The Court of Appeal sitting in Abuja on Wednesday reversed the Federal High Court judgment that had ordered the Central Bank of Nigeria (CBN) to pay Kasmal International Services N579,130,698,440 for its involvement in stamp duty collection.
Justice Adebukola Banjoko, delivering the majority judgment (2-1) of the Appeal Court, sided with the CBN’s legal team in overturning the lower court decision.
Banjoko stated that Kasmal had no legal right to be engaged by the Nigerian Postal Service (NIPOST) for stamp duty collection from the outset.
Nairametrics previously reported that the Federal High Court judgment, delivered on Friday, October 11, 2024, by Justice Inyang Ekwo, had ordered the CBN to pay over N579 billion plus interest to Kasmal within a specified period.
The Federal High Court’s contested judgment also included a 10% annual interest rate on the judgment sum from January 1, 2015, to January 31, 2020.
Legal Dispute
Justice Ekwo had ruled that the CBN had paid Kasmal a total of N10.3 billion, representing 15% of remitted stamp duties by all Deposit Money Banks (DMBs) between January 1, 2015, and January 31, 2020, via the CBN NIPOST Stamp Duty Collection Account No. 3000047517.
He held that the CBN could not backtrack from its contractual agreements with Kasmal and NIPOST.
Kasmal’s lawyer, Dr. Alex Izinyon (SAN), argued that his client was appointed by NIPOST to represent it in the collection of a N50 charge on all receipts issued by any bank or financial institution as acknowledgment of services rendered for electronic transfers and teller deposits of N1,000 and above, in compliance with the Stamp Duties Act and the Nigerian Financial Regulations 2009.
In the CBN and Attorney General of the Federation’s (AGF) 17 reasons listed in their notice of appeal dated October 24, 2024, Chief Akintola expressed dissatisfaction with the Federal High Court ruling.
Akintola contended that Justice Ekwo “erred in law,” requiring the Appeal Court to intervene.
The appellants further argued that “the alleged funds Kasmal International seeks to recover are public monies, which are part of the Federation Account governed by the provisions of Section 162 of the 1999 Constitution (as amended).”
He maintained that, regardless of any previous mismanagement, stamp duties should be paid into the Federation Account and shared among the three tiers of government.
On his part, Alex Izinyon (SAN) opposed the appeal by the CBN, insisting on the contractual agreement his client had with NIPOST.
Appeal Court Judgment
Delivering judgment on Wednesday, Justice Banjoko held that, in the final analysis, the Appeal Court firmly concludes that the first respondent (Kasmal) lacks the requisite locus standi (legal authority) to initiate the suit or claim any lawful entitlement or commission.
“The suit as constituted is fundamentally defective,” she said, adding that the appeal (by CBN and AGF) is allowed and the judgment of the lower court is set aside in its entirety.
“Similarly, you cannot give what you don’t have,” she stated.
She stressed that the Federal High Court, per Justice Ekwo, “erred in declaring Kasmal’s entitlement to the said commission when in law there was no legal contract ab initio (from the beginning) between first respondent (Kasmal) and NIPOST.”
The Appeal Court further concluded that NIPOST had no statutory authority to manage or collect stamp duties and cannot delegate powers it does not have to the first respondent (Kasmal).
In his dissenting judgement, Justice Okong Abang of the Appeal Court said he finds it extremely difficult to agree with the majority judgement that the transaction in question is illegal.
” My conscience will not allow me if I should follow the majority,” he added.
Abang further stated that by the ratification of the contract by the attorney general and payment of N10.3 billion, he must “now be estopped from keeping the proceeds meant for the 1st respondent(Kasmal ).
“The doctrine of unjust enrichment frowns at a party who uses the law to retain the benefit conferred by another without offering compensation,” he concluded.
He held that the appeal lacked merit and ought to be dismissed and proceeded to dismiss the appeal.
More Insights
- Stamp duty is an indirect tax imposed on several financial transactions.
- In 2023, Nairametrics recalls that former CBN governor Godwin Emefiele revealed that total revenue collected as stamp duty on behalf of the Federal Government from 2016 to 2022 was N370.686 billion.
- Kasmal had approached the Federal High Court to determine its percentage share under its agreement with relevant agencies, particularly NIPOST.
- On Wednesday, July 16, 2025, the Appeal Court delivered its final judgment on the matter, specifically addressing the CBN’s appeal.
