Facts:

The respondent/plaintiff is a limited liability company incorporated under the Laws of the Federation and licensed to carry out business of insurance underwriting. The 1st appellant is government steel manufacturing and producing company. The 2nd appellant is the Minister of Power and Steel and the supervising minister in respect of government departments, companies and parastatals under the ministry including the 1st appellant. The 3rd appellant, Central Bank of Nigeria (CBN) is the banker of federal funds. 

Sometimes in 1996, the 1st appellant requested the respondent to provide fire and special perils insurance cover for the Blast Furnaces of the Steel Plant for the insurance period of January to December 1996 to cover an insured risk in the sum of 310 billion naira. The respondent complied with the request by issuing the insurance cover. The respondent confirmed to the 1st appellant that the Blast Furnace had been covered as requested and Debit Note No.00356 was forwarded for the sum of 25,000,000.00 (Twenty five million naira) representing the premium payable. The 1st appellant acknowledged receipt of the insurance cover and Debit Note on the 8th December 1996 and also acknowledged the receipt of the policies by letter dated 6th day of August 1997 but did not make payment for the Insurance Policy as it was unable to settle the account by itself.