Massive Relief For CBN and AGF As Court Reverses Staggering ₦579 Billion Stamp Duty Verdict

Appeal Court Reverses ₦579 Billion Stamp Duty Ruling Against CBN and AGF

The Court of Appeal in Abuja has nullified a previous judgment of the Federal High Court which had ordered the Central Bank of Nigeria (CBN) and the Attorney General of the Federation (AGF) to pay a staggering ₦579 billion to Kasmal International Services for purportedly assisting the Nigerian Postal Service (NIPOST) in the collection of stamp duties between January 2015 and January 2020.

In a majority decision delivered on Wednesday, two out of three justices on the appellate panel ruled that Kasmal, a company founded by the late PDP chieftain Buruji Kashamu, lacked the legal standing to make such claims. According to iReporter Online, the court held that NIPOST, which allegedly appointed Kasmal for the task, did not possess the statutory authority to manage or collect stamp duties in the first place and therefore could not delegate such powers.

Justice Adebukola Banjoko, who authored the lead judgment, emphasized that there was no valid contract between Kasmal and NIPOST from the outset, describing the Federal High Court’s earlier ruling as fundamentally flawed. Her reasoning was supported by Justice Oyebola Oyewumi, while Justice Okon Abang dissented, stating that the government’s prior payment of ₦10.3 billion to Kasmal signaled a ratification of the agreement and that retaining the rest of the funds amounted to “unjust enrichment.”

According to iReporter Online, Justice Banjoko argued that “you cannot give what you do not have,” pointing out that the Federal High Court had erred in granting Kasmal’s request for commission on a transaction rooted in an illegality. She allowed the appeal marked CA/ABJ/CV/1266/2024, effectively overturning Justice Ekwo’s controversial ruling.

Justice Ekwo had in his October 2024 judgment awarded Kasmal ₦579,130,698,440 plus 10% annual interest, citing a previous agreement between Kasmal and NIPOST for the deduction and remittance of ₦50 per banking transaction. According to iReporter Online, Kasmal’s counsel, Dr. Alex Izinyon (SAN), had claimed that the company was owed 15% of all stamp duty collections made via Deposit Money Banks during the specified period.

While Justice Ekwo had maintained that the AGF and CBN had failed to dispute Kasmal’s case effectively, the Court of Appeal’s new ruling nullifies that decision, declaring the arrangement illegal and unenforceable under Nigerian law.

With this landmark judgment, the appellate court has reinforced the principle that public institutions cannot unilaterally confer powers they do not legally possess—and it has set aside one of the most contested financial rulings in recent history.

”IREPORTER REPORTS”