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Gudaji Kazaure and the Stamp Duty: A Transfer of Confusion




The Oasis Reporters


January 10, 2023

 

 

 

 

Hon. Gudaje Mohammed Kazaure


By Datong Dominic Gwaman




On December 17, 2022, Hon. Gudaji Kazaure, a serving House of Representatives member in the 9th assembly perplexed the world with an allegation of a fraud of over 89 Trillion Naira in the Banking sector.




The amount is allegedly accruing from the stamp duty payments imposed in 2016 on all credits to accounts in order to raise revenue for the Government of Nigeria from non-oil sources.



This fraud alleged by Gudaji, on the Nigerian Human Rights Radio also known as Brekete Family Radio, involves primarily, the Governor of the Central Bank and the CEOs of all banks.




This writeup is a small research to give a perspective to the allegation to help the public understand the stamp duty saga in order to allow them take an independent decision on the allegation.



This write-up is based on data from the Central Bank of Nigeria website which is publicly available for public scrutiny.



As a disclaimer, this is purely personal research and it is not sponsored by any person or organization. It is also my perspective that can be challenged by anyone who has a superior data-based argument.




Data used in this write-up is also available and covers January 2016 to August 2020. Since there is no data from August 2020, we will extrapolate in order to cover the period up to 2022.




In order to get an understanding on the Stamp duty, it is important we give a brief background on the subject.



In January 2016, the Central Bank of Nigeria issued a statement to Deposit Money Banks which the Federal Government had backed.




This was backed with a Supreme Court judgement on the STAMP DUTIES ACT CAP. 441 LFN, 1990.




The statement directed Banks to charge a sum of N50.00 on each bank deposit where the receiving account with some terms and conditions applied.




The Banks were directed to move the money on a monthly basis to NIPOST Stamp Duty Collection Account No. 3000047517 domiciled in the CBN.




The CBN on its website has a record of all electronic transfers up to August of 2020.

https://www.cbn.gov.ng/Paymentsystem/ePaymentStatistics.asp


Of particular interest is the period from January 2016 to the available records in August of 2020. Among the records are records of merchant payment applications deployed by NIBSS which are not part of the stamp duty payments.




The record shows volume of transactions (number of transactions) and the value of transactions (total amount of transactions). Of particular interest to the stamp duty is the volume as the stamp duty is only charged on the volume of the transaction.





For brevity, the categories of transactions that this writeup considered as eligible for stamp duties include: Cheques NEFT, ATM, WEB, MMO, NIP, NAPS, Intra-bank e-payment transactions, USSD TRANSFERS, MOBILE APP TRANSFERS, DIRECT DEBITS, RTGS TRANSFERS. Some of these channels have transactions that are not eligible for stamp duties however, for the lack of enough data, they are allowed to be part of the eligible transactions.




The total number of unique transactions on these channels from January 2016 to August 2020 is 102,830,789,113. While this includes some ineligible transactions, it still gives an indication of the relationship between the Gudaji figures and the reality.




If we multiply the 102 Billion transactions by N50.00 we will arrive at N5,141,539,455,650.00. This means that the amount raised for 5 years is about 5 Trillion Naira, an average of 1 Trillion per year.



One can confidently say that between 2016 and 2022 at an average of 1 Trillion per year, Nigeria would have accumulated only a maximum of 7 Trillion Naira from Stamp Duty charges.



From the foregoing, the following claims of Hon. Gudaji Kazaure are not valid:



1. That there was no account opened for the Stamp Duties was false as the CBN had given the banks an account with Name: NIPOST Stamp Duty Collection and Account No. 3000047517.



2. There is no evidence that CBN collected up to 89 Trillion Naira in Stamp Duties from Nigerians. He might need to check his facts and figures and return to speak with the public.


Brekete Radio/TV host, Ahmed Isah.



What this writeup has no data to prove is if the amount has been remitted accordingly or not. This will help the Brekete Family to commence an investigation into the allegations by Hon. Gudaji Kazaure to come to the truth of the matter.




Written by Datong Dominic Gwaman

Conflict, Security and Development Expert and also a Leadership Professional
dgdatong@gmail.com

Greg Abolo

Blogger at The Oasis Reporters.

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