Finance
How N20trillion Stamp Duty Revenue Disappeared From Federation Account


Information about the revenues from stamp duties in the last 3 years estimated at N20 trillion disappears as the federal agencies involved in the collection have refused to provide information, despite the Freedom of Information (FOI) request filed by The ICIR.
The FOI requests were sent on July 31 on behalf of LeaksNG to the Central Bank of Nigeria (CBN), Office of the Secretary to the Government of the Federation (OSGF), Nigerian Postal Service (NIPOST), and the Nigeria Inter-Bank Settlement System (NIBSS) PLC.
Information requested for include a report of stamp duty remittances by Deposit Money Banks and other financial institutions, the current status of the Stamp Duty Central Account domiciled in the CBN, stamp duty revenue remitted to the CBN by NIBSS between 2016 and 2017, amount of revenue collected by NIPOST between 2010 and 2016 and so on.
Two months after the requests were dispatched, on September 26, letters of reminder were again sent to the various offices to draw their attention to the enquiry.
Nevertheless, till the time of this report, none of the institutions has fulfilled its legal obligations by providing the information asked for.
While NIPOST and NIBSS have not bothered to respond at all, others gave one excuse or the other for their inability to oblige.
Different Reasons, Same Conclusion
Of all the five agencies that received enquiries from the ICIR, three responded, but sidestepped the responsibility to disclose information.
The OSGF, in its reply dated August 9, 2018, said it had referred the FOI application to the Federal Inland Revenue Service (FIRS), which according to it is better positioned to provide answers.
“After a careful review of the application,” wrote J.O. Obule, Acting Legal Adviser to the Secretary, “the Office is of the view that the Federal Inland Revenue Service (FIRS) has a greater interest and is the custodian of the information sought and therefore would be in a better position to provide same.
“Please be informed that your application has been referred to the FIRS accordingly and you are advised to deal with it directly,” he added.
FIRS would later shift responsibility to Nigerian Postal Service, NIPOST
In a letter dated November 5 and signed by Ike Odume, its Director of Legal Services, the FIRS wrote:
“The Legal Service Department of the FIRS received a letter from the International Centre for Investigative Reporting dated 26th September 2018 requesting for details for Stamp Duties recovered from NIPOST. We regret to inform you that FIRS does not collect Stamp Duties from NIPOST.
“Therefore we ask that the above request be directed to NIPOST.”
NIPOST is yet to respond to similar enquiries sent to them.
Finally, the Central Bank of Nigeria replied to The ICIR‘s request on November 6 and, in the letter signed by R.J. Monguno of the Corporate Secretariat, it said it cannot provide the information sought as the matter is the subject “of a suit before the Supreme Court of Nigeria and is therefore subjudice”.
The court action referenced in this letter is yet unclear.
The status of unremitted revenue from stamp duties said to have run into several trillions of naira over the years, has been shrouded in secrecy.
In November 2017, the Senate kick-started a probe into the allegation that stamp duties revenue which accumulated over a period of five years and is valued at over N20 trillion has not been paid into the federation account.
Following a motion raised by John Enoh, the senator representing Cross River Central district, the Senate had instructed committees on finance and banking, insurance and other financial institutions to investigate the scandal and report back to it within a period of eight weeks.
“The Senate is worried that the provision for stamp duty in the revenue framework of the nation’s annual budget for 2015, 2016 and 2017 has been N8.7 billion, N66 billion and 16.9 billion respectively despite the above reports; apprised of the anti-stamp duties collection stance of the Nigerian Inter-Bank Settlement System (NIBSS),” Mr Enoh said.
“It is currently being accused of systemic diversion of huge revenue flows from stamp duties collection on the electronic transfer receipt on online bank transactions, and the necessity to demand notice on all unremitted stamp duties.
“The Senate is convinced of the duties and responsibilities of the National Assembly to ensure the harnessing of all sources of revenue to the government of the federation, and to curb all forms of wastefulness, corruption and diversion of funds belonging to the federation.”
The School of Banking Honours (SBH) is the consultancy agent authorised in October 2017 by the federal government, alongside the International Investment Law and Arbitration, to recover stamp duty revenue that has not been remitted.
