The plaintiff is and was at all material times a business–man and a citizen of the Republic of Benin living in the town of Port Novo in that Republic. He has and had Nigerian customers and business associates going to that country to purchase goods from him. During the period 1980 – 1981 some of his Nigerian business associates approached him in Benin Republic and Europe to help them settle the bills of children and wards in various educational institutions in Europe and America by proving funds abroad to these children through his country’s local currency the CFA Francs, freely convertible currency in the world market. He said the request was made in order to obviate the hardship and inconveniences caused to many Nigerian students abroad due to long delay in obtaining approval of the Central Bank of Nigeria (hereinafter called the CBN) For foreign Exchange applications, thus making timely remittance of funds difficult. He first granted seven requests of his Nigerian customers by providing the needed funds for their children and wards in England in CFA Francs from his own account. When the Nigerians eventually obtained Foreign Exchange approvals from the CBN, Bank drafts covering the amount in Pound Sterling were issued and handed over to them by the defendant bank at its headquarters here in Nigeria to be drawn on its branch in London. These drafts were in turn passed to the plaintiff in settlement and reimbursement of the sums earlier advanced by him. Thereafter the plaintiff paid them in through his own bank in Benin Republic to the defendant’s London branch which honoured the drafts and accordingly had the plaintiff repaid.

Following the success of the first transaction, the appellant granted further and similar requests to forty-five Nigerian business associates under the same arrangement. He provided funds abroad to their children and wards through his country’s local currency – the CFA Franc. When the Nigerians eventually obtained approvals from the CBN, the drafts issued by the respondent bank to the Nigerians in relation to the school fees and maintenance allowances for their children, were passed to the appellant in settlement and reimbursement of the sums earlier advanced by him. The appellant receive altogether forty-five drafts from the Nigerians, the total value of which was £212,310.00 (two hundred and twelve thousand, three hundred and ten pounds sterling). The drafts were admitted in evidence as Exhibits A to A44.

The appellant paid in all the forty-five drafts through his bankers in Benin Republic to the respondent’s London branch. However, the respondent’s London branch office dishonoured the drafts on the first and second presentations. The appellant then made enquiries from the Manager of the respondent’s London branch though his solicitor and got an explanation that as the total amount covered by the drafts was very large, the Manager wanted confirmation from the respondent’s Head Office in Lagos that the drafts were actually issued by it and because additionally the drafts were each marked thus, “Endorsement Requires drawer’s confirmation.”

Accordingly the drafts were sent by the London Manager to the Lagos Head Office for confirmation.

After fruitless efforts to get the defendant bank to honour the drafts the plaintiff sued the defendant bank in the Lagos High Court. The matter went to trial and in a reserved judgment, the High Court granted all the reliefs claimed by the appellant.

Respondent dissatisfied, appealed to the Court of Appeal which allowed the appeal. The appellant now dissatisfied with the decision of the Court of Appeal, appealed to the Supreme Court.