LAGOS, Nigeria (VOICE OF NAIJA)-The Federal High Court in Abuja has included the School of Bank Honours LTD/GTE as a co-defendant in a legal case concerning the commission or percentage from deposits in the CBN NIPOST stamp duty collection account by commercial banks.
During proceedings, the lead counsel for the School of Bank Honours, Oladipo Okpeseyi, SAN, informed Justice Inyang Ekwo that the Nigerian Postal Service (NIPOST), after careful consideration, entered into a Master Service Agreement with his client on September 14, 2012.
This agreement appointed the School of Bank Honours as NIPOST’s agent, representative, and consultant for recovering the N50 Stamp Duty on all electronic cashless transfers and Manual Bank Teller Deposits.
The commission basis for this service was set at 20% on each N50 recovered.
Representing the Central Bank of Nigeria (CBN) and the Attorney-General of the Federation, Chief Adeniyi Akintola SAN argued before the Federal High Court Abuja that the purported appointment of Kasmal by the Nigerian Postal Service (NIPOST) was invalid from the start.
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He based this assertion on the grounds that stamp duty charges on bank transfers and deposits constitute a tax exclusively administered by the Federal Government through the Federal Inland Revenue Service (FIRS).
Kasmal’s lawyer, Dr. Alex Izinyon SAN, argued that despite the 3.8 trillion naira in the Stamp Duty Collection Account allocated for distribution among various entities (Local Government, State Government, and Federal Government), his client deserved 15% of the funds as a consultant.
In its motion for joinder dated April 8, 2024, the lead consultant of the School of Honours on the Federal Government (FGN) Contract for Stamp Duties Recovery, Mr. Adekola Adetoya, deposed in an affidavit supporting the motion.
He asserted that his company, as appointed by the Nigerian Postal Service (NIPOST), is responsible for collecting the N50 Stamp Duty on all electronic cashless transfers and Manual Bank Teller Deposits, with a commission basis of 20% on each N50 recovered.
Adetoya highlighted that his company holds the copyright on the N50 Stamp Duty for the Federal Government of Nigeria and obtained approval from the Central Bank of Nigeria (CBN) to collaborate with Deposit Money Banks and other financial institutions for stamp duty collection.
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Furthermore, he explained the delay in obtaining necessary circulars from the CBN and sought assistance from Kasmal Group, chaired by the late Mr. Buruji Kashamu, to navigate the process. The assistance entailed a commission fee arrangement.
During the court hearing, Okpeseyi, representing the School of Honours, urged Justice Ekwo to join his client as a co-defendant, citing the jeopardy to their rights and interests if not included. The judge adjourned the hearing to June 5, 2024, warning against disruptions and penalties for disruptive behavior.