It raised alarm in March that the NIBSS has been uncooperative so far in SBH’s efforts to recover unremitted stamp duty revenue of about $53.3 billion (N19.4 trillion) borne out of inter-bank electronic transactions.
According to Tola Adekoya, SBH’s Project Consultant and Chief Executive Officer, N7.719 trillion was due in 2015 as accumulated yet unremitted revenue to the federal and state governments of Nigeria. In total, he said, the funds are about N20 trillion, out of which not up to one per cent has been remitted appropriately.
He also said the presidency, through the office of the secretary to the government, has ordered the CBN to cooperate with SBH in implementing its mandate.
However, NIBSS has refused on multiple occasions to grant access to data of relevant inter-bank transactions that passed through its central switch.
“We served the demand notice because NIBSS is the agent of banks that handles their transactions,” Mr Adekoya said.
“Banks don’t have any power over NIBSS, once they ascertain a liability, they debit the banks immediately and that is why NIBSS is going to be a strategic partner in recovering the unremitted stamp duty revenue.
”It was indicated in the first paragraph of the letter sent to CBN and NIBSS that we should commence with NIBSS and that is what we are doing. We are following due process.
According to its website, the NIBSS, “was incorporated in 1993 and is owned by all licenced banks including the CBN.”
It manages inter-bank payments so as to remove bottlenecks characteristic of fund transfers and operates the Nigeria Automated Clearing System (NACS).
The NIBSS board, “is composed of the Deputy Governor (Operations) of the Central Bank of Nigeria as the Chairman, representatives of Banks as Directors, Executive Directors and the Managing Director/CEO, who heads Executive Management group of the organisation”.
The House of Representatives Committee on Telecommunications, in October 2017, summoned Kemi Adeosun, the then finance minister; Godwin Emefiele, governor of the CBN, and Adebisi Adegbuyi, post-master general of NIPOST, to provide explanations on why billions generated from stamp duty charges were kept in commercial banks and the CBN.
Adebisi Adegbuyi, post-master general of NIPOST
The committee’s resolution was triggered by the revelations by Zhigun Usman, who is NIPOST’s Director of Finance and Investment, who said the sum of N13.4 billion had been deposited to the CBN by commercial banks.
Mr Usman had, however, added that the figure is ‘suspect’ as the banks’ remittances ”oddly increased geometrically after NIPOST announced plans to audit the accounts”.
FIRS, NIPOST: Fight For Relevance
The controversy as to who is responsible for what and the fate of revenue generated so far has been on for years.
In February 2016, the Revenue Mobilisation, Allocation and Fiscal Commission (RMAFC) had to wade in to strike an agreement between the competing forces on access to a revenue account estimated to attract over N2.5 trillion annually.
Moreover, in which authority the control of stamp duty funds resides has also been a contentious matter, especially between the FIRS and NIPOST. While FIRS has claimed stamp duties collection as part of its statutory functions, NIPOST appears to disagree.
Ike Odume, FIRS’s Director Legal Services, described a controversial bill to amend provisions of the Stamp Duties Act as an attempt to usurp its duties. According to him, the Act as it exists is a tax legislation which has nothing to do with NIPOST.
The postmaster-general of the federation, however, said, in his submission, that the amendment is crucial because the law has become old-fashioned and that NIPOST is only requesting for permission to sell stamps, either manually or electronically.
“We are seeking the amendment of the Act to include the sale of a postage stamp. We are not collecting the tax. It is in the interest of Nigeria to draw a line between duty and stamp. We want to sell our stamps,” Mr Adegbuyi said.
Between December 2016 and January 2017, NIPOST put out adverts for forensic auditors to peruse bank records in an attempt to confirm the compliance level of banks when it comes to remittances.
But, as gathered by Punch, the postal service had to ditch its plan after the CBN said it could use its supervisory powers to achieve similar results.
NIBSS Denies Responsibility
Samuel Oluyemi, NIBSS’ Deputy General Manager of Corporate Services, in an interview with TheCable said, despite claims to the contrary by the SBH, the NIBSS is not attempting to prevent the federal government from realising the full potentials of the Stamp Duties Act.
He explained this is because the company is neither in possession of any revenue accruing from stamp duties nor is aware of how much been collected under the scheme. NISS jurisdiction does not cover anything having to do with stamps or cheques, he added.
