E-Financial
Court Declares Banks’ Stamp Duty Charges Illegal
A Federal High Court in Asaba has declared as unlawful, illegal, null and void the deduction of the sum of N50 as Stamp Duty charges from the accounts of commercial bank customers in the country.
The court in addition made an order restraining the Central Bank of Nigeria (CBN) and banks from making further deductions unless authorised by law.
Justice Nnamdi Dimgba made the declaration in a judgment he delivered in a suit filed by Mr. Rupert Irikefe, a bank customer, challenging the continued deduction of Stamp Duty charges from his current bank account domiciled with Zenith Bank in Asaba, Delta State.
Irikefe had in 2019 instituted a legal action against the CBN, Zenith Bank PLC and the Attorney General of the Federation as 1st, 2nd and 3rd defendants respectively over the continued deduction of Stamp Duty charges from his current account in Zenith, despite a subsisting court order preventing banks in the country from making such charges.
In the suit he filed and argued by himself, Irikefe prayed the court to hold the CBN and Zenith Bank liable for acting in flagrant disobedience of a valid could order.
According to the plaintiff upon noticing several deductions of N50 and N100 from his bank account with the 2nd defendant being Stamp Duty charges, he had paid two visits to the bank branch in Asaba on September 14, 2018 and October 11, 2018 and told them their action contravened the judgment of the competent courts in the country including the Court of Appeal.
He lamented that rather than refund the monies so far collected the 2nd defendant continued to make further deductions on claims that they were following lawful directives of the first defendant.
Among the reliefs plaintiff sought before the court are whether by the decision of the Court of Appeal in appeal number : CA/L/437A/2014 between Standard Chartered Bank Nigeria limited versus Kasmil International Services Limited and 22 others delivered on April 21, 2016 and suit number: FHC/L/CS/126/2016 between Retail Supermarket Nigeria Limited versus Citibank Nigeria Limited and the CBN delivered on March 13, 2017 which found that “there was no express provision in the Stamp Duty Act or any law authorising the deduction or imposing any obligation to deduct or remit N50 as Stamp Duty on tellers, deposits or electronic transfers of monies from N1000 upwards and accordingly nullified same, the conduct of the 1st defendant and 2nd defendant by continuing to impose, direct the imposition, receive and or charge, deduct or remit the said sum of N50 as Stamp Duty…. from the account of the plaintiff is not wrong in law, dismissive and contemptuous of the law, orders of superior courts of competent jurisdiction, condemnable, null and void and of no effect.
He further asked the court to hold that the conduct of the first and second defendants to continue to make deduction in the name of Stamp Duty despite the subsistence and or awareness or the court of Appeal judgment is arbitrary, unlawful, illegal etc.
He accordingly prayed the court to make “ an order setting aside the imposition, deduction and or remittance or Stamp Duty charges.
“An order directing or mandating the first and second defendants to refund to the plaintiff the total cumulative sum illegally deducted from the commencement of deductions on January 31, 2016 to the date of filing the suit”.
Plaintiff also prayed for the sum of N50 million as general damages and another N50 million as exemplary damages.
“An order of injunction restraining the defendants from further deducting the sum of N50 Stamp Duty on teller’s deposits and or electronic transfers on Money transaction… unless authorised by law”.
Delivering judgment, Justice Dimgba who noted that the first defendant “acted in bad faith”, said, “I have never ceased to wonder, the practice that is very much exacerbated in current climes, where agencies of the government treat decisions of Court of law with disdain and to carry on as if those decisions were not in existence”.
The judge also noted that the second defendant willingly disobey the judgment of court when it acted recklessly and at its own peril to continue to deduct Stamp Duty charges from the plaintiff’s account in the face of clear and binding judicial decisions arising from judicial proceedings which the second defendant itself participated.
“All things considered, it is trite that a judgment not appealed against or set aside by a higher court is valid, subsisting and binding on all parties”.
