NIPOST Cannot Enforce Stamp Duties … Agents Appointed For Such Purpose Are Illegal

Relevant Facts:

On 13 April, 2017 the Federal High Court sitting at Abuja (the Court), with the Honourable Justice G.O. Kolawole presiding, held the activities of the Nigerian Postal Service (NIPOST) in seeking to enforce the provisions of the Stamp Duties Act, 1939 (SDA) to be illegal. This pronouncement was made in the Suit No. FHC/ABJ/CS/869/2015 (the Suit) between Nigerian Bottling Company Ltd (NBC) as Plaintiff and NIPOST and one of its agents, Bethda International Merchant Nig. Ltd as Defendants.

NIPOST had authorised several agents, including the one it was sued with, to enforce the provisions of the SDA by compelling businesses, including NBC to purchase and affix NIPOST's N50 adhesive stamps on receipts issued by the businesses. According to NIPOST, this was pursuant to the provisions of Section 89 of the SDA. NBC objected to this action particularly because the stamp duty payable on receipts is 2kobo and not N50, more so that NIPOST cannot compel it to