Senate Launches Probe Into Stamp Duty Revenue Amid Growing Concerns Over Transparency and Leakages

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The Nigerian Senate has begun a comprehensive investigation into the generation, collection, and utilisation of stamp duty revenue nationwide — a move lawmakers say is critical to enhancing fiscal transparency and blocking longstanding revenue leakages.

The probe, initiated during Tuesday’s plenary session, follows years of controversy surrounding the trillions of naira reportedly generated through stamp duty charges on banking transactions, real estate documentation, and other financial instruments.

Senate leaders expressed concern that despite stamp duty being one of the country’s most significant non-oil revenue sources, the federal government has yet to account clearly for how the funds are being managed, remitted, or disbursed.

According to the motion presented on the Senate floor, the investigation will examine:

The total stamp duty revenue generated over the years; Compliance by banks, financial institutions, and government agencies; Alleged diversion or mismanagement of funds and; The legal framework governing stamp duty administration.

Lawmakers argued that the probe is necessary to strengthen Nigeria’s public finance system at a time when the government is aggressively pursuing revenue reforms to reduce dependence on borrowing. “Stamp duty has become a major national revenue stream. Yet, there is no transparent record of what comes in or how it is used. This investigation is long overdue,” one senator said during the debate. The Senate Committee on Finance is expected to summon key stakeholders, including officials from the Central Bank of Nigeria (CBN), the Federal Inland Revenue Service (FIRS), commercial banks, NIPOST, and other relevant bodies. The findings of the investigation are expected to shape upcoming fiscal policies and potentially lead to reforms aimed at plugging leakages, improving accountability, and strengthening Nigeria’s revenue generation framework.