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CASE OF THE WEEK: LAW IN PRACTICE

CAN A COURT TRANSFER A CASE IT HAS NO POWER TO HEAR?

NIMASA v. IHENACHO & ORS
(2026) LPELR-83733(SC)

BRIEF FACTS

The 1st and 2nd Respondents (Hon. Captain Emmanuel Ihenacho and Integrated Oil and Gas Limited) instituted an action at the High Court of Lagos State against the Appellant (NIMASA) and four other individuals. They sought damages totalling ₦90,349,000,000.00, interest at 25% per annum from 14 September 2012 until liquidation, an order compelling the publication of a retraction and apology on designated media platforms, and other reliefs including costs.

NIMASA filed a preliminary objection contending that the Lagos State High Court lacked jurisdiction to entertain the suit; that the suit was an abuse of court process due to a related pending action before the Federal High Court; that the action was statute-barred; and that necessary parties against whom allegations were made had not been joined in the proceedings.

The trial court dismissed the preliminary objection. On the grounds of jurisdiction and abuse of process, it held against NIMASA. On the statute of limitation and non-joinder grounds, it deferred those issues to the Case Management Conference stage, holding that they were better suited for examination at that point.

NIMASA appealed to the Court of Appeal. The Court of Appeal allowed the appeal and set aside the trial court’s decision, holding that the Lagos State High Court indeed lacked jurