Facts:

The 1st respondent granted certain credit facilities to the 1st appellant in the cumulative sum of N7,450,000.00 (Seven Million, Four Hundred and Fifty Thousand Naira), the purpose of which was to finance the supply of ten tankers of Automotive Gas Oil (AGO) to the 2nd respondent, by the 1st appellant. One of the conditions, to draw down on the loan facility, was the domiciliation of payments for the supplies into the 1st appellant’s account with the 1st respondent. A letter of domiciliation was also executed in that regard where the 2nd respondent promised the 1st respondent that payment for the AGO, would be issued in the name of the 1st appellant account with the 1st respondent.
While the facility subsisted, the 2nd respondent failed to honour the terms of the aforementioned letter of domiciliation, and the appellants also failed to make good their contractual obligation to repay the loan to the 1st respondent in spite of several demands for same. Aggrieved, the 1st respondent instituted an action against the appellants and the 2nd respondent at the lower court.
In response, the 2nd respondent filed its Statement of Defence and also a third party notice against the appellants. In its final judgment, the lower court granted the 1st respondent’s claims in part against the appellants and the 2nd respondent as well as the 2nd respondent’s third party notice against the appellants.
Dissatisfied with the decision of the lower court, the appellants appealed to the Court of Appeal.