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Taking Preliminary Objection With Main Suit Amounts To Overruling Before Argument

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IN SUPREME COURT OF NIGERIA

On Friday, the 24th day of June, 2011

Suit No. SC3/2011

BEFROE THEIR LORDSHIIPS

DAHIRU MUSDAPHER … Justice of the Supreme Court

CHRISTOPHER MITCHELL CHUKWUMA ENEH … Justice of the Supreme Court

OLUFUNLOLA OYELOLA  ADEKEYE … Justice of the Supreme Court

SULEIMAN GALADIMA … Justice of the Supreme Court

BODE RHODES VIVOUR … Justice of the Supreme Court

BETWEEN

1.         HON. ZAKAWANU I. GARUBA

2.         HON. LEVIS A. AIGBOGUN

3.         HON. FRANCIS O. OKIYE

4.         HON. BLESSING AGBEBAKU

5.         HON. CHRISTOPHR I. ADESOTU

6.         HON. SUNDAY  EBOSELE  EREEGHAN

7.         HON. EMAMMA  OKODUWA

HON. ZAKAWAN I. GARUBA & ORS V. HON. EHI BRIGHT

OMOKHODION & ORS CITATION (2011) LPELR.SC 3/2011 \

The purported amendment of the record of appeal/proceeding as claimed by the appellants has no sanction of the court either by granting or refusing the amendment and so it is a non­starter. Meaning that the mere filing of an affidavit challenging the instant record/ proceeding of 26/4/2010 without more cannot by that fact alone (ie. without more) effectively and effectually amend the record of appeal. And I so hold.

What are the consequences for so holding as per the foregoing? They are far reaching. I have already set out the grounds of appeal and the four issues particularly issues 1 and 2 raised therefrom for determination in this matter as above. The appellants have made no bones as to the common basis of the said four issues and even the 10 grounds of appeal in this matter. The four issues so also grounds 3, 4, 6, 8, 9 and 10 of the grounds of appeal by the nature of the questions they have raised respectively have to stand or fall based on whether or not the record of appeal/proceeding of 26/4/2010 has been duly amended by the affidavit filed by the appellants challenging the record. These is­sues and the grounds as argued by the appellants have been premised on the unfounded basis that the record/proceeding of 26/4/2010 has been so amended hence the complaint as per issue one that the lower court has subtracted or read out of the record, “what is there” and on issue two of not having taken judicial notice of the judgments of this court cited in ground one. That the appellants have laboured under a misconception and misapprehension as to the amendment of the record of appeal/proceeding of 26/4/2010 is borne out from their submission as per paragraph 4.05 page 13 of their brief and I quote:

“The lower court… was in grave error when it stated that no case was cited or referred to in the record of appeal. The court did not advert its mind to the affidavit challenging the record of court dated 26/4/2010 on the omission of the cited authorities … we submit that the conclusion of the Court of Appeal … that the cases were not cited or referred to in the proceedings of the trial Court for 26/4/2010 is not borne out of the record of appeal at pages 250, 251, 252, 253, 257,258,259260 -263A of the Record of Appeal           The conclusion of the Court of Appeal that no case was cited or referred to is not borne out of the record … “

Their misconception with respect is pro­found. It is settled law that courts, the parties and their counsel are bound by the record of appeal. And so no court has the jurisdiction to go outside the record to draw conclusions which are not supported by the record. I find that the four issues and grounds 3, 4, 6, 8, 9 and 10 also have been raised on the basis that the said record of appeal/proceeding of 26/4/2010 has been fuly amended by the affidavit challenging the record of appeal to include the proceedings of 26/4/2010. This is not so as per my findings above.