While upholding the argument of the plaintiff, Justice Dimgba further held that the defendants did not place before the court any judgment or order of superior courts overriding the ones plaintiff anchored his case on.
He further held that the defendants failed to present to the court any amendment to the Stamp Duty Act empowering them to continue to make the deductions.
“In the absence of the above, it is irresistible to say that the suit has merit and should succeed.
“I hereby resolve the questions posed in the Originating Summons in favour of plaintiff.
“I enter judgment in favour of plaintiff on the following terms. Reliefs 1,2,3,4,5 and 8 are hereby granted.
“Relief 6 is refused. 7 is granted but limited to the sum of N2 million.
“Cost of N500,000 in favour of plaintiff jointly and severally”.
The judge added that, “This relief is granted to set an example that it is reprehensible conduct to willfully disobey decisions of competent court of law”.
PalmPay, a leading neobank and fintech platform focused on emerging markets, has been recognised in CNBC and Statista’s 2025 Top 300 Fintech Companies in the World list. This marks the second year in a row that PalmPay has earned a place among the world’s most innovative and impactful financial technology firms.
The selection is based on a rigorous evaluation of thousands of companies globally, assessing growth, innovation, market penetration, and impact. This year’s list includes a mix of global leaders – including Revolut, Nubank and Ant Group – alongside rising stars from high-growth markets, underscoring the growing influence of emerging-market fintechs like PalmPay.
PalmPay’s inclusion reflects its continued momentum as one of Africa’s leading fintech platforms. With over 35 million registered users and up to 15 million transactions processed daily, the company offers a comprehensive suite of digital financial services tailored to the needs of underserved communities.
In its main market, Nigeria, PalmPay operates as a full-service neobank, offering consumer financial services such as transfers, bill payments, credit, savings, and insurance – all accessible through its user-friendly app and supported by a nationwide network of over 1 million agents and merchant partners. The company also provides POS and API-driven B2B solutions tailored to the needs of merchants and enterprise clients.
“To be recognised as one of the world’s top fintech companies by CNBC and Statista is a powerful affirmation of our mission to build a more inclusive financial system,” said Sofia Zab, Founding Chief Marketing Officer at PalmPay.
“Through cutting-edge technology, deep local distribution, and a customer-first mindset, we’ve built Nigeria’s leading neobank. As we scale PalmPay to more emerging markets, including Tanzania and Bangladesh, our focus remains on closing financial access gaps for everyday consumers and businesses, while expanding the partner ecosystem that fuels our reach and impact.”
As part of its broader expansion strategy, PalmPay recently launched in Tanzania and Bangladesh through a smartphone device financing model that serves as an entry point to digital financial services.
“PalmPay is building a neobanking platform tailored to the realities of emerging markets,” said Jiapei Yan, Group Chief Commercial Officer at PalmPay. “We are creating the infrastructure for a connected digital economy – where people and businesses can thrive through reliable, inclusive financial tools.
This recognition from CNBC and Statista affirms our progress and also the scale of the opportunity ahead. As we expand across more emerging markets, we are committed to creating lasting value for our users, partners, and the communities we serve.”
PalmPay’s inclusion follows another major recognition earlier this year: the company ranked #2 overall and #1 in the financial services sector on the Financial Times – Africa’s Fastest-Growing Companies 2025 list. The ranking, based on revenue growth between 2020 and 2023, highlighted PalmPay’s rapid scale and market traction across Africa.
PalmPay currently operates in Nigeria, Ghana, Tanzania, and Bangladesh, and is expanding its presence across Africa and Asia through device financing, digital banking, and B2B payment services. Backed by a robust neobanking platform and a partnership-led approach, the company is committed to shaping the next chapter of inclusive financial growth.
Fidelity Bank Plc has reaffirmed its commitment to quality education and youth empowerment with the renovation of a classroom block and donation of textbooks to Aso Pada Government Secondary School in Karu LGA, Nasarawa State.
