The 36 state governors have joined forces with the Central Bank of Nigeria (CBN), the Attorney-General of the Federation (AGF), and the School of Banking Honours (SBH) in the suit against Kasmal, the company of late Prince Buruji Kashamu, over the ownership of the sum of ₦579.1 billion stamp duty.
Kasmal, through its counsel, Dr Alex Izinyon, SAN, had secured a judgment from 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.
However, the states and the federal institutions challenged the ruling, stating that Kasmal had no verifiable contract with the Nigerian Postal Service (NIPOST) to justify its claims.
At the resumed hearing of the appeal in Suit No. FHC/ABJ/CS/335/2024 on March 27, 2025, in Abuja, the 36 states, represented by their counsel, Prof. Yusuf Ali SAN and others, officially joined the appeal against the ruling of Justice I.E. Ekwo.
They aligned with the legal teams representing the CBN and AGF, led by Chief Adeniyi Akintola SAN, and SBH’s legal team, headed by Chief Oladipo Okpeseyi SAN.
The Governors outlined seven key grounds for their appeal, including:
The case was wrongly heard via an originating summons despite the existence of contentious facts.
Kasmal lacked the legal standing to make the claims.
The 36 states were not given an opportunity to be heard, violating their right to a fair hearing.
The judgment improperly awarded additional payments to Kasmal despite a previous agreement settling its claims.
Kasmal failed to provide evidence justifying its entitlement to the ₦579.131 billion claim.
There was no contract presented to support its demand for a 15% commission or 10% interest.
The ruling lacked factual or legal justification.
In addition, the School of Banking Honours (SBH), a non-governmental appellant with a copyright claim over banking sector stamp duty collections, challenged Kasmal’s claims.
“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, 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 N10.367 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.
“That a Commission of 5% that was sworn to by Kasmal before Hon. Justice C.J. Aneke has miraculously jumped to 15% in the new claim before Hon. Justice I.E. Ekwo.”
Kasmal did not present any NIPOST Contract in court It is 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.
2016 Appeal Court Judgment had nullified Kasmal
The Court of Appeal judgment of April 2016 had nullified “NIPOST authority to enter 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 under the authority conferred on it by Section 111 of the Stamp Duties Act in protecting the researched revenue that was brought by the School of Banking Honours to government in 2012 under the Copyright Act 2004 (as amended).”
No evidence of Kasmal work done for CommissionThere is no verifiable evidence by Kasmal to justify work done by it in claiming commission on the N3.86 trillion declared for sharing in Supreme Court.
“Rather, it was School of Banking Honours that explained that the N3.86 trillion declared was exactly 50% of its Demand Notice for N7.72 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 FGN agencies such as the Revenue Mobilization, Finance Ministry and even EFCC vetted the Demand Notice on NIBSS under the authority granted by Federal Government of Nigeria contract with School of Banking Honours dated the 12th October 2017, and which also confirmed that its Copyright was in-force (for tenure provided in First Schedule of the Copyright Act 2004, as amended),” SBH stated.
Kasmal breach of its full and final settlement“As 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 N10.3 billion collected from Accountant General of the Federation on its misadventure with NIPOST before pursuing any further claims, or whether its “false pretences” of collecting the monies on a purported commitment to School of Banking Honours should not attract EFCC recovery of the government revenue fund,” SBH noted.
Stakeholders are awaiting how the Appeal Court will handle case which has been adjourned to April 28, 2025.
