The Court of Appeal in Abuja has set aside an October 11, 2024 judgment by Justice Inyang Ekwo of the Federal High Court (Abuja), ordering the Central Bank of Nigeria (CBN) and the Attorney General of the Federation (AGF) to pay a firm – Kasmal International Services – N579,130,698,440 for assisting the Nigerian Postal Service (NIPOST) to collect stamp duty between January 1, 2015 and January 31, 2020.
In a split decision of two-to-one, the Court of Appeal held on Wednesday that Kasmal, an entity promoted by the late chieftain of the Peoples Democratic Party (PDP), Buruji Kashamu, did not deserve any payment in relation to any stamp duty collection.
In the lead majority judgment, Justice Adebukola Banjoko held among others, that Kasmal had no legal right to be engaged by NIPOST for stamp duty collection from the outset.
Justice Banjoko found that Kasmal lacked the necessary locus standi (legal right) to make claim to any lawful entitlement or commission as it did in the suit decided in its favour by Justice Ekwo.
She said, “You cannot give what you don’t have,” and noted that since NIPOST lacked the statutory authority to manage or collect stamp duties, it cannot delegate powers that it does not have to Kasmal.
Justice Banjoko held that the Federal High Court “erred in declaring that Kasmal was entitled to the said commission, when in law, there was no legal contract from the beginning between Kasmal and NIPOST.
She further held that the suit filed by Kasmal before the Federal High Court, which led to the October 11, 2024 judgment, was fundamentally defective.
Justice Banjoko proceeded to allow the appeal filed by CBN and Attorney General of the Federation (AGF), marked: CA/ABJ/CV/1266/2024.
Justice Oyebola Oyewumi agreed with Justice Banjoko, while Justice Okon Abang dissented.
Justice Abang said he found it extremely difficult to agree with the majority decision that the transaction in question was illegal.
“My conscience will not allow me if I should follow the majority,” he added.
Abang held that, by ratifying the contract and paying N10.3billion to Kasmal, the AGF and CBN could no longer keep the proceeds meant for Kasmal.
He added, “The doctrine of unjust enrichment frowns at a party, who uses the law to retain the benefit conferred by another without offering compensation.”
Justice Ekwo had, in his October 11, 2024 judgment in the suit marked: FHC/ABJ/CS/335/2024 filed by Kasmal, ordered the CBN to among others, pay Kasmal N579,130,698,440 for assisting NIPOST to collect stamp duty between January 1, 2015 and January 31, 2020.
He also ordered the CBN to pay the N579 billion judgment sum along with 10 percent interest per annum.
Justice Ekwo faulted the defendants’ contention that NIPOST lacked the statutory power to collect stamp duties and that the agreement it (NIPOST) reached with the plaintiff was illegal.
The judge declared that a previous judgment on stamp duty given in favour of the plaintiff still subsisted as it is yet to be contradicted by any higher court.
Justice Ekwo also faulted the argument by the CBN and the AGF that the reliefs sought by the plaintiff could not be granted because all revenues accruing to the federation, including the stamp duties, are remitted into the Federation Account, which could only be distributed among the tiers of government as provided in the Constitution.
The judge noted that the CBN had earlier paid Kasmal N10.3 billion, representing 15 percent of the remitted stamp duty paid by all Deposit Money Banks (DMBs) between January 1, 2015, and January 31, 2020, from the CBN NIPOST Stamp Duty Collection Account No. 3000047517.
Justice Ekwo said, “I find, at the end, that the CBN and the AGF have not effectively controverted the case of the plaintiff. The plaintiff, having made a credible case, ought to succeed on the merit, and I so hold.
“It is my opinion that this case is predicated on the fact that the first and second defendants have had transactions with the plaintiff before by paying the plaintiff the sum of N10.3billion, being 15 percent of remitted stamp duty.”
The plaintiff, represented by Dr. Alex Izinyon (SAN), had claimed that NIPOST appointed it to represent it (NIPOST) in the collection of N50 on all receipts given by any bank or financial institution in acknowledgement of services rendered concerning electronic transfers and teller deposits of 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 N50 deduction.
Kasmal prayed the court for an order directing the first and second defendants – CBN and AGF – to pay the plaintiff the sum of N579,130,698,440 or any other sum as may be adjudged by this Court upon the production of the records relating to the collection of stamp duty between January 1, 2015, and January 31, 2020, representing 15% of all accrued deposits paid into or which ought to have been paid into the CBN NIPOST Stamp Duty Collection Account No. 3000047517 by all Deposit Money Banks (DMBs).
“An order directing the first and second defendants to pay the plaintiff an interest payment of 10% per annum on the sum of N579,130,698,440 or any other sum as may be adjudged by this Court upon the production of the records relating to the collection of stamp duty between January 1, 2015, and January 31, 2020, representing 15% of all accrued deposits paid into or which ought to have been paid into the CBN NIPOST Stamp Duty Collection Account No. 3000047517 by all Deposit Money Banks (DMBs).”
