In a significant development in Nigeria’s ongoing stamp duty collection dispute, the School of
Banking Honours (SBH) has challenged a recent Federal High Court judgement that awarded
₦579.1 billion to Kasmal International Services Limited, a company owned by the late Senator
Buruji Kashamu.
The Federal High Court’s decision last Friday mandated the Central Bank of Nigeria (CBN) and
the Attorney-General of the Federation to pay the sum to Kasmal as commission for stamp duty
revenue collection. However, SBH contends this ruling violates a 2016 Court of Appeal
judgement that had previously dismissed Kasmal from stamp duty collection activities.
At the heart of the dispute is a larger ₦3.860 trillion fund meant to be shared among the
government, lawyers, consultants, and SBH, which holds Copyright No. LW1023 on the
collection process. The contested ₦579.1 billion represents a 15% commission claim by Kasmal
on this fund.
The SBH showed proof to the court that the ₦3.860 trillion in question came from their own
work. It was half of a ₦7.720 trillion demand notice that they sent to the Nigeria Inter-Bank
Settlement System (NIBSS) for the years 2013–2014. This documentation was reportedly vetted
by multiple federal agencies, including the Revenue Mobilization Allocation and Fiscal
Commission (RMAFC) and the Economic and Financial Crimes Commission (EFCC).
The case has become more complex with revelations that Kasmal had previously collected
₦10.367 billion from the Accountant-General as a “full and final” settlement, with a written
undertaking regarding commitments to SBH. According to court documents, this transaction was
conducted without SBH’s knowledge and violated agreements with the Federal Government.
Adding to the controversy are discrepancies in Kasmal’s previous court cases. In different legal
proceedings, the company provided conflicting end dates for its NIPOST contract: October 2018
in one case (FHC/L/CS/1462/2013), October 2015 in another (FHC/L/CS/1710/2013), and
January 2020 in a recent filing (FHC/ABJ/CS/335/2024). Furthermore, Kasmal’s commission
rate inexplicably increased from 5% in earlier judgements to 15% in the current claim.
The EFCC has reportedly been investigating Kasmal since April 2016, with investigations
continuing into May 2024. Sources close to the case suggest that the company attempted to
strengthen its position by bringing a lawyer into its team for “undue influences.”
The dispute has broader implications for Nigeria’s public finances. In 2021, the
Attorney-Generals of all 36 states initiated proceedings at the Supreme Court seeking ₦176.07
billion as their share of stamp duties collected between 2015 and 2020. By 2023, through a new
Memorandum of Understanding, the expected total had grown to ₦3.860 trillion.
This legal battle continues despite the Federal Government’s 2017 appointment of SBH as the
sole agent for recovering over ₦20 trillion in stamp duty, an appointment that included a
directive to the CBN to open a dedicated Stamp Duty Central Account for SBH’s operations. The CBN’s non-compliance with this directive has been a subject of ongoing litigation.