L-R: The Team Lead, CSR, Fidelity Bank Plc, Victoria Abuka; Vice Principal, Government Secondary School, Aso Pada, Maraba, Mr. Abdullahi Idris; Project Co-ordinator, Elite Bankers 2025 Inductee Class, Fidelity Bank Plc, Onyinyechi Ihesiaba; Vice Principal -Academics, Government Secondary School, Aso Pada, Maraba, Mr. Ela Isa; during the commissioning of a renovated block of classrooms and the distribution of Back-to-School Materials at Government Secondary School Aso Pada, Maraba, Nassarawa State recently.
The project was executed through the Fidelity Helping Hands Program (FHHP), a corporate social responsibility initiative that enables staff to identify community needs, raise funds, and receive matched support from the bank.
Speaking at the handover ceremony, Dr. Meksley Nwagboh, Divisional Head, Brand and Communications, said the school was chosen due to its impact on the local community and its lack of renovation in over 15 years.
Vice Principal Abdullahi Idris praised the bank’s gesture, calling it “an investment in the future of our nation,” and expressed hope for a lasting partnership.
The initiative follows Fidelity Bank’s recent donation of 1,000 solar-powered schoolbags to pupils across Ogun State, aimed at improving study conditions in areas with limited electricity.
Fidelity Bank serves over 9.1 million customers and has received multiple awards for innovation and SME support, including the 2024 Excellence in Digital Transformation Award and Best Bank for SMEs in Nigeria by Euromoney.
Eight leading Nigerian banks collectively set aside N156 billion as impairment charges on their credit and financial assets, marking a significant financial impact amidst a challenging economic environment, in the opening quarter of 2025.
Known commonly as loan losses or credit impairments, these charges highlight the banks’ defensive measures against risks arising from inflation, naira depreciation, and tightened liquidity affecting consumers and businesses alike.
The level of impairment varied considerably across institutions, reflecting divergent risk appetites and credit management practices.
Zenith Bank led with the highest provision of N49.38 billion, an 11.8 percent reduction from the previous year’s N55.97 billion.
This decline may suggest enhanced asset quality or more rigorous loan recovery tactics.
Broken down, loans and advances contributed N35.95 billion to impairments, while investment securities and treasury bills added N7.1 billion and N2.16 billion respectively.
Despite heavy provisioning, Zenith recorded a notable 20.7 percent increase in post-tax profit, soaring from N258.34 billion to N311.83 billion.
Similar trends emerged at First HoldCo, which posted N37.25 billion in impairment (down 11.2 percent), driven mainly by loans and advances provisions of N41.23 billion.
Offsetting this were write-offs and reversals that mitigated losses.
First HoldCo’s profit, however, fell to N171.10 billion from N208.11 billion.
Access Holdings and Guaranty Trust Holding Company also demonstrated reduced impairment charges, indicating stronger credit monitoring.
Access’s net provision dropped 4.5 percent to N21.77 billion, while Guaranty Trust’s impairment stabilized near last year’s N13.42 billion figure.
Yet, Guaranty Trust’s profit plunged 43.6 percent to N258.03 billion, a striking contrast to other banks’ profit growth.
On the other hand, United Bank for Africa (UBA) faced a staggering 332.2 percent surge in impairment, from N3.28 billion to N14.18 billion—pointing to amplified credit risks possibly driven by external economic pressures.
Nonetheless, UBA recorded a 33.1 percent profit uptick to N189.84 billion.
FCMB’s impairment charge fell notably by nearly 60 percent to N9.52 billion, aided by significant recoveries of previously written-off loans, boosting its profit to N32.23 billion.
Meanwhile, Fidelity Bank and Wema Bank posted sharp rises in impairment—285.8 percent and 64.7 percent increases respectively—reflecting heightened write-downs that underscore growing risk exposure amidst portfolio expansions.
Overall, while the cumulative impairment charge diminished by 5.2 percent compared to Q1 2024, individual bank results were mixed, embodying the varied strategies and external pressures in Nigeria’s banking sector.
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