A Federal High Court sitting in Abuja has ordered the Central Bank of Nigeria (CBN) to pay N579 billion to Kasmal International Services, a Nigerian private firm, for stamp duty collection services rendered.

Kasmal rendered the collection services to the apex bank between January 1, 2015 and January 31, 2020.

During the hearing, it was established that the firm was hired by the Nigerian Postal Service (NIPOST) to collect a N50 fee on all receipts issued by banks or financial institutions for services related to electronic transfers and teller deposits of N1,000 and above.

It was also agreed by both parties that N7.5 would be paid to the private firm for every N50 deduction made from electronic transactions consummated by bank customers.

READ ALSO: ‘Emefiele Told Us About Politics in 2022 Naira Redesign’, Ex-CBN Director Tells Court

The percentage remuneration was, however, not fully paid to the private firm as agreed.

Court documents reflected that N3.8 trillion currently stands in the Stamp Duty Collection Account. It was also established that the money was to be distributed among the federal government, state governments, local governments, the Federal Inland Revenue Service (FIRS), Coordinating Consultants, and other bodies.

In its objection to the suit, the CBN and the Attorney General of the Federation (AGF) described the agency contract the firm had with NIPOST illegal.

READ ALSO: 4 South African Cops on Trial for ‘Stealing Nigerian’s N1.9b Jewellery’

The defendants went on to argue that only the federal, state and local governments were entitled to sharing the revenue in the federation account.

While delivering his judgement on Friday, Justice Inyang Ekwo, the presiding judge, his judgment, said the submission of the defendants that NIPOST lacked the statutory power to collect stamp duties “did not hold water”.

In the end, the judge ordered the CBN to pay over N579 billion with associated interest within the stipulated period to Kasmal International Services.
The post Court Orders CBN to Pay N579b Stamp Duty Arrears to Private Firm appeared first on Foundation For Investigative Journalism.