The Nigerian government, state governors, the Federal Inland Revenue Service (FIRS), and other stakeholders are set to distribute a staggering N3.8 trillion Stamp Duty Fund. The allocation breakdown, as stipulated in official documents, outlines the distribution plan as follows: the federal government of Nigeria will receive a continuous 14%, state governors a substantial 73%, FIRS a consistent 4%, and other entities will receive a one-off payment of 9%.
The documents further elaborate on the distribution, stating, “The sum of N3,860,867,322,987.42 in the custody of Party B accruing from Stamp Duty collections shall be disbursed in the following manner amongst the named entities and persons: The federal government of Nigeria – 14% continuously; the Nigeria Governors’ Forum – 73% continuously; FIRS – 4% continuously, the coordinating Consultants – 5% (one-off)“The federal government Legal Team – 2% (One-off); School of Banking Honours and Others – 2% (One-off).”
This allocation plan comes in the wake of a legal battle that saw the Attorneys-General of all 36 states of Nigeria bring the then Attorney-General of the Federation and Minister of Justice, Abubakar Malami, before the Supreme Court. Their grievance was the federal government’s failure to remit the funds generated from stamp duties into state accounts.
In a notable turn of events, the governors, along with former President Muhammadu Buhari, reached an out-of-court agreement. The former president committed to paying the governors a substantial amount of unremitted funds, amounting to trillions of naira.
The governors are now poised to call upon President Bola Ahmed Tinubu to fulfill this commitment. Sources suggest that this financial matter, involving vast sums, will be a central topic in their upcoming meeting, particularly in light of ongoing discussions surrounding subsidy palliatives. The authenticity of the funds is not in question, and states are anticipated to eventually receive their rightful share of the substantial Stamp Duty Fund.