Lagos State Govt. Sues FG over Rights to Collect Stamp Duties

The Lagos State Government has dragged the Federal Government before the Supreme Court, on the interpretation of the provisions of the Stamp Duties Act, Laws of the Federation, 2004.

In the suit with the No: SC245/2017 filed by the State Attorney-General and Commissioner for Justice, Mr. Adeniji Kazeem, the State is challenging the authority of the Federal Government in the collection of stamp duties in the State.

Lagos State Government, in the Originating Summons is asking the Apex Court to determine amongst other things, whether the Federal Government has any power to collect and keep money paid as Stamp Duties on behalf of Federating units pursuant to sections 4(1) of the Stamp Duties Act, Cap S8 Laws of the Federation of Nigeria, 2004.

Joined as defendant in the suit is the Attorney-General of the Federation and Minister of Justice.

The State Government wants the Apex Court to determine whether, in view of the clear provisions of Section 4(2) of the Stamp Duties Act, the defendant through its banker, Central Bank of Nigeria (CBN), possesses the power and authority to collect and keep custody of the deducted sum remitted to it by commercial banks operating in the territory of Lagos State from January 15, 2016 till date, with respect to the 50.00 deducted as Stamp Duty receipt on every deposit of 1,000.00 and above.

The plaintiff is also asking the court to determine whether in view of the provisions of section 4(2) of the Stamp Duties Act, Lagos Government is entitled to collect as duties on receipt with respect to deductions by Banks of the sum of 50.00 on every transaction of 1,000.00 and above as deposit between persons or individual transactions within the territory of Lagos.