Court Orders CBN to Pay Kasmal Services N579bn Over Unpaid Stamp Duty Commission

Confidence UbaniOctober 11, 20241 Mins read455

CBN

A Federal High Court in Abuja has ordered the Central Bank of Nigeria (CBN) to pay Kasmal International Services N579.1 billion. The sum includes a 10% annual interest for unpaid stamp duty collection fees between 2015 and 2020.

Justice Inyang Ekwo ruled after Kasmal, through its lawyer Alex Izinyon, sued the CBN. Kasmal had been appointed by the Nigerian Postal Service (NIPOST) to collect a N50 fee on transactions above N1,000. Under the agreement, Kasmal was entitled to N7.50 from each N50 collected. However, Kasmal claimed it was owed 15 per cent of the collected fees.

The CBN had paid N10.3 billion to Kasmal but argued that further payments should go to the Federation Account for distribution to federal, state, and local governments. In their preliminary objection to the case, the Attorney General of the Federation and the CBN, represented by Chief Adeniyi Akintola (SAN), argued that the contract between the plaintiff and NIPOST is illegal.

Akintola stated that only the Federal, State, and Local Governments have the right to share revenue from the Federation Account. He also said that NIPOST is not authorised to collect stamp duties and, therefore, lacks the power to appoint the plaintiff as a collection agent for the Federal Government.

Justice Ekwo rejected the CBN’s arguments and ruled that Kasmal was entitled to the outstanding amount. He ordered the CBN to pay the N579.1 billion with interest.