Stamp duty: Court refuses to restrain CBN from disbursing ‘trillions’ deposited by commercial banks

The Federal High Court sitting in Abuja has refused to restrain the Central Bank of Nigeria (CBN) from disbursing all accrued deposits paid into the CBN NIPOST stamp duty collection account by all Deposit Money Banks (DMBs) or commercial banks.

Justice Inyang Ekwo declined the request made by Kasmal International Services whose legal team claimed that it has a percentage in the N3.8 trillion naira domiciled in the Stamp Duty Collection Account.
The CBN and the Attorney-General of the federation were joined as respondents by the applicant in a motion ex-parte in the suit marked FHC/ABJ/CS/335/2024.

Stamp Duty claims

The applicant’s lawyer, Dr Alex Izinyon SAN submitted that his client was appointed by the Nigerian Postal Service to represent NIPOST in the collection of 50 naira on all receipts given by any bank or financial institution in acknowledgement of services rendered in respect of electronic transfers and teller deposits from N1,000 and above in compliance with the Stamp Duties Act and the  Nigeria Financial Regulations 2009.

He added that the terms of the agreement between NIPOST and the plaintiff included the remuneration of N7.50 from every 50-naira deduction.

In his motion seen by Nairametrics, the lawyer stated that his client’s percentage has not been fully paid as agreed.

He argued that if disbursement is done to the exclusion of the plaintiff’s percentage, the plaintiff will be highly prejudiced and will suffer irreparable losses.
The motion reads,”

“The Plaintiff has become aware by public disclosures of the Governor of the 1st Defendant that after the initial payment of N10.367 billion to the Plaintiff which did not reflect the total value of all accrued deposits which ought to have been paid into the 1st Defendant NIPOST Stamp Duty Collection Account No. 3000047517 within the period of 1st January 2015 till 31st January 2020, further remittances were made from the DMBs’ NIPOST STAMP DUTIES ACCOUNTS to the 1st Defendant NIPOST Stamp Duty Collection Account No. 3000047517 7 in the tune of over N370.7 billion which were amounts that accrued within the period of 1st January 2015 till 31st January 2020.

“Currently, a total of 3.8 trillion naira stands in the Stamp Duty Collection Account ready for distribution between the Federal Government, State Government, Local Governments, the Federal Inland Revenue Service (FIRS), Coordinating Consultants and other bodies.

“That the Plaintiff’s 15% which is NGN 579,130,698,440 is part of the 3.8 trillion naira in the Stamp Duty Collection Account.

“The defendants/respondents have started taking steps to disburse and transfer the whole of the 3.8 trillion Naira in the Stamp Duty Collection Account without consideration of the outstanding payments due to the Plaintiff.”


The applicant prayed for the following orders against the CBN,

“An order of interim injunction restraining the 1st and 2nd Defendants, either by themselves, agents, privies, assigns or whatsoever so called, from disbursing, distributing, transferring, depleting or doing anything whatsoever with all accrued deposits paid into or which ought to have been paid into the CBN NIPOST Stamp Duty Collection Account by all Deposit Money Banks (DMBs) pending the hearing and the determination of the Motion on Notice.

“An order of interim injunction restraining the 1st and 2nd Defendants, either by themselves, agents, privies, assigns or any person or persons or body howsoever described or whatsoever so called, from attempting any transfer, payments, relocation, alienation, or tampering or doing anything whatsoever in respect of all accrued deposits paid into or which ought to have been paid into the CBN NIPOST Stamp Duty Collection Account by all Deposit Money Banks (DMBS) pending the hearing and the determination of the Motion on notice.”

In the alternative, the applicant also prayed for an “order of this Honourable Court directing the Defendants/Respondents to appear before this Honourable Court to show cause why the reliefs sought ought not to be granted.”
Rather than grant all the prayers, the judge asked the CBN to appear before him and explain why the request of the applicant should not be granted.

His order dated March 18, 2024 and seen Nairametrics on Friday, reads,

“After hearing Dr. Alex A. Izinyon, SAN move in terms of the motion paper and the Court having considered the application. It is hereby ordered as follows:

“Plaintiff is at this moment ordered to serve defendants with all processes in this suit within 2 days of this order.

“Order is hereby made directing Defendants/Respondents to appear before this Honourable Court to show cause why the reliefs sought ought not to be granted on the next date of hearing.”

What transpired in court

At the resumed sitting on Friday, the court was informed that the CBN’s legal team was yet to show cause as directed.
Justice Ekwo then adjourned the matter to April 16 for hearing.

