PRINCIPLE STATEMENT

A passage in a judgment that is an obiter dictum is not binding on a lower court. What is binding is the clear and unambiguous ratio decidendi of a decision.

RATIO DECIDENDI (SOURCE)

Per Ogundare, JSC, in Nigeria-Arab Bank Limited v. Barri Engineering Nigeria Ltd. (1995) NLC-11994(SC) at pp. 41–42; Paras. E–A.
"The passage in Obaseki J.S.C. judgment in Oyeyipo v. Oyinloye (supra) being an obiter dictum is not binding on the court below. What is binding is the clear and unambiguous ratio decidendi in the decision of this court in Oviasu v. Oviasu (supra)..."
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EXPLANATION / SCOPE

Obiter dicta are not binding precedent. Only the ratio decidendi binds lower courts. The principle applies to all judicial decisions. Lower courts must distinguish between ratio and obiter. Obiter may be persuasive but not mandatory. The rule prevents the expansion of precedent beyond the actual decision. The court will examine the facts of the earlier case. The principle promotes accurate use of precedent.

CASES APPLYING THIS PRINCIPLE