Court orders CBN to pay N579bn to firm for stamp duty collection

A Federal High Court in Abuja has directed the Central Bank of Nigeria (CBN) to pay N579 billion to Kasmal International Services, a Nigerian private firm, for its stamp duty collection services rendered between January 1, 2015, and January 31, 2020.

The ruling follows Kasmal’s role in collecting a N50 fee on receipts from electronic transfers and teller deposits exceeding N1,000, under an agreement with the Nigerian Postal Service (NIPOST). For every N50 collected, Kasmal was to receive N7.5, though the firm claimed that full remuneration was not made as agreed.

Court documents show that N3.8 trillion currently sits in the Stamp Duty Collection Account, which is meant for distribution among the federal, state, and local governments, as well as various agencies.

The CBN and the Attorney General of the Federation (AGF) challenged the legitimacy of Kasmal’s contract with NIPOST, arguing that only government bodies were entitled to the revenue.

However, Justice Inyang Ekwo ruled that NIPOST’s statutory authority to collect stamp duties was valid, and ordered the CBN to pay the outstanding amount to Kasmal.

The CBN was instructed to make the payment, including accrued interest, within a specified period.