The Attorney Generals of all 36 states in Nigeria have joined forces with the Central Bank of Nigeria (CBN), the Attorney General of the Federation (AGF), and the School of Banking Honours (SBH) to challenge Kasmal’s claim of N579.131 billion from Stamp Duty monies.
Kasmal, a company linked to the late Prince Buruji Kashamu, had secured a judgment from the Federal High Court in Abuja, ordering the government to pay the massive sum. However, the 36 state Attorney Generals have appealed the judgment, citing seven grounds of error.
The appeal, filed on March 27, 2025, alleges that the trial judge, Hon. Justice I.E. Ekwo, made several mistakes, including hearing the case by originating summons despite hostile and disputed facts. The appeal also claims that Kasmal lacked the necessary locus standi to institute the case and that the judge failed to consider the constitutional rights of the 36 states.
Furthermore, the appeal argues that Kasmal did not provide evidence of its entitlement to the claimed amount and that the company’s contract with NIPOST, the Nigerian Postal Service, was not tendered in court.
Grounds for 36 State Governments’ Appeal
The 36 State Attorney Generals have complained about the whole Judgment delivered by Hon. Justice I.E. Ekwo for Kasmal on the 11th day of October 2024, and that errors committed by the Judge were on seven grounds, namely:
- Hearing the case by Originating Summons when the facts are very hostile and highly in dispute to adversely affect the interests of 36 States;
- his entertaining and granting reliefs for Kasmal when materials before the Court did not disclose its locus standi to institute the case and claim reliefs;
- his entertaining the suit when the 36 States were not joined to be heard, thereby violating their constitutional rights to a fair hearing;
- his holding that Kasmal was short-paid, and to have more payment on the N10.3 Billion negotiated as “full and final” claim [under “false pretense” of a written undertaking on its commitment to SBH], and that Judgment in Suit No. FHC/L/CS/1710/2013, which Kasmal lost, appealed and suspended for “out of court” settlement, is still valid until upturned, even as no agreement backed the Judgment;
- his entering judgment for Kasmal, who did not present evidence of its entitlements to the N579.131 Billion together with 10% interest claim;
- his entering judgment when Kasmal tendered no Contract on Stamp Duty collection, or entitlement to 15% commission, or entitlement to 10% interest on the sum awarded from 1st January 2015 to 31st January 2020; and
- his entering judgment for Kasmal when there was no factual or legal justification for the Court to have allowed Kasmal case to succeed on any merit.
- Reliefs sought by 36 States on the Appeal
Consequent upon the above seven grounds of appeal, the 36 State Attorney-Generals sought relief from the Appeal Court to set aside the Judgment of the Federal High Court delivered by Hon. Justice I.E. Ekwo for Kasmal on the 11th day of October 2024 and also to strike out all the claims for incompetence or lack of proof.
Reliefs sought by 36 States on the Appeal
Consequent upon the above seven grounds of appeal, the 36 State Attorney-Generals sought relief from the Appeal Court to set aside the Judgment of the Federal High Court delivered by Hon. Justice I.E. Ekwo for Kasmal on the 11th day of October 2024; and also to strike out all the claims for incompetence or lack of proof.
The Non-governmental Appellant
It will be recalled that another appellant, School of Banking Honours, who holds Copyright Certificate No. LW1023 on all Stamp Duty collections from banking sector, had complained about Kasmal’s continued abuse of Court process as it secured this new judgment from Justice I.E. Ekwo in October 2024 on same Stamp Duty matter.
SBH filed its Appeal on the following grounds: (a) 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; (b) 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; (c) 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; (d) that a purported “single” NIPOST Contract fraudulently ended either in October 2018, or October 2015, and was not tendered in the Court for clarification; (e) that a purported “single” NIPOST Contract has now strangely extended to cover up to 31st January 2020; and (f) 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:
Consequent upon the above grounds, it has become very 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
An Appeal Court judgment had in April 2016 even 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 Commission
Kasmal has not been able 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].
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 pretenses” of collecting the monies on a purported commitment to the School of Banking Honours should not attract EFCC recovery of the government revenue fund.
The case has been adjourned to April 28, 2025, and the nation awaits the Appeal Court’s decision on this critical matter.
