Estate Accounts (Nigeria)

An Estate Accounts in Nigeria sets out the estate accounts and the obligations it places on the parties.

The legal obligation to maintain and render estate accounts arises from the Administration of Estates Laws applicable in each Nigerian state — including the Administration of Estates Law Cap A2 Laws of Lagos State 2015, the Administration of Estates Law of Ogun State, the Administration and Succession (Estate of Deceased Persons) Law of Delta State, and equivalent statutes in Kano, Rivers, Anambra, and other states — which codify the common law fiduciary duties of executors and administrators inherited from English equity. The probate division of the relevant state High Court — for example, the Lagos State High Court Probate Registry in Lagos Island — has jurisdiction over estate administration proceedings.

A Grant of Probate (for testate estates where the deceased left a valid will) or Letters of Administration (for intestate estates where the deceased died without a valid will) issued by the Probate Registry of the relevant state High Court gives the personal representative legal authority to collect estate assets, pay debts, and distribute to beneficiaries. The estate accounts demonstrate how the personal representative has discharged this authority and provide the basis on which beneficiaries can verify that they have received their correct entitlements under the will or the applicable intestacy rules.

For estates involving companies registered with the Corporate Affairs Commission (CAC) under the Companies and Allied Matters Act 2020 (CAMA 2020), the personal representative may need to deal with share transfers and obtain CAC consent. For estates with pension entitlements under the Pension Reform Act 2014, the personal representative must interact with the deceased's Pension Fund Administrator (PFA) licensed by the National Pension Commission (PenCom) to claim the Retirement Savings Account (RSA) balance and any death benefits. Rental income earned during the administration period is subject to Personal Income Tax under the Personal Income Tax Act Cap P8 LFN 2004, administered by the relevant State Internal Revenue Service, and the executor or administrator must file returns with the Federal Inland Revenue Service (FIRS) where applicable. Capital gains from the disposal of estate assets are subject to the Capital Gains Tax Act Cap C1 LFN 2004. Listed shares on the Nigerian Exchange (NGX) require transfer through a Securities and Exchange Commission (SEC Nigeria)-registered stockbroker. The Nigeria Data Protection Regulation (NDPR) 2019, supervised by the Nigeria Data Protection Commission (NDPC), governs the processing of beneficiaries' personal data during estate administration. The Wills Act 1837 (received English law) and the state Administration of Estates Laws provide the foundational legal framework. The Federal High Court and state High Courts adjudicate disputes between personal representatives and beneficiaries, and the Supreme Court of Nigeria is the final appellate court in estate matters.

Nigeria Estate Accounts are needed at key stages of estate administration to satisfy legal obligations to probate courts and beneficiaries.

When a Grant of Probate has been issued by the Lagos State High Court Probate Registry, the FCT High Court Probate Registry in Abuja, the Rivers State High Court, or any other state High Court Probate Registry under the Administration of Estates Law applicable in that state, and the executor has collected estate assets and is ready to distribute to beneficiaries, estate accounts must be prepared and presented to all beneficiaries before final distribution. Without rendered accounts, beneficiaries cannot verify that their entitlements under the will or the applicable intestacy rules are correct.

When an administrator appointed by the court to administer an intestate estate — one where the deceased died without a valid will governed by the Wills Act 1837 (received English law) or a valid customary law will — has completed asset collection and debt payment, estate accounts must be rendered before distribution to statutory next-of-kin under the applicable state intestacy rules and, where relevant, customary law principles recognised by Nigerian courts.

When a beneficiary or the Attorney General of a state (with standing as parens patriae for charities or minor beneficiaries under the Child Rights Act 2003) applies to the probate division of the relevant state High Court for an order to pass the accounts under Order 56 of the Lagos State High Court (Civil Procedure) Rules 2019 or equivalent state rules, formal estate accounts must be filed with the court.

When the estate includes shares in companies registered with the Corporate Affairs Commission (CAC) under the Companies and Allied Matters Act 2020 (CAMA 2020), pension entitlements from a Pension Fund Administrator (PFA) licensed by the National Pension Commission (PenCom) under the Pension Reform Act 2014, or listed securities on the Nigerian Exchange (NGX) regulated by the Securities and Exchange Commission (SEC Nigeria), estate accounts must reflect the valuations and transfer procedures applicable under each regime.

When the executor or administrator of the Estate Accounts (Nigeria) seeks a formal deed of discharge from beneficiaries absolving the personal representative of further liability, estate accounts audited by an Institute of Chartered Accountants of Nigeria (ICAN) or Association of National Accountants of Nigeria (ANAN) member provide the indispensable financial basis for obtaining that discharge.

Parties in Nigeria should prepare Nigeria Estate Accounts proactively under the Administration of Estates Laws of the relevant state and the Wills Act 1837. The Federal Inland Revenue Service (FIRS) administers capital gains tax under the Capital Gains Tax Act Cap. C1 LFN 2004 and personal income tax under the Personal Income Tax Act Cap. P8 LFN 2004 on estate administration income. The Nigeria Data Protection Regulation (NDPR) 2019 and the Nigeria Data Protection Commission (NDPC) require lawful basis for processing beneficiaries' personal data. The Stamp Duties Act (Cap S8 LFN 2004) may require stamping of instruments executed during estate administration.