He also revealed that there is no mechanism presently in place to track how much each bank is collecting and that banks charge the duty ”at their own discretion” as not even all of them make the necessary deductions.
He recommended that the enabling act for the collection of stamp duty is reviewed to specify what should be collected.
Governors’ Forum Angle
When contacted by The ICIR, Abulrazaque Bello-Barkindo, who is the media and public affairs head at the Nigerian Governors’ Forum (NGF) Secretariat, insisted the forum cannot comment on the subject “at the moment because the case is subjudice”. He declined to shed light on what the litigation is about or who the parties are.
“There is post office interest, there is governors’ interest, so we are not talking about it until the case is adjudicated on,” he explained.
He was also asked whether a report has been submitted by the three-man committee established by the NGF, in April, and headed by Ibikunle Amosun, governor of Ogun state, which was mandated to investigate the allegations of non-remittance. ”No, they have not,” he replied.
“As a matter of fact, there has not been any meeting regarding that up till now. The governor has been very busy, and we have not had it on the agenda for the last four, five meetings.”
The committee had been given one week to submit its findings to the forum.
NGF’s concern regarding the unexplained non-remittance of the bulk of the duty arises as a result of the percentage guaranteed to flow to the thirty-six states.
With the current sharing formula, while the federal government takes the lion’s share of 52.68 per cent from the federation account, the state governments collectively get 26.72 per cent and the country’s 774 local governments get 20.6 per cent.
Adebisi Adegbuyi, Postmaster-General of NIPOST, did not answer calls from The ICIR and has not responded to texts asking, among other questions, if the postal office still intends conducting an independent audit of bank records.
Source: Premium Times.
Finance
Flutterwave Powers Local Businesses in Ghana Through Pay With Bank Transfer
Reporter: Ikenna Ugwu


Flutterwave, a leading payments technology company in Africa, has broadened its reach in Ghana through the integration of Pay With Bank Transfer, done in partnership with Affinity Bank.
With over 115 million bank transfer payments recorded in Ghana in 2023, this move will ensure that Flutterwave businesses in Ghana can now receive payments seamlessly and securely through a rapidly growing payment method. While Mobile Money leads as the preferred payment type for everyday transactions in Ghana, the recent growth in transactions for Pay With Bank Transfer symbolizes the expanding payment options available for Ghanaian businesses.
Flutterwave has a track record of driving innovation in the African finance ecosystem, and this new development promises versatility, thereby expanding the pool of customers available to businesses. As a preferred payment method, it also promises faster payments while providing access to a more secure process of transacting which benefits both the sender and the receiver (business).
“We are excited to extend our services to the Ghanaian market” says Olugbenga Agboola, Flutterwave Founder & CEO“At Flutterwave, we are driven by the vision of building Africa’s economy. By making payment options like Pay With Bank Transfer available for everyday use, we are expanding access to payments and enabling local businesses to thrive in the economy”
By establishing this strategic partnership, Flutterwave aims to drive the adoption of the Pay With Bank Transfer option in Ghana, using virtual accounts to allow for secure and transparent payments. This will provide enterprises and small businesses with a simpler way to receive payments and give their customers a seamless process of making payments.
Geoffrey Fiador, Manager, Country Operations and Partnerships, at Flutterwave stated: “By delivering essential payment options like Pay With Bank Transfer for businesses in Ghana, we’re providing an easy way for them to increase their revenue opportunities to grow their businesses. ”
This announcement comes at the heels of Flutterwave’s recent approval by the Bank of Ghana to provide inward remittance services. With a track record of success across Africa, Flutterwave continues to be a trusted partner for businesses in over 34 countries, providing the tools and expertise necessary for success in the dynamic African market.
Finance
Stanbic IBTC Capital leads Presco PLC’s ₦82.9 Billion Bond Issuance to drive West African market growth
Reporter: SANDRA ANI


Presco PLC (Presco or the “Company”), has achieved a significant milestone with the successful issuance of its ₦82,896,000,000 7-year 23.75% senior unsecured fixed rate Series I Bonds under its ₦150 billion bond issuance programme (the “Transaction”) with the Securities and Exchange Commission (“SEC”). Stanbic IBTC Capital Limited (“Stanbic IBTC Capital”) acted as the Lead Issuing House on the Programme.
