OMEGA BANK PLC. V O.B.C

Issue:

In September 1991, the respondent applied to the appellant for N5 million NEXIM revolving loan. The loan was to enable the respondent export tons of cocoa to her foreign customer, Minstrel Limited of England. The appellant succeeded in procuring a NEXIM loan of N6 million. The appellant was intermediary and a primary obligor to NEXIM. It was a condition that in the event of default by the respondent, the appellant was obliged to refund the loan to NEXIM. Following some disagreement, the respondent sued the appellant for breach of contract. He claimed three reliefs involving different amounts of Naira and sterling. The learned trial Judge heard evidence and gave judgment in favour of the respondent. The appellant's appeal to the Court of Appeal was dismissed. The Court of Appeal affirmed the decision of the trial Judge. The court held that the parties entered into a NEXIM loan/ agreement, which was breached by the appellant. The court also affirmed the award of damages for breach of contract, detinue/wrongful detention of respondent's title deeds and post judgment interest of 7½% per annum made by the trial Judge. Aggrieved by the judgment, the appellant has come to the Supreme Court.