MONICA BOLNA'AN DONGBAN MENSEM, J.C.A. JP+ (Delivering the Leading Judgment): The summaries of facts presented by the Respondent as modified in this judgment are as follows:
The Federal Government of Nigeria had set up the National Economic Reconstruction Fund (NERFUND) by statute whose object was to provide soft loans to industrialists for the purposes of promoting industrialization in Nigeria. This objective is stated in section 1 (1) (b) of the Decree NO. 2 of 1989 (now Act) as follows:-
"b. Provide medium to long-term loans to participating commercial and merchant banks for on-lending to small and medium-scale enterprises for the promotion and acceleration of productive activities in such enterprises."
The said Decree shall hereinafter be referred to as the Act while NERFUND will be referred to sometimes simply as the FUND.
The Act made provisions which spelt out the duties of the obligor bank towards the borrower. Section 5(1) (a) and 5(2) of the Act set out the functions and obl…