The Nigerian cement armada saga was a whirlpool of events that culminated in cases instituted by contractors engaged to supply large quantities of cement by the Nigerian Ministry of Defense following the CBN’s unwillingness to honour letters of credit opened to cover payments for the supplies in ships which waited months unend at the Lagos Port waiting to be cleared. It is estimated that about 16 to 20 million tonnes were shipped.
The cases consolidated the restrictive theory of the doctrine of sovereign immunity captured in the erudite judgment of Lord Denning M.R. in the locus classicus Trendtex v. Central Bank of Nigeria (CBN) which recognised the exception of the sovereign engaged in “commercial activity”. “The King in the market place is subject to the same rules as all other common folk” as it was colorfully put and espoused by the Master of Rolls.
We have created this post to inform and educate readers on the International law doctrine of sovereign immunity, the relevant cases, law and evolving principles and applicability.
WODI & WODI 