Attorneys-general of the 36 states have sued Abubakar
Malami, attorney-general of the federation (AGF), over the alleged failure of
the government to remit funds generated from stamp duties into state accounts.
The states are arguing that they are the sole authority to
collect stamp duties and not the federal government.
This is coming at a time where there is conflict between
some states and the Federal Inland Revenue Service (FIRS) over the collection
of value-added tax (VAT).
A federal high court in Port Harcourt had placed a restraining order on the Federal Inland Revenue Service (FIRS) from collecting VAT in Rivers and directed the state government to take charge of the duty.
Following the court judgement, Lagos asked FIRS to stop
issuing demand notices for VAT payments in the state.
In the suit filed before the supreme court on August 24 and
marked SC/CV/690/2021, the state attorneys are asking the court to determine
whether or not “having regard to the mandatory provisions of Section 4(2) of
the Stamp Duties Act Cap. S8 Laws of the Federation of Nigeria (LFN) the
plaintiffs (all the state attorneys) are not the sole authority to administer and
collect stamp duties on all transactions involving individuals/persons within
their respective states?”
They also asked the court to determine “whether having
regard to the provisions of Section 4(2) of the Stamp Duties Act Cap. S8 of the
Laws of the Federation of Nigeria read in conjunction with the provisions of
Section 163, items 58 and 59 of the Second Schedule part I and items 7 (a) and
(b) of the second Schedule part II and other provisions of the Constitution of
the federal republic of Nigeria, 1999 (as amended), the defendant (Malami)
could claim, retain, distribute or in any other manner deal with the monies or
sums collected as stamp duties on individual persons transactions within the
respective states of the plaintiffs without reference to, concurrence of, input
or agreement of the plaintiffs?”
The plaintiffs are also asking the court to ascertain
whether or not they are “entitled to 85% of all stamp duties collected on
electronic money transfer levy, on electronic receipts or electronic transfer
for money deposited in deposit money banks and financial institutions, on any
type of account to be accounted for and expressed to be received by the person
to whom the transfer or deposit is made in the plaintiffs’ respective states”.
Among other reliefs sought and should the issues above be
resolved in their favour, all 36 states through their attorneys-general are
praying the court for a declaration that they “are the sole authorities
entitled to administer and collect stamp duties on all transactions involving
individuals within their respective states”.
“A declaration that the defendant is not entitled to
collect, administer, or keep the proceeds of any stamp duties on transactions
involving individuals within the respective states of the plaintiffs or any
manner interfere with the Plaintiff’s right and authority in the administering
the provision of Section 4(2) of the Stamp Duties Act Cap. S8 Laws of the
Federation of Nigeria,” they prayed.
“A declaration that the plaintiffs are entitled to all the
sums of money collected by the defendant as stamp duties through whatever
source or means in their respective states from 2015-2020 and thereafter till
the time of the judgment of this honourable court with respect to individual
persons’ transactions.
“A declaration that the plaintiffs are entitled to 85% of
all stamp duties collected on electronic money transfer levy, on electronic
receipts or electronic transfer for money deposited in deposit money banks and
financial institutions, on any type of account to be accounted for and
expressed to be received by the person to whom the transfer or deposit is made
in the plaintiffs’ respective states.”
The plaintiffs also want the court to issue an order
directing Malami to account for and pay back all monies and collected by way of
stamp duties on individual persons’ transactions within the respective states
of the Plaintiffs from the period 2015-2020 and thereafter till the time of the
judgment.
“An order of this honourable court directing the defendant
to pay over to the Plaintiffs all the sum of monies amounting to One Hundred
and Seventy Six Billion, Sixty Seven Million, Four Hundred Thousand Naira (N
176,067,400,000,00) representing ascertained and admitted collected stamp
duties on individual persons’ transactions within their respective states for
the period of 2015- 2020 and thereafter till the time of the judgment of this
honourable court or any other sum as the plaintiffs may be found entitled by
the honourable court.
“An order of perpetual injunction restraining the defendant
by himself, privies, agents or any persons by whatever name or how so ever
called from appointing anyone for the purpose of collecting Stamp Duties on
individual persons’ transactions within the respective states of the plaintiffs
henceforth.”
No date has been fixed for hearing yet.
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