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Stamp duty: Court refuses to restrain CBN from disbursing ‘trillions’ deposited by commercial banks

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The Federal High Court sitting in Abuja has refused to restrain the Central Bank of Nigeria (CBN) from disbursing all accrued deposits paid into the CBN NIPOST stamp duty collection account by all Deposit Money Banks (DMBs) or commercial banks.

Justice Inyang Ekwo declined the request made by Kasmal International Services whose legal team claimed that it has a percentage in the N3.8 trillion naira domiciled in the Stamp Duty Collection Account.

The CBN and the Attorney-General of the federation were joined as respondents by the applicant in a motion ex-parte in the suit marked FHC/ABJ/CS/335/2024.

The applicant’s lawyer, Dr Alex Izinyon SAN submitted that his client was appointed by the Nigerian Postal Service to represent NIPOST in the collection of 50 naira on all receipts given by any bank or financial institution in acknowledgement of services rendered in respect of electronic transfers and teller deposits from 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 50-naira deduction.

In his motion seen by ThePressNG, the lawyer stated that his client’s percentage has not been fully paid as agreed.

He argued that if disbursement is done to the exclusion of the plaintiff’s percentage, the plaintiff will be highly prejudiced and will suffer irreparable losses.

The motion reads,”

The applicant prayed for the following orders against the CBN,

In the alternative, the applicant also prayed for an “order of this Honourable Court directing the Defendants/Respondents to appear before this Honourable Court to show cause why the reliefs sought ought not to be granted.”

Rather than grant all the prayers, the judge asked the CBN to appear before him and explain why the request of the applicant should not be granted.

His order dated March 18, 2024 and seen ThePressNG on Friday, reads,

At the resumed sitting on Friday, the court was informed that the CBN’s legal team was yet to show cause as directed.

Justice Ekwo then adjourned the matter to April 16 for hearing.

 

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