Stamp Duty in 2026: What Lagos Landlords, Agents, and Investors Need to Know

From 1 January 2026, Nigeria’s new tax laws officially took effect. While much of the public conversation has focused on income tax, one quiet but important change affects almost every property transaction in Lagos: stamp duty on leases.

For years, stamp duty has sat in the background of Lagos real estate, inconsistently applied, poorly explained, and often overlooked in everyday transactions. That has now changed.

This article explains what stamp duty means in 2026, what is different, and how it is already shaping real estate practice in Lagos, clearly, practically, and without legal jargon.

What Is Stamp Duty in Real Estate?

Stamp duty is a tax paid on certain legal documents to give them formal recognition and validity. In real estate, it applies to documents such as:

• Tenancy agreements

• Lease agreements

• Subleases

• Assignments and conveyances

In simple terms, stamp duty is what makes a property document legally usable. An unstamped document may exist, but it can be difficult to rely on in court, during disputes, or in formal financial transactions.

What Changed in 2026?

The major shift in 2026 is clarity and structure, not the invention of a new tax.

Under the new tax framework, stamp duty on leases is now clearly linked to the length of the lease. This means:

• Shorter leases attract lower stamp duty

• Longer leases attract higher stamp duty

• Multi-year and long-term leases are more visible and easier to assess

This removes much of the ambiguity that previously existed, especially in Lagos, where enforcement was uneven.

How the Stamp Duty Structure Works

Rather than focusing on technical rates, what matters for everyday transactions is the logic:

Lease Duration	Stamp Duty Effect
Short-term leases (typically 1 year)	Lower stamp duty
Medium-term leases (2–3 years)	Higher than 1 year
Long-term leases (5 years and above)	Highest tier

The longer the lease, the higher the stamp duty payable. 

Stamp Duty Rates on Leases (Indicative, 2026)

To make this clearer, below is an indicative guide to how stamp duty on leases is commonly assessed under the current framework.

These figures are provided as guidance, not legal advice. Actual assessments may vary depending on document structure and the assessing authority.

Lease Duration	Indicative Stamp Duty Range
Up to 1 year	~0.5%–0.75% of total rent
2–3 years	~0.75%–1% of total rent
5 years and above	~1% or more of total rent

*Rates may vary depending on whether the document is assessed at the federal or state level and how the lease is structured. What matters most is not the exact percentage but the direction: longer leases now come with clearly higher upfront documentation costs.

What This Means for Lagos Real Estate

1. Residential Property

Most residential rentals in Lagos are still structured as one-year leases, often renewed annually. Under the 2026 framework, what changes now is not that stamp duty suddenly appears, but that:

• One-year leases remain the simplest and cheapest to document

• Multi-year residential leases now carry clearer documentation costs

• Landlords and tenants are more deliberate about lease length

• Agents are expected to explain stamp duty more transparently

This reinforces the dominance of annual lease structures, while making longer commitments more intentional.

2.  Commercial Property

Commercial leases feel the impact more directly.

Longer lease terms, which are common in offices, retail, and industrial property, now clearly fall into higher stamp duty tiers. As a result:

• Stamp duty was discussed earlier in negotiations

• Lease duration, break clauses, and renewal options matter more

• Full documentation is expected, especially by corporate tenants

Stamp duty is no longer just an administrative afterthought; it is shaping how commercial leases are structured.

What Agents and Landlords Need to Know

For practitioners, stamp duty in 2026 is now a component of professional credibility.

• Clients expect clearer explanations

• Corporate tenants expect compliance

• Poorly documented leases carry a higher risk

Agents who understand stamp duty can:

• Build trust

• Avoid disputes

• Position themselves as professionals, not middlemen
  
  

What Investors in Lagos Should Know

For investors, stamp duty is more than just a compliance issue; it’s a key structural factor.  Since stamp duty now clearly varies with lease length:

• Longer leases incur higher initial costs

• Lease structuring becomes part of optimizing returns

• Renewal clauses and break options gain importance

Stamp duty costs are also more predictable, which enhances deal modeling and due diligence. Most importantly, properly stamped and documented leases are increasingly seen as part of asset quality. Investors planning to refinance, sell, or partner with institutions will find that clean documentation now carries a greater significance in the role of valuation and exit discussions.

Why This Matters Now

The 2026 changes signal a broader shift: Lagos real estate is moving, slowly but clearly, toward greater formality and transparency. Stamp duty is no longer something to “sort out later.”

It now influences:

• Lease strategy

• Negotiation dynamics

• Investment decisions

Those who understand it early are better positioned.

Final Thought

Stamp duty may not feel dramatic, but in 2026, it has become one of the quiet rules shaping how Lagos real estate works.

For landlords, agents, and investors alike, understanding how stamp duty now applies is no longer optional; it is part of doing business properly in Lagos today.

written by Morenike Akeke