Properly prepared Nigeria Estate Accounts must contain the following elements.

Cover summary: The full name of the deceased, date of death, state of domicile, the nature of the grant (Grant of Probate or Letters of Administration), the grant reference number from the issuing state High Court Probate Registry (for example, the Lagos State High Court Probate Registry or the FCT High Court Probate Registry in Abuja), the date of grant, and the full names of all personal representatives.

Inventory of assets: A complete schedule of all assets as at the date of death, including: real property in Nigeria (with Certificate of Occupancy (C of O) number, Right of Occupancy reference under the Land Use Act Cap L5 LFN 2004, and state location — noting that governor's consent under Section 22 of the Land Use Act is required for title transfers to beneficiaries); bank accounts (with bank name, account numbers, and balances — Central Bank of Nigeria (CBN)-regulated banks including First Bank of Nigeria, Zenith Bank, Access Bank, Guaranty Trust Bank, and UBA require certified copies of the grant before releasing funds); shares on the Nigerian Exchange (NGX) or registered with the Corporate Affairs Commission (CAC) under CAMA 2020; pension entitlements and RSA balances from Pension Fund Administrators (PFAs) regulated by the National Pension Commission (PenCom); vehicles; personal effects; insurance policy proceeds from insurers regulated by the National Insurance Commission (NAICOM); and foreign assets.

Debts and liabilities: All outstanding debts at death — mortgages, personal loans from CBN-regulated banks, credit card debts, tax liabilities owed to the Federal Inland Revenue Service (FIRS) or the relevant State Internal Revenue Service under the Personal Income Tax Act Cap P8 LFN 2004 and the Companies Income Tax Act Cap C21 LFN 2004, and any judgment debts from the Federal High Court or state High Courts.

Administration income: Rent, dividends, interest, and proceeds of asset sales received by the estate during the administration period. Rental income is subject to Personal Income Tax administered by the relevant State Internal Revenue Service. Capital gains from asset disposals are subject to the Capital Gains Tax Act Cap C1 LFN 2004 at 10%, assessed by the FIRS.

Administration expenses: Probate court fees, solicitor's fees (Nigerian Bar Association (NBA)-enrolled solicitors), accountant's fees (Institute of Chartered Accountants of Nigeria (ICAN) or Association of National Accountants of Nigeria (ANAN) members), funeral expenses, property repair costs, and taxes paid to FIRS and State Internal Revenue Services.

Distributions to beneficiaries: A schedule of payments to each beneficiary, cross-referenced to the will provisions or the applicable intestacy rules — which vary by state and may incorporate Yoruba, Igbo, or Hausa customary law principles recognised by Nigerian courts.

Balancing statement: Assets minus liabilities minus administration expenses equals total distributions, with no unexplained balance.

Personal representative's declaration: Signed by each personal representative confirming accuracy. The Nigeria Data Protection Regulation (NDPR) 2019 and the Nigeria Data Protection Commission (NDPC) govern the processing of beneficiaries' personal data in the accounts. The Securities and Exchange Commission (SEC Nigeria) regulates transfers of listed securities. Forms-legal.com provides this Estate Accounts template as a starting point for Nigeria-compliant probate documentation under the Wills Act 1837 (received English law) and applicable state Administration of Estates Laws.

Compliance Reference Checklist: Section 22 Land Use Act Cap. L5 LFN 2004 — governor's consent for real property transfers to beneficiaries. Section 49 Administration of Estates Law Cap. A2 Laws of Lagos State 2015 — executor's duty to render accounts. Order 56 Lagos State High Court (Civil Procedure) Rules 2019 — passing of accounts procedure before Lagos State High Court Probate Registry. Section 15 Capital Gains Tax Act Cap. C1 LFN 2004 — Federal Inland Revenue Service (FIRS) CGT on estate asset disposals. Section 4 Personal Income Tax Act Cap. P8 LFN 2004 — estate administration income returns to State Internal Revenue Service. Section 84 Stamp Duties Act Cap. S8 LFN 2004 — FIRS stamping of estate instruments. Section 11 Pension Reform Act 2014 — National Pension Commission (PenCom) RSA death benefit claim procedure. Part E CAMA 2020 — Corporate Affairs Commission (CAC) share transfer on death. Section 17 Nigeria Data Protection Act 2023 — Nigeria Data Protection Commission (NDPC) obligations for beneficiary personal data. Section 389 Criminal Code Act Cap. C38 LFN 2004 — fraudulent conversion by personal representative. Rule 5 Administration and Succession (Estate of Deceased Persons) Law — Delta State probate procedure. Section 2 Wills Act 1837 (received English law) — testate succession framework applied by Nigerian courts. Abuja Geographic Information Systems (AGIS) — FCT property title transfer in estate administration. Lagos State Land Registry — registration of property transfers to beneficiaries. Nigerian Exchange (NGX) — listed securities transfer via Securities and Exchange Commission (SEC Nigeria)-registered stockbroker. National Insurance Commission (NAICOM) — insurance policy claim procedure. Institute of Chartered Accountants of Nigeria (ICAN) — estate accounts audit. Association of National Accountants of Nigeria (ANAN) — alternative accounts certification. Nigerian Bar Association (NBA) — solicitor engagement for probate proceedings.