5(1) of the Stamp Duties Act provides that “all duties for the time being chargeable
under the provisions of this Act upon any instruments shall be paid and denoted
according to the provisions in this Act, and, except where express provision is made to the
contrary in this Act or by the regulations made thereunder are to be denoted by impressed
stamps only”. This means that duties imposed under the Act is primarily payable and
denoted by impressed stamps only. The Act however provides that where duty may be
denoted by adhesive stamps, postage stamps may, subject to the provision of any Act or
regulation, be used for the purpose. The provision here suggest that there is a difference
between adhesive stamp for duties purposes and postage stamp. This clarifications
becomes even clearer by virtue of Section 115(d) which provides that the President and
the Governor of a state shall have power to make regulations relating to, among other
things, the substitution of adhesive stamps for impressed stamps, or of impressed stamps
for adhesive stamps, or of revenue stamps for postage and revenue stamps. The provisions
of Section 5 that postage stamps is to be used instead of adhesive stamps subject to the
provisions of any Act or regulation, presupposes the existence of “any Act or regulations”
regulating usage of postage stamps as adhesive stamps. However, there is no such Act or
regulation for the purpose of regulating usage of postage stamps as adhesive stamps. The
NIPOST Act which is the main law regulating issuance and usage of postal stamps does
not provide for usage of postal stamps for denoting stamp duties. Moreover, the Stamp
Duties Act only mentions postage stamp twice that is in Section 5 and 115 and none of
31 Section 115 of the Stamp Duties Act
32 Section 116 of the Stamp Duties Act

14. these sections provides the procedure for usage of postage stamp as adhesive duties stamp.
It can therefore be argued that until an Act or regulation is made concerning usage of
postal stamps as duties adhesive stamp, postage stamps cannot be used for the purposes
of denoting stamp duties. The law is that taxation is statutory and anything not contained
in the relevant law is absolutely inapplicable. Where there is no provision in our laws on
the usage of postal stamps in denoting stamp duties, then it will unlawful and a negation
of age long principle of tax laws to expect taxpayers to comply with expectation.
Moreover, the Stamp Duties Act and FIRESA are clear that it is tax authorities that have
the power to administer Stamp Duties Act and not the NIPOST. Using of postage stamps
will imply paying stamp duties to the NIPOST which is not a body established for tax
administration in the first place.
Perhaps this conundrum can be solved by regulations allowing the tax authorities to
purchase postage stamps in bulk for issuance to taxpayers for stamp duties purposes. This
will ensure that postage stamps can be used in denoting stamp duties and that the tax is
at the same time being administered by those empoweredunder the law to administer the
tax.
EMEKA IHEBIE