Facts:

The 1st respondent granted certain credit facilities to the 2nd respondent 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 appellant, by the 2nd respondent. One of the conditions, to draw down on the loan facility, was the domiciliation of payments for the supplies into the 2nd respondent’s account with the 1st respondent.
A letter of domiciliation was also executed in that regard where the appellant promised the 1st respondent that payment for the AGO, would be issued in the name of the 2nd respondent’s account with the 1st respondent. While the facility subsisted, the appellant failed to honour the terms of the aforementioned letter of domiciliation, and the 2nd & 3rd respondents 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 appellant and the 2nd & 3rd respondents at the lower court. In response, the appellant filed its Statement of Defence and also a third party notice against the 2nd & 3rd respondents.
In its final judgment, the lower court granted 1st respondent’s claims in part against the appellant and the 2nd & 3rd respondents. Dissatisfied with the decision of the lower court, the appellant appealed to the Court of Appeal.