In the result having pulled the rug as it were from underneath the appellants submissions as to the competency with regard to the four isues raised for resolution here and the said rounds above mentioned they become baseless and utterly without foundation and therefore incompetent and should be struck out. It is trite that you cannot stand something on nothing and expect it to stand and in the same way issues for determination must spring from grounds of appeal which in turn must have arisen from the court’s decision. Finally, it has been argued in this matter that this appeal has been struck out by the lower court for failing to seek and obtain have of court before filing the appeal as prescribed by Section 242 of the 1999 Constitution as amended having raised grounds of fixed law and facts therein. It is also common ground that the trial Court’s directive  deal first with the preliminary objections mounts to an interlocutory order based on the exercise of its discretion. It is trite law that an appeal against an interlocutory decision other than on grounds of law requires have of court. The provisions of Sections 241(l) and 242 (supra) have clearly set out when appeals will be presented as of right or with leave respectively of the Federal High Court or State High Court or the Court of Appeal as the case may be. And so it is settled law that right to appeal is statutory. Whether the instant exercise by the appellants of their right to appeal is properly founded in law has been challenged by the respondents based on the nature of the instant 3 grounds raised against the trial Court’s decision in this matter. This has formed the basis of grounds 1, 2 and 5 to this court.

The question to be resolved in this respect is whether or not the 3 (three) grounds of appeal raised before the lower court require leave of court to be competent having been raised against the trial Court’s decision in exercise of its discretionary power. This depends on whether or not the grounds raised are questions of law. The point therefore must be made that the distinction between a ground of law and a ground of fact or mixed law and facts though very thin, is fundamental to resolving the instant question, which is difficult and blurred to define and apply. See: Ugboaja v. Akinloye Somemimo (2008) 16 NWLR (pt.1113) 278 at 293-294. See Nwadike v. Ibekwe (1987) 4 NWLR (pt.67) 718. To determine whether a ground of appeal is one of law or fact requires examining the main ground in the context of its particulars so as to determine the nature of the question the ground has raised or complaining about. The appropriate approach to determming the issue put simply in the circumstances is whether the 3 grounds irrespective of how couched have challenged ie. questioned the discretionary exercise of the power of the trial Court to hear the preliminary objections of the 3 sets of defendants/respondents first before dealing with substantive matter on the merits or to deal with the originating summons and the preliminary objections together. See Nwaaike v. Ibekwe (1987) 4 NWLR (pt.67) 718, Obi v. Owolabi (1990) 5 NWLR (pt.153) 702, Olaosebikan v. Williams (1996) 5 NWLR (pt.449) 437 at 442. The trial Court opted to near the preliminary objections first in exercise of its discretionary power. It is beyond argument that the appellants have questioned the trial Court’s discretion in making the interlocutory order in other words, thus questioning the evaluation oj the facts. See State v. Bassey (1994) 9 NWLF (Pt.367) 130 at 13D. I find that by examining the said 3 grounds of appeal will lead to further examining of the facts and circum stances on which the trial Court’s exercis! of its discretion in the matter of the direc tive it has given is premised and I have no doubt that the 3 grounds are a product of exercise of discretion and so a composite of  mixed law and facts.

Again, even then reading the main grounds of the 3 grounds of appeal along side their particulars shows that they are complaining of the trial Court’s exercise c its discretionary power. And I so find. This question has been settled by the pronouncement of this court in F.B.N. Ltd. v. Abraham (2008) 18 NWLR (PU1l8) 172 at 189A-B wherein it held that and I quote:

“A ground of appeal questioning the exercise of discretion by a lower court is not a ground of law but a ground of mixed law and facts.”

From my reasoning above I am in entire agreement with the finding in the above cited case. So that the 3 grounds of appeal in this matter having raised a question of mixed law and facts require leave of court, the appellants have filed this appeal without first having obtained leave of court and they will take the consequences. It is trite that without leave of court having been first sought and obtained before filing the appeal, the appeal will be incompetent and liable to be struck out pursauant to Section

233(3) of the 1999 Constitution and I so hold. Having so concluded I see no justification examining any other issues raised here as this finding goes to the root of the appeal vis-à-vis the notice of appeal not having any competent ground on which to sustain it and the appeal therefore being incompetent it is here by struck out.

For all the reasons I have given above, I find no merit in this appeal and it stands dismissed in its entirety. I hereby affirm the decision of the local court. I make no order as to costs.

Cross Appeal

The respondents/cross-appellants in the cross appeal are the 12th -14th respondents in the main appeal. They have filed a Notice of Appeal dated 3/2/2011 and have filed their brief of argument in the cross appeal and from it has distilled a sole issue for determination, viz:

“ … whether the Ruling by way of a directive of the learned trial judge on the 26th April 2010 amounted to a decision for which the appellants can appeal.”

Arguing the sole issue raised in this matter they have submitted that the directive of 26/4/2010 as per the interlocutory order made by the trial Court on 26/4/2010 has done no more than to have considered the priority of the pending applications before it and so not a decision within the meaning as contemplated in Sections 241, 242, 243 and 318 of the 1999 Constitution as amended. As a guide to the court to resolving this matter they have cited United Ventures Ltd. V. F.C.M.B. Ltd. (1998) 4 NWLR (Pt.547) 596 at 555 paragraphs B-F and 564 per Musdapher JCA (as he then was), Okeke v. Uzo Chukwuma Motors (2001) 3 NWLR (Pt.700) 338 at 345 – 355 C/ A, 11 NWLR (Pt.724) 341 at 348 paragraphs G-H, Chidozie v. Mosowan (1999) 1 NWLR (Pt.556) at 328 paragraphs C-D, F-H. The court is urged to resolve this issue in favour of the respondents/ cross appellants.

To be Continued

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Eazipay  Offers Zero-Interest Loans To  150,000 SMEs, Employees

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With a mission to ignite growth, encourage business continuity and help businesses and employees thrive, Eazipay is gearing up to propel the dreams of 150,000 SMEs and employees to new heights through her relief fund.
Gone are the days of financial constraints and stifled dreams. With Eazipay’s support, SMEs and employees alike can bid farewell to limitations and embrace a world of endless possibilities.
Whether it’s start up,  business expansion or personal development, Eazipay is here to make dreams come true.
The mind-blowing initiative, which  kicked off this month, would end in December, and will also offer a range of perks and benefits designed to put a smile on the faces of SMEs and employees alike.
From exclusive discounts to various advisory services and beyond, Eazipay is committed to spreading happiness and creating lasting impact in people’s lives and to the growth of businesses.
The technology company which offers products and services that range from payroll management to IT/Device management and assessments, “Eazipay isn’t just providing financial support but also unleashing a wave of growth and prosperity for SMEs and employees across the nation.
“Interested businesses and individuals can take part in this initiative directly from the Eazipay website: www.myeazipay.com”.

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SMEs Critical For Sustainable Dev – Commissioner

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The Commissioner of Finance, Lagos State, Abayomi Oluyomi, has described Small and medium Enterprises (SMEs) as a critical engine for sustainable development in any economy.
He said this recently at the 10th anniversary of the Alert Group Microfinance Bank and the opening of their new head office in Lagos.
According to the National Bureau of Statistics, SMEs accounted for about 50 per cent of Nigeria’s gross.
He commended the positive impact of the Alert MFB as it empowers SMEs in the State.
“Alert MFB in the past 10 years has been at the forefront of empowering SMEs in Lagos State, disbursing over N30bn in loans to over 30,000 individuals having small to medium businesses over that period, which is quite remarkable”, he said.
Speaking, the Group Managing Director of Alert Group, Dr Kazeem Olanrewaju, revealed that the financial institution commenced business in 2013 as a microfinance bank.
“We started this journey in 2013 and it has been expanding. Today, they have about 10 branches across Lagos. They have supported well over 30,000 clients and have disbursed over N30bn.
“The company has been profitable since the second year. Looking at the market and the available opportunity, the Alert MFB board decided to come together to establish a Microfinance Institute (MFI), which is the Auto Bucks Lenders”, Dr. Olanrewaju said.
The GMD further stated that the company was focused more on supporting businesses and small and medium enterprises.
“The loan to support business represents over 98 per cent. The consumer loans you will see are the ones given to entrepreneurs. So, the area of focus of Alert MFB and Auto Bucks Lenders is to support businesses across the country.
“With the establishment of Auto Bucks Lenders, we have the opportunity to also do business outside Lagos. So, presently, we have offices in Ogun State and Oyo State. We intend to go to every part of Nigeria to support what we are doing”, he declared.

