ABOKI JCA (Delivering the Lead Judgment): This appeal is against the decision of the Federal High Court Abuja delivered on 19 July 2007 by A.I. Chikere J.
The facts of the case are briefly stated as follows: Sometime in 1997, ABC Merchant Bank Limited (Liquidated) was appointed a participating bank in the disbursement of the National Economic Reconstruction Fund (NERFUND) loans and it provided the loan of N35m (thirty-five million naira) to the 1st appellant. When its operational licence was revoked by the Central Bank of Nigeria (CBN) on 16 January 1998, the Nigeria Deposit Insurance Corporation (NDIC) was appointed the liquidator of the bank.
By an agreement later executed between ABC Merchant Bank through NDIC, the bank handed over everything concerning the transaction with the defendants/appellants to the plaintiff who originally provided the funds. Thus, the plaintiff started acting directly with the defendants in the loan transaction. The 1st defendant was the principal debtor, …