[By Abigail Philip David]
Justice Inyang Ekwo of the Federal High Court in Abuja has ordered the Central Bank of Nigeria (CBN) to pay Kasmal International Services Ltd. the sum of N579,130,698,440, with an additional 10% interest per annum, for its role in the collection of stamp duties. The interest will apply from January 1, 2015, to January 31, 2020.
Kasmal, represented by lawyer Alex Izinyon, sued the CBN and the Attorney General of the Federation (AGF). The firm argued that it was appointed by the Nigerian Postal Service (NIPOST) to collect a N50 fee on receipts from banks for services such as electronic transfers and teller deposits of N1,000 and above, as per the Stamp Duties Act and the Nigerian Financial Regulations of 2009.
Kasmal claimed that it was entitled to 15% of the N50 deductions, of which a substantial portion remained unpaid. According to court documents, the CBN had already paid the company N10.367 billion but withheld the full amount. The suit further revealed that over N370 billion in additional remittances had accrued in the CBN’s NIPOST Stamp Duty Collection Account by January 2020, bringing the total to N3.8 trillion.
Kasmal sought an order from the court to direct the CBN and the AGF to pay the outstanding N579 billion, representing 15% of the total stamp duty collections, along with 10% interest.
In their defense, the AGF and the CBN argued that the contract between Kasmal and NIPOST was illegal, stating that stamp duty is a tax exclusively administered by the Federal Government through the Federal Inland Revenue Service (FIRS), not NIPOST. They contended that NIPOST lacked the authority to appoint Kasmal as a collection agent, and urged the court to dismiss the case.
However, Justice Ekwo rejected the defense’s arguments, stating that a previous judgment in favor of Kasmal regarding stamp duties had not been overturned. He ruled that the CBN’s prior payment to Kasmal indicated that the company had a valid claim.
The court held that Kasmal had made a credible case and ordered the CBN to pay the outstanding sum of N579 billion with interest, concluding that the firm’s role in collecting stamp duties had been established and the payments due should be made.