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Retailers Explain Price Drop In  Cement Cost

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The cement market, in the last couple of weeks, has seen a significant turnaround with prices tumbling from between N10,000 and N15,000 per 50kg bag to between N7,000 and N8,000.
The sudden rise in the prices of cement and other major building materials in February this year upsets  the construction industry, especially in real estate, where many developers were forced to abandon building sites.
A recent market survey conducted by The Tide’s source in different locations across the country confirmed a price drop, ranging between N7,000 and N7,500 per bag, though BUA cement is selling for N7,500 to N7,800 per 50kg bag, depending on location.
Both entrepreneurs and major distributors who were interviewed,  explained that the price drop is due to low demand and government’s intervention.
At the peak of the price hike, the Federal Government called a meeting with major producers where it was agreed that a bag of cement should be between for N7,000 to N8,000, depending on location.
But the producers did not comply with this agreement immediately, followin which “Nigerians stopped demanding for cement; many project sites were abandoned as developers sat back and waited for the prices to come down.
“So, what has happened is an inter-play of demand and supply with price responding, which is Economics at work”, Collins Okpala, a cement dealer, told the source in Abuja.
In the Nyanya area of the Federal Capital Territory, a 50-kg bag of Dangote cement now sells for between N7,000 and N7,500, while BUA cement sells for between N8,500 and N9,500, down from between N11,000 and N12,000 respectively.
In Lagos, the product has seen significant price drop too. In Ojo area of the state, Sebastin Ovie, a dealer, told our reporter that what has happened is a crash from the January price, attributing the crash to low demand and stronger naira.
“The current price of the product is between N7,000 and N7,500 per 50kg bag, depending on the brand. This is a significant drop from the average of N12,000 which most dealers were selling in February and March”, he said.
A dealer in Agege area of the state who identified himself as Taofik Olateju, told the source that sales are picking up due to the drop in price.
He recalled that Nigerians at a point stopped buying due to the high price of the product at N15,000 per bag.
“I am sure most dealers ran at a loss then because we had mainly old stocks which we wanted to offload quickly”, he said, confirming that the product sells for between N7,500 and N8,000, depending on the brand and the demand for the brand.
Continuing, Olateju noted that “because the naira is now doing well against the dollar, it will be unreasonable for manufacturers to continue to sell the product at the old prices. I also believe that the federal government’s intervention and the threat to license more importers may have worked, leading to the reduction in price”.
In Enugu, the source reports that the product sells for between N7,200 and N7,500 depending on the brand and location.
“This is a city where the price of a 50kg bag went for as high as N12,000 and N13,000 in some cases in February and March”, Samuel Chikwendu said.
He added that the prices of other building materials, especially iron rods, have also dropped considerably which is why, he said, activities are picking up again at construction sites.
The story is slightly different in Owerri, the capital of Imo State, where Innocent Okonkwo told the source that low demand was also driving the price drop, adding that a 50kg bag was selling for N9,000 on the average in the state.
Sundry market observers are optimistic of further price reductions, but they remain cautious as manufacturers, wholesalers, and retailers continue to play critical roles in setting prices for end-users.
They lamented, however, that despite Nigeria’s status as one of the largest producers of cement in Africa, the price of the product continues to rise, particularly in the face of high inflation impacting the building materials market generally.
Okpala in Abuja highlighted the variations arising from direct sourcing from manufacturers versus procurement through dealers, with traders holding old stocks selling products at prices ranging from N8,500, N8,300 to N8,000 per bag.
Lucy Nwachukwu, another dealer in Abuja, said the significance of  procurement volume in determining cement costs, noting that stability in prices has been observed over the past month, with the product retailing for between N7,000 and N7,800 depending on the brand.
In Port Harcourt also, a customer, Daniel Etteobong Effiong, said the price goes between N7500 to N8500, depending on the brand and the location one is buying from.

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