In fact, where interest is not even claimed on the Writ, but the facts are pleaded as did the Appellant in its amended Statement of Claim and evidence was given which showed entitlement thereto, the Court may award interest as a general rule. See EKWUNIFE V. WAYNE (W/A) LTD (1989) 5 NWLR (PT.122) 428.
— U.M. Abba Aji, JSC. Cappa v NDIC (2021) – SC.147/2006
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In Himma Merchants Ltd. V. Alhaji Inuwa Aliyu, (1994) 6 SCNJ (Pt.1) 87 (1994) 5 NWLR (Pt. 347) 657, this court in a similar situation held as follows per Onu, JSC: “…..Where therefore there is no evidence whatsoever, as in the instant case, that the claim of interest is founded upon any rationale e.g. mercantile custom or trade usage known to the parties the claim of interest for 20% per month from July, 1988, which anti-dates the judgment passed on 27th October, 1989 by the trial court is without foundation and ought to have been disallowed by the court below.” See also; Union Bank of Nigeria Ltd. Vs Prof. A. O. Ozigi (1994) 3 NWLR (Pt.333) 385 (1994) 3 SCNJ 42 at 56.
Also, the law is now clear that a claim for interest must be specifically pleaded. Some of the pleading requirements may be summarized as follows: If the claim for interest is under a contract, express or implied or under mercantile usage, the relevant contractual term or any other relevant facts and matters relied upon for the entitlement must be specifically pleaded. If the plaintiff claims interest under the equitable jurisdiction of the court, he must plead all the relevant facts and matters relied upon to support such claim (See Bullen and Leake and Jacobs, (13th Ed.) pp. 567 – 8). It is evident that the appellant had completely ignored these requirements.
— Ayoola, JSC. Saeby v. Olaogun (1999) – SC.261/1993
Interest may be awarded in a case in two distinct circumstances, namely: (i) As of right: and (ii) Where there is a power conferred by statute to do so, in exercise of the Court’s discretion. Interest may be claimed as a right where it is contemplated by the agreement between the parties, or under a mercantile custom, or under a principle of equity such as breach of a fiduciary relationship. Where interest is being claimed as a matter of right, the proper practice is to claim entitlement to it on the writ and plead facts which show such an entitlement in the statement of claim. See Per NNAEMEKA-AGU, JSC in EKWUNIFE V. WAYNE WEST AFRICA LTD (1989) LPELR-1104(SC) (PP. 33-42, PARAS. C-A).
— U.M. Abba Aji, JSC. Cappa v NDIC (2021) – SC.147/2006
The matter is not made easy by their claiming that they agreed on the interest rate of 13% when there was no such clause in the deed of legal mortgage and when it is a well-known fact which this court takes judicial notice of that interest rates are dependent of the policy on the Central Bank. No interest rate is static. It is not immutable. It varies depending on the nature of Government policy which follows the state of the economy.
– Pats-Acholonu, J.S.C. Pinder v. North (2004)
In TATE and LYLE FOOD AND DISTRIBUTION LTD. V. GREATER LONDON CONOI AND ANOTHER. 1981 3 All E.R. 716 Forbes J on how to arrive at the rate of interest in Commercial cases held that one must not look at the profit which the Defendant wrongfully made out of the money he withheld but at the cost to the plaintiff of being deprived of the money which he should have had. In my view interest in commercial cases of this nature is not awarded against the Defendant as a punitive measure for having kept the plaintiff out of his money but as an attempt to achieve restitution in intergrum.
It is also trite in law that when in a business transaction like the one under discourse a party is found to have withheld money due to the other party for sometime after being due, it is a natural consequence that flows from the default that interest be paid for the period of default until liquidation. I rely on ACME Builders Ltd v Kaduna State Water Board (1999} 2 SC 1 at 9.
— M. Peter-Odili, JSC. Cappa v NDIC (2021) – SC.147/2006
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