Appeal Court Rules in Favour of CBN, Overturns ₦579 Billion Stamp Duty Judgment

The Court of Appeal in Abuja has overturned a high-profile Federal High Court judgment that previously ordered the Central Bank of Nigeria (CBN) to pay ₦579 billion to Kasmal International Services in a contentious dispute over stamp duty collections.
In a split judgment (2-to-1), the appellate court ruled in favor of the CBN and the Attorney General of the Federation (AGF), setting aside the earlier ruling delivered by Justice Inyang Ekwo of the Federal High Court in October 2024.

The original judgment had mandated the CBN to pay Kasmal International Services ₦579,130,698,440 for its purported role in assisting the Nigerian Postal Service (NIPOST) to collect stamp duties from Deposit Money Banks between January 2015 and January 2020.
Justice Adebukola Banjoko, delivering the lead majority judgment, asserted that Kasmal had no legal right to be engaged by NIPOST for the collection of stamp duties.

The Court determined that NIPOST lacked statutory authority to manage or delegate stamp duty collection rendering any engagement with Kasmal invalid from the outset.

Consequently Kasmal was found to lack locus standi to claim any entitlement or commission from the contested sum.

In his dissent, Justice Okong Abang challenged the majority’s stance, arguing that previous ratification of the contract by the AGF and payments already made to Kasmal should preclude the government from withholding the remaining proceeds. He asserted that to retain the sums without compensation would amount to unjust enrichment.

In October 2024, the Federal High Court had ruled in Kasmal’s favor, directing the CBN to pay ₦579 billion, including a 10% annual interest on the sum, for services allegedly rendered on behalf of NIPOST in stamp duty collection.

The CBN and AGF appealed promptly, contending that such stamp duty revenues constitute public funds and cannot be lawfully transferred to private entities, especially in the absence of statutory authority or a valid contract.

The ruling is seen as a significant victory for the CBN and a reaffirmation of the legal limitations on private contracts with government agencies in matters of public revenue.

Legal analysts note that it could set a precedent for future disputes regarding the collection and sharing of government stamp duties and similar fiscal claims.

The judgment also underscores the need for strict adherence to statutory processes in the engagement of third parties for public revenue collection.

The matter, having attracted national attention due to the high stakes involved, now sees the return of the contested ₦579 billion to the control of federal authorities, pending any further legal challenge.