The Court of Appeal in Abuja has overturned a controversial ₦579 billion judgment earlier awarded to Kasmal International Services Limited against the Central Bank of Nigeria (CBN), ruling that the funds in question belong to the Federation and not to any private entity.
The appellate court, in a decision delivered on Wednesday, July 16, 2025, set aside the October 2024 ruling of the Federal High Court which had ordered the CBN to pay Kasmal 15 percent of all stamp duties collected between January 2015 and January 2020—amounting to a staggering ₦579 billion—as commission for services allegedly rendered in the recovery of unremitted stamp duties from Nigerian banks.
In the now-overturned judgment, Justice Inyang Ekwo of the Federal High Court had held that Kasmal was entitled to the commission based on a purported agreement with the Nigerian Postal Service (NIPOST), mandating it to recover stamp duties on behalf of the Federal Government through electronic banking transactions.
However, in its appeal, the CBN, joined by the Attorney-General of the Federation and the School of Banking Honours, argued that the stamp duty revenues in question are public funds meant to be remitted into the Federation Account and not subject to private commissions. The appellants also challenged the legitimacy of Kasmal’s contractual authority and questioned the validity of the initial court’s interpretation of the Stamp Duties Act.
The Court of Appeal agreed with the appellants, ruling that the Federal High Court erred in law by granting a private entity access to funds that rightfully belong to the public treasury. It held that the proceeds of stamp duties are public revenues, to be shared constitutionally among the federal, state, and local governments.
This judgment not only nullifies the ₦579 billion award to Kasmal but also reinforces the government’s exclusive right to control and distribute revenues generated from stamp duties and other statutory collections. Legal analysts say the decision could have wide-reaching implications for private consultants and firms currently engaged in revenue recovery on behalf of government agencies.
While the CBN and federal authorities have welcomed the ruling as a victory for public accountability and fiscal discipline, it remains unclear whether Kasmal will seek redress at the Supreme Court. The case continues to stir debate over the use of private contractors in managing government revenue and the legal framework governing such engagements.
