Facts:

The appellant is the apex bank and statutory regulator of the foreign exchange market in Nigeria while the respondent is a Nigerian company engaged in the business of importation of petroleum products.

The respondent took loans from three commercial banks in Nigeria and applied to the appellant to purchase US Dollars (USD). The respondent opened Forms M; secured the appellant’s approval for the letters of credit (LCs); sent the LCs to its foreign suppliers of petroleum products who shipped the product only upon the strength of the Forms M and LCs; and concluded the transactions for the supply of the products at the rate of N179 to USD1. However, on 15th June 2016, the appellant issued a circular by which it announced a new policy that caused the exchange rate of Naira to USD to be N280 to USD1 and the policy would apply to old matured transactions instead of N197 to USD1 that it had earlier approved for the respondent.

Aggrieved with the appellant’s new policy, the respondent filed an action against the appellant seeking certain declaratory reliefs. In response, the appellant entered conditional appearance and filed a statement of defence denying the respondent’s claims. Additionally, the appellant filed a motion on notice for an order striking out the respondent’s suit on jurisdictional grounds. The respondent opposed the application by filing a counter affidavit. In a considered ruling the trial Court dismissed the appellant’s objection.

Dissatisfied with the ruling of the trial court, the appellant appealed to the Court of Appeal.