Section 79 Stamp Duties Act

Section 79 of Stamp Duties Act 1939 is about Duty reduced in case of short-term marketable securities. It provides as follows:

(1) The stamp duty charged on marketable securities transferable by delivery shall, when the amount secured by the security is to be paid off within a term not exceeding three years after the date on which the duty is payable, and the date by which the amount is to be paid off is conspicuously stated on the face of the security, be reduced to five kobo for every twenty naira or fractional part of twenty naira of the money secured, if that money is to be paid off within a term not exceeding one year from the date on which the duty is payable, and ten kobo for every twenty naira or fractional part of twenty naira of the money secured, if that money is to be paid off within a term exceeding one year but not exceeding three years from the date on which the duty is payable.

(2) If the marketable security upon which the stamp duty has been charged in accordance with this section is assigned, transferred or in any manner negotiated in Nigeria after the date stated on the face of the security as the date by which the amount secured is to be paid off, stamp duty thereon shall be charged at the full rate of duty, an allowance being made for the duty already paid, and if any person in Nigeria after the said date assigns, transfers or in any manner negotiates or is concerned as booker or agent in assigning, transferring or in any manner negotiating any such security, and the security is not stamped in accordance with this provision, that person shall be guilty of an offence and liable on conviction to a fine of forty naira.

(3) Paragraph (3) under the heading “MARKETABLE SECURITY” in the Schedule to this Act, shall not apply in the case of marketable securities given in substitution for marketable securities which have been stamped only with the reduced rate under this section.

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