The proceeds from the Transaction will enable the Company fund its acquisition of a 100% equity stake in Ghana Oil Palm Development Company (GOPDC), further supporting its strategic expansion objectives.
Speaking on the transaction registration, Mr Reji George, Managing Director / CEO, Presco PLC commented:
“The successful completion of our Series 1 Bond issuance solidifies Presco’s foundation for continued growth and expansion. Aligned with our strategic objectives of increasing our planted area of palm oil and, to lead Africa in the fully integrated edible oil and fats business in the nearest future, the proceeds from this issuance will be primarily directed towards the acquisition of a majority equity stake in the Ghana Oil Palm Development Company (GOPDC).
This not only enhances our operational efficiencies, It also solidifies our market presence and competitive advantage in the palm oil sector beyond Nigeria. Most importantly, this will enable us to better serve our valued customers and deliver sustainable value to our shareholders. We extend our sincere gratitude to Stanbic IBTC Capital and all our advisors for their support throughout this process.”
Also speaking on the transaction registration, Oladele Sotubo, Chief Executive, Stanbic IBTC Capital, said:
“Stanbic IBTC Capital is proud to have advised Presco PLC on the successful issuance of its ₦82.9 billion Series 1 bond. As the largest local currency corporate bond issuance in the Nigerian market in recent years, this milestone underscores our deep expertise in capital markets and our commitment to delivering innovative, high-impact financial solutions.
Beyond reinforcing Presco’s strategic growth, this transaction enhances funding diversification within the agricultural sector, driving sustainable industry expansion. We appreciate Presco PLC’s trust in Stanbic IBTC Capital and the consortium of advisors who contributed to the successful execution of this landmark deal.
Finance
Flutterwave Activates American Express Payments for its Merchants in Nigeria


Flutterwave, Africa’s leading payments technology company, has announced today that its online merchants in Nigeria can now accept American Express payments.
American Express Card Members – with consumer, business, or corporate cards – will be able to make payments directly to e-commerce businesses using Flutterwave in Nigeria.
This service will also be available to Flutterwave merchants in other countries including Tanzania, Rwanda, Ghana and Uganda in the near future.
This collaboration facilitates online transactions and offers a range of benefits for both merchants and online shoppers:
- Flutterwave merchants can attract business from a new customer base of American Express Card Members in Africa and around the world. This includes consumers with personal cards and spenders with business or corporate products. Terms and conditions apply.
- For shoppers, there is more choice when it comes to being able to select their preferred method of payment when transacting with Flutterwave merchants. This collaboration strengthens the American Express global network and increases the number of locations across Africa that can be used by American Express Card Members to purchase a range of different goods and services.
Speaking on the development, Olugbenga ‘GB’ Agboola, Founder and CEO, Flutterwave, said:“At Flutterwave, we’re always looking for ways to connect the world to Africa through payments. This is one of our initiatives to ensure that more people across the world can pay using Flutterwave in Africa. We understand the value of providing shoppers with payment methods that work for them, as well as helping businesses to expand their customer bases. This collaboration also provides more options of where to shop and what to buy to American Express card holders across the globe. By offering American Express as a method of payment, Flutterwave will make the payment process faster and simpler for American Express card holders, and improve the experience for e-commerce businesses using Flutterwave, helping them to start locally and sell globally.”
On his part, Briana Wilsey, Vice President and General Manager of Global Network Services EMEA at American Express, said: “American Express continues to expand in Africa to enable greater payment choice for businesses and consumers. Through the agreement with Flutterwave, a trusted payment provider, we are giving e-commerce merchants in Nigeria the opportunity to reach American Express Card Members around the world. The collaboration is a win-win because it also increases the number of places where our Card Members can use their Cards in Nigeria.”
Flutterwave and American Express share similar visions; to enable businesses across the world to expand their operations in Africa and other emerging markets through a platform that enables local and cross-border transactions via one Application Programming Interface (API).
Flutterwave has processed over 630M transactions in excess of USD $31B, serves global and African customers like Uber, Air Peace, Bamboo, PiggyVest, and across various industries. On the other hand, American Express is a globally integrated payments company, providing customers with access to products, insights and experiences that enrich lives and build business success.