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Governors of 36 states in the country have filed sued the Federal Government over its failure to remit funds generated from stamp duties into states’ account.
The latest move is coming few days after some states locked horns with the central government over collection of Value Added Tax(VAT) in the government.
The states initiated the legal fireworks through their Attorneys-General who dragged Attorney-General of the Federation (AGF), Abubakar Malami, to the supreme court over the infraction.
The states maintained that they are the sole authority to collect stamp duties and not the Federal Government.
In a suit marked: SC/CV/690/2021 filed before the Supreme Court,the 36 states are praying for an order compelling the Federal Government to account for funds collected by way of stamp duties on individual persons’ transactions in states from 2015.
The states want the apex court to order the central government to refund N176,067,400,000, being “the ascertained and admitted collected stamp duties on individual persons’ transactions within the respective states for the period of 2015-2020” in addition to what would be ascertained later.
The states also want the Supreme Court to restrain the Federal Government or its agents from appointing anyone to collect stamp duties on individual persons’ transactions within the respective states.
The states said that by virtue of the mandatory provisions of Section 4(2) of the Stamp Duties Act, they (the states) are the sole authorities empowered to administer and collect stamp duties on all transactions involving individuals/persons within their respective states.
They are praying for : a declaration that the plaintiffs 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 in 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.
A declaration that the plaintiffs are entitled to 85 per cent of all stamp duties collected on electronic money transfer levy, 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 transferor deposit is made in the plaintiffs’ respective states.
An order of injunction directing the defendant 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.