More insight

Stamp duty is an indirect tax imposed on several financial transactions.

In 2023, Nairametrics recalls that a former CBN governor, Godwin Emefiele revealed that the total revenue collected as stamp duty on behalf of the Federal Government in 6 years, between 2016 and 2022, was N370.686 billion.

The applicant approached the court to determine its percentage from the agreed terms with relevant agencies.

In 2021, the federal government declared NIPOST as the agency responsible for collecting stamp duties in Nigeria.

 https://nairametrics.com/2024/03/22/stamp-duty-court-refuses-to-restrain-cbn-from-disbursing-trillions-deposited-by-commercial-banks/

He added that the terms of the agreement between NIPOST and the plaintiff included the remuneration of N7.50 from every 50-naira deduction.

“That the Plaintiff’s 15% which is NGN 579,130,698,440 is part of the 3.8 trillion naira in the Stamp Duty Collection Account.

It's mind boggling that a public servant signed this kind of contract on behalf of the Federal Government of Nigeria. The banks are the ones collecting and remitting the funds to CBN, I need clarification on why FG needs an intermediary and if it's absolutely required, it will be 15% of the money from now until eternity.

They will struggle to get this huge commission from this current administration of CBN and President Asiwaju Bola Ahmed Tinubu. This is why CBN Gov Olayemi Cardoso was brought to CBN and he is called "The Headmaster ".

The Judge just carefully used wisdom too
God bless Nigeria for ever! Check my signature for free stuffs!

They should forget about the money

Imagine? C anoda corruption in broad day?

I wonder why NIPOST needs an intermediary to collect public funds which banks are already collecting and duly remitting to CBN. A lot of money disappears under the guise of unnecessary consultancy fees.

Another "PID" Contract Agreement. The Federal Government should arrest the brain behind the company making bogus and useless claim. Going into a contract agreement that reeks of fraud should be deterred by serious sanctions

FreeStuffsNG:
He added that the terms of the agreement between NIPOST and the plaintiff included the remuneration of N7.50 from every 50-naira deduction.

“That the Plaintiff’s 15% which is NGN 579,130,698,440 is part of the 3.8 trillion naira in the Stamp Duty Collection Account.

It's mind boggling that a public servant signed this kind of contract on behalf of the Federal Government of Nigeria. The banks are the ones collecting and remitting the funds to CBN, I need clarification on why FG needs an intermediary and if it's absolutely required, it will be 15% of the money from now until eternity.

They will struggle to get this huge commission from this current administration of CBN and President Asiwaju Bola Ahmed Tinubu. This is why CBN Gov Olayemi Cardoso was brought to CBN and he is called "The Headmaster ".

The Judge just carefully used wisdom too

Kikiki.... 😆😅🤣😂

FreeStuffsNG:
Stamp duty: Court refuses to restrain CBN from disbursing ‘trillions’ deposited by commercial banks

https://nairametrics.com/2024/03/22/stamp-duty-court-refuses-to-restrain-cbn-from-disbursing-trillions-deposited-by-commercial-banks/

They have come again.

H

Who signed the damn terms of agreement??

Honestly civil and public servants that do these things need to be flogged and castrated on live TV.

How can you sign away 15% of public funds to a private intermediary firm as collection fee?

Banks already deduct and sent to CBN to NIPOST... NIPOST itself is jst a camouflage in this deal, They have no technical doings in the deal aside policing our illegal high deductibles. So why then would a mere NIPOST contracted thier own position to another Ìjẹ̀bú ode P&ID



Abi which kind country be this gan for God sake

What I got from this news.
Firstly, another 3.8 trillion naira is going to be shared between federal, state and local government. This is different from FAAC sharing. Yet, our governors will keep mute as if no money is coming to them. Governors needs to be held accountable.
Secondly, Some people are just willingly signing dubious contract on behalf of federal government. How do we explain this? Stamp duty deducted from my bank account and remitted to nipost account. Where is the intermediary comes from? And it is a none popular financial company claiming this huge amount. If it's Pwc or KPMG, it will be a bít better. But these mushroom companies without a tangible presence will just be claiming billions

They have a funny way of legalizing fraud.

Summary please

FreeStuffsNG:
He added that the terms of the agreement between NIPOST and the plaintiff included the remuneration of N7.50 from every 50-naira deduction.

“That the Plaintiff’s 15% which is NGN 579,130,698,440 is part of the 3.8 trillion naira in the Stamp Duty Collection Account.

It's mind boggling that a public servant signed this kind of contract on behalf of the Federal Government of Nigeria. The banks are the ones collecting and remitting the funds to CBN, I need clarification on why FG needs an intermediary and if it's absolutely required, it will be 15% of the money from now until eternity.

They will struggle to get this huge commission from this current administration of CBN and President Asiwaju Bola Ahmed Tinubu. This is why CBN Gov Olayemi Cardoso was brought to CBN and he is called "The Headmaster ".

The Judge just carefully used wisdom too

How is this different from what Tinubu is doing to Lagos state using Alpha Beta?

....Can you restrain Bullion vans. It can never be stopped from doing what bullion vans do...

Despite the abject poverty in the land, the eyes of Nigerians are still closed. Take a look at the huge moneys accruable to government, yet there’s no impact in the lives of the common man.
Nigerians should protest for a reduction in fuel price as well as the reduction in exchange rate.
This administration just robbed the ordinary citizen to make the rich & political elites richer. SHINE YOUR EYES

FreeStuffsNG:
He added that the terms of the agreement between NIPOST and the plaintiff included the remuneration of N7.50 from every 50-naira deduction.

“That the Plaintiff’s 15% which is NGN 579,130,698,440 is part of the 3.8 trillion naira in the Stamp Duty Collection Account.

It's mind boggling that a public servant signed this kind of contract on behalf of the Federal Government of Nigeria. The banks are the ones collecting and remitting the funds to CBN, I need clarification on why FG needs an intermediary and if it's absolutely required, it will be 15% of the money from now until eternity.

They will struggle to get this huge commission from this current administration of CBN and President Asiwaju Bola Ahmed Tinubu. This is why CBN Gov Olayemi Cardoso was brought to CBN and he is called "The Headmaster ".

The Judge just carefully used wisdom too

But this is what Tinubu did in Lagos State When he contracted the revenue collection job of the state-owned lirs to his personal company Alpha Beta, thereby shortchanging the people of Lagos state of their common wealth,.

Despite the abject poverty in the land, the eyes of Nigerians are still closed. Take a look at the huge moneys accruable to government, yet there’s no impact in the lives of the common man.
Nigerians should protest for a reduction in fuel price as well as the reduction in exchange rate.
This administration just robbed the ordinary citizen to make the rich & political elites richer. SHINE YOUR EYES

Reeks of corruption

The government official(s) who made this agreement with the company should be arrested & prosecuted!!!

FreeStuffsNG:
Stamp duty: Court refuses to restrain CBN from disbursing ‘trillions’ deposited by commercial banks

 https://nairametrics.com/2024/03/22/stamp-duty-court-refuses-to-restrain-cbn-from-disbursing-trillions-deposited-by-commercial-banks/

Reaping where they did not sow. Professional middlemen milking people dry

Housing:
Another "PID" Contract Agreement. The Federal Government should arrest the brain behind the company making bogus and useless claim. Going into a contract agreement that reeks of fraud should be deterred by serious sanctions

Which govt officials signed the contract?
That's the first question.

Oshkosch:
Despite the abject poverty in the land, the eyes of Nigerians are still closed. Take a look at the huge moneys accruable to government, yet there’s no impact in the lives of the common man.
Nigerians should protest for a reduction in fuel price as well as the reduction in exchange rate .
This administration just robbed the ordinary citizen to make the rich & political elites richer. SHINE YOUR EYES

They've got so many ways of milking the citizens to raise money that they will embezzle.
The bold is probably the only thing we enjoy and they've taken it away, it has to return.

The money is for Nigerians and should be used as such
I doubt all that money is still sitting there for 6 years

delpee:
I wonder why NIPOST needs an intermediary to collect public funds which banks are already collecting and duly remitting to CBN. A lot of money disappears under the guise of unnecessary consultancy fees.

Exactly this is why they ha e los the case already

Greediness

Nobody will win this government in Court. The god of Politics has ensured that already

They should first arrest and investigate those who signed that agreement on behalf of the federal government. Too much wicked public servant stealing Nigeria blind

This is one of the reasons why they sponsored obi and Atiku and were dead against Tinubu becoming president. All those feeding fat on the FG knew they will be put on a diet .
Just one big racket .

delpee:
I wonder why NIPOST needs an intermediary to collect public funds which banks are already collecting and duly remitting to CBN. A lot of money disappears under the guise of unnecessary consultancy fees.

Consultancy is never unnecessary.