Stamp duty on authorised share capital.
Stamp duty payable
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Rate applied
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Capital after duty
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The duty you pay to create capital
Every time a Nigerian company sets its authorised share capital, the state takes a small ad valorem cut on the document that records it. This is a one-off charge tied to a corporate event, not a recurring tax. The calculator multiplies the authorised share capital you enter by the rate this tool applies, which is 0.75 percent, and shows the duty payable on that capital. Authorised share capital is the ceiling of shares the company is permitted to issue, set in its memorandum, and it is that headline figure the duty attaches to.
Two moments it falls due
The charge surfaces at two distinct points in a company's life, and confusing them is a frequent error. The first is at incorporation, when you register the company with its starting authorised capital and pay duty on the whole of it. The second is later, when the company increases its authorised capital to issue more shares, perhaps to bring in an investor or to capitalise reserves. On an increase you pay only on the additional capital, not again on the slice that was already stamped at incorporation. The tool computes the duty on whatever capital figure you feed it, so for an increase you enter just the new tranche.
Raising authorised capital by NGN 50 million
Imagine a growing company lifting its authorised share capital by NGN 50,000,000 to make room for a new round of shares. Using the rate this calculator applies, the increase attracts NGN 375,000 in stamp duty. That is the new capital multiplied by 0.75 percent, payable once on the resolution and filing that record the increase.
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The chart shows the authorised capital and the stamp duty side by side, so the 0.75 percent cost is visible relative to the capital being registered.
A planning point on setting the ceiling
Because the duty is charged on authorised rather than issued capital, founders sometimes set a very high authorised ceiling at incorporation to avoid the friction of increasing it later. That convenience has a price: you pay 0.75 percent on the whole ceiling up front, even on shares you may never issue. The opposite habit, setting a tight ceiling and topping up only when needed, spreads the cost but adds filing steps each time. There is no universally right answer, only a trade-off between paying duty early on capital you might not use and paying it repeatedly as you grow. Model both paths through this tool before you decide.
The 0.75 percent here is the rate this calculator applies and is drawn from general knowledge of the stamp-duty schedule rather than independently certified, so confirm the current share-capital rate and the exact filing procedure with the FIRS, reconstituted as the Nigeria Revenue Service under the 2025 reform. Share-capital duty is a corporate instrument, so it sits on the federal side and is remitted to the revenue service rather than a state office.
Is this the same as duty on transferring shares?
No, and the two are easy to mix up. This page is about creating capital, charged at 0.75 percent on the authorised amount. Transferring existing shares from one shareholder to another is a separate instrument taxed at a different, higher ad valorem rate. If you are selling or gifting shares rather than issuing new ones, the share-transfer calculator is the right tool, not this one.
When exactly does the duty have to be paid?
It is due on the instrument, so the practical trigger is the filing that registers the incorporation or the capital increase. The registry and the revenue service expect the duty settled as part of perfecting those filings, and an unstamped capital document can hold up the registration. Treat the duty as part of the cost of the corporate action and pay it at the same time you file, not afterwards.