Sometime in 2013, the Nigerian Postal Agency [NIPOST] entered into an agreement with an agent to collect from banks, the sum of ₦50 as stamp duty on all receipts including electronic bank transfers and teller deposits of ₦1,000 or more.
The parties agreed the new rate on the basis that the Stamp Duties Act (which imposes ₦1.50k for receipts with a value of not less than ₦40) had been amended by a 'Federal Government Financial Regulations 2009'.
Many of the banks argued that the amendment was not in line with the law and therefore refused to charge and remit the ₦50 stamp duty to the agent. To compel compliance the agent successfully sued all 22 banks at the Federal High Court. In another suit, the agent also successfully sued the Central Bank of Nigeria [CBN], directing the CBN to compel the banks to comply with collection of the stamp duties. Following the decision, the CBN issued a circular directing banks to comply.
Dissatisfied with the earlier decision, one of the banks challenged the decision successfully at the Court of Appeal. Read our alert for further details and get a copy of the Court of Appeal judgment below.
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