Afribank Nigeria Ltd V. Moslad Enterprises Ltd & Anor. (2007)

LawGlobal-Hub Lead Judgment Report

KUMAI BAYANG AKAAHS, J.C.A.

The 2nd Defendant/Respondent who is the Managing Director of the 1st defendant/Respondent and sole signatory to the 1st defendant/respondent’s account at the Ilesha Branch of Afribank Nigeria Limited (formerly called International Bank for West Africa Limited) applied for overdraft and loan facilities from the Bank. The facilities which were granted at an interest rate of 9% per annum were guaranteed by the 2nd defendant in a letter dated 9th December, 1985 which was received in evidence as Exhibit “P1”. The letter reads as follows:-

“INTERNATIONAL BANK FOR

WEST AFRICA LIMITED

ILESHA BRANCH

B, 43 OKE ESA ST.

ILESHA, OYO STATE

9TH December, 1985

Our Ref: IL/TTO/OA/1349/85

The Managing Director,

Moslad Enterprises Ltd,

P.O. Box 1506

Ilesha.

Dear Sir,