JURISDICTION — Foreign currency judgments — Nigerian courts may give judgment in foreign currency
Ratio Decidendi
Per Chukwuma-Eneh, JSC, in Salzgitter Stahl GmbH v. Tunji Dosumu Industries Limited (2010) NLC-123-30-2001(SC) at p. 24, paras. D–E; and p. 25, para. E:
"It is no longer in doubt and this is settled that parties can make an agreement or enter into a contract, to pay in foreign currency and a Nigerian court, can in its discretion, award same accordingly... Nothing in Sections 7(a) and 28(1) of the Exchange Control Act 1962 (not having been repealed at the time) has prohibited expressing judgment in foreign currency... our courts should follow the Miliangos case for its compelling justice in such matters."
Explanation / Scope
This principle establishes that Nigerian courts may give judgment in foreign currency where parties have agreed to payment in foreign currency. The Exchange Control Act does not prohibit such judgments. The principle applies in contract and debt claims involving foreign currency. It ensures that courts can award foreign currency judgments. The principle reflects the adoption of the Miliangos principle. It prevents injustice from currency fluctuations. The court has discretion to award foreign currency. The principle provides guidance on foreign currency judgments.