LEGAL PRINCIPLE: PRIVATE INTERNATIONAL LAW — Foreign Judgments — Currency of Payment — Claims in Foreign Currency Permissible
PRINCIPLE STATEMENT
There is no inhibition against bringing a substantive claim in foreign currency; it does not matter that a consequential order for execution is expressed in foreign currency.
RATIO DECIDENDI (SOURCE)
"It is to be noted that these provisions are concerned with the registration of a foreign judgment, while the issue before us and indeed before the Court of Appeal in this respect, is of the execution of the foreign judgment. It does not matter that the consequential order made by the Court of Appeal has been in foreign currency since there is no inhibition that a substantive claim could be brought in foreign currency."
EXPLANATION / SCOPE
There is no legal prohibition against claims or judgments in foreign currency. A consequential order for execution expressed in foreign currency is permissible. The absence of inhibition means courts can entertain claims in foreign currency and issue judgments accordingly. This facilitates international commercial transactions and enforcement of foreign judgments. The currency of the underlying obligation governs. Parties may contract in foreign currency and seek judicial remedies in that currency. Nigerian courts have jurisdiction to award damages or debts in foreign currency where the cause of action so warrants. The principle applies to both substantive claims and enforcement proceedings. The court may convert to local currency for execution purposes if necessary.