The battle over the rightful ownership of the sum of ₦579.1billion Stamp Duty has taken a new turn as the 36 state governors have joined the Central Bank of Nigeria (CBN), Attorney General of the Federation (AGF) and the School of Banking Honours (SBH) on a suit against Kasmal, the company of the late Senator Buruji Kashamu.
There has been an ongoing legal battle over the vexatious claim of Kasmal over the ₦579.1 billion from Stamp Duty monies accruable to all government beneficiaries.
The company of the late Kashamu was allegedly laying claim to the Stamp Duty amount, even without any verifiable or enforceable NIPOST contract tendered at an Abuja Federal High Court.
This was as an Abuja Court of Appeal had, in a judgment in 2016 nullified the authority of NIPOST authority to engage Kasmal in any role for the Stamp Duty collections.
It was stated in a Notice of Appeal sighted at the resumed hearing of the Appeal on Suit No. FHC/ABJ/CS/335/2024 holden in Abuja on 27 March 2025, that counsels representing the Attorney Generals of the 36 state, Yusuf Ali (SAN) & Others, joined lawyers representing both CBN and AGF, Chief Adeniyi Akintola (SAN) & Others and lawyers representing SBH, Chief Oladipo Okpeseyi (SAN) & Others, against what was described as the “strange” judgment secured by Kasmal.
Represented by Dr. Alex Izinyon (SAN) & Others, Kasmal had secured the judgment from Honourable Justice I.E. Ekwo of an Abuja Federal High Court to be paid ₦579.131 billion, plus 10 per cent interest out of the Stamp Duty accruable to the government.
Grounds of Appeal by the 36 state governments
The 36 state Attorney Generals were said to have complained about the judgment by Hon. Justice I.E. Ekwo in favour of Kasmal on 11 October 2024.
They averred that the judge committed the errors on seven grounds, including: his hearing the case by Originating Summons “when the facts were very hostile and highly in dispute to adversely affected the interests of 36 states;
“His entertaining and granting reliefs to Kasmal when materials before the court did not disclose its locus standi to institute the case and claim reliefs;
“His entertaining the suit when the 36 states were not joined to be heard, thereby violating their constitutional rights to fair hearing;
“His holding that Kasmal was short-paid and to have more payment on the N10.3 Billion negotiated as “full and final” claim [under “false pretense” of a written undertaking on its commitment to SBH];
“That judgment in Suit No. FHC/L/CS/1710/2013 which Kasmal lost, appealed and suspended for “out of court” settlement is still valid until upturned, even as no agreement backed the judgment;
“His entering judgment for Kasmal who did not present evidence of its entitlements to the ₦579.131billion together with 10 per cent interest claim;
“His entering judgment when Kasmal tendered no contract on Stamp Duty collection, or entitlement to 15 per cent commission, or entitlement to 10 per cent interest on the sum awarded from 1st January, 2015 to 31st January, 2020; and
“His entering judgment for Kasmal when there was no factual or legal justification for the Court to have allowed Kasmal case to succeed on any merit.”
Reliefs sought by the 36 states in the Appeal
Consequent upon the above seven grounds of appeal, the 36 state Attorney-Generals sought relief from the Appeal Court to set aside the judgment of the Federal High Court delivered by Justice Ekwo for Kasmal on the 11th day of October 2024; and also to strike out all the claims for incompetence or lack of proof.
Non-governmental appellant
It will be recalled that another appellant, School of Banking Honours (SBH), who holds Copyright Certificate No. LW1023 on all Stamp Duty collections from banking sector, had complained about Kasmal’s continued abuse of court process as it secured the new judgment from Justice Ekwo in October 2024 on same Stamp Duty matter.
SBH filed its appeal on the following grounds: “That an Appeal Court had in 2016 dismissed Kasmal claims to any role or commission on Stamp Duties in a judgment obtained from Hon. Justice C.J. Aneke in Suit No. FHC/L/CS/1462/2013;
“That a fake and unregistered company [alleged], Kasmal Financial Service Ltd, was used to obtain court order from Hon. Justice C.J. Aneke, and which court rules automatically nullifies Kasmal from further consideration;
“That ₦10.367 billion collected by Kasmal from former Accountant-General of the Federation was under a written undertaking on its purported “commitment” to SBH [Copyright-holder] and submitted to Attorney-General of the Federation, but that SBH never knew about it, hence it was on false pretenses;
“That a purported “single” NIPOST Contract fraudulently ended, either in October 2018 or October 2015, and was not tendered in the Court for clarification;
“That a purported “single” NIPOST Contract has now strangely extended to cover up to 31st January 2020; and
“That a commission of five per cent that was sworn to by Kasmal before Hon. Justice C.J. Aneke has miraculously jumped to 15 per cent in the new claim before Hon. Justice I.E. Ekwo.”
Kasmal did not present any NIPOST Contract in court
“Consequent upon the above grounds, it has become very worrisome that Kasmal has not presented any documented NIPOST Contract to substantiate its scope of engagement, tenor of engagement, commission payable, and other information that could assist the Court for decisions on its claims against Stamp Duty of government,” SBH stated.
2016 Appeal Court judgment had nullified Kasmal
A 2016 Appeal Court judgment had nullified NIPOST authority to enter into any Stamp Duty contract with Kasmal, hence the Attorney General of the Federation promptly took over the collection, remittance and recovery of all Stamp Duties in banking sector from NIPOST.
This was allegedly done under the authority conferred on it by Section 111 of the Stamp Duties Act in protecting the researched revenue that was brought by SBH to government in 2012 under the Copyright Act 2004 (as amended).
No evidence of work done by Kasmal for commission
Kasmal has not been able to justify work done by it in claiming commission on the ₦3.86 trillion declared for sharing in Supreme Court.
“Rather, it was SBH that explained that the ₦3.86 trillion declared was exactly 50 per cent of its Demand Notice for ₦7.72 trillion served on the Nigeria Inter-Bank Settlement System “NIBSS” as Stamp Duties due in 2013/2014 assessment, and for which it was invited for the full recovery in 2015.
“Relevant Federal Government of Nigeria (FGN) agencies such as the Revenue Mobilisation Allocation and Fiscal Commission (RMAFC), Finance Ministry and even EFCC vetted the Demand Notice on NIBSS under the authority granted by the FGN contract with SBH, dated the 12th October, 2017.
“And this also confirmed that its (SBH’s) Copyright was in-force [for tenure provided in First Schedule of the Copyright Act 2004, as amended].
Kasmal’s breach of its full and final settlement
“Kasmal eventually breached the written undertaking submitted to Attorney-General of the Federation on its “full and final” settlement claim (under its purported commitment to the School of Banking Honours).
“It now remains to see if it can legally keep the ₦10.3 Billion collected from Accountant General of the Federation on its misadventure with NIPOST before pursuing any further claims, or whether its “false pretenses” of collecting the monies on a purported commitment to SBH should not attract the EFCC to seek for recovery of the government revenue fund.
“The nation now awaits how the Appeal Court will handle above matters which have been adjourned to 28th April 2025,” a source close to the Court of Appeal disclosed.
