Facts:

Sometime between October, 1981 and May 1982, the appellant and the respondent entered into an agreement for the purchase of foreign exchange by the appellant from the said respondent (as its banker). The total sum to be purchased was DFL 464,270.65 and was meant for remittance to the appellant’s technical partners by name WAVIN OVERSEAS BV of Holland 1 – as payment for goods supplied to the said appellant by the foreign company. After several years of this agreement and the transaction the respondent bank by a letter dated 13/12/89, informed the appellant that the Central bank of Nigeria (CBN) had already given a cover for the transaction and all that remained was the allocation of the foreign currency purchased by their (i.e. respondents’) International Banking Division. However by another letter dated 14/2/90, the respondent informed the appellant that their International Banking Division was unable to allocate the relevant foreign currency purchased by the said appellant, which was consequently advised or asked to give a disposal instruction of the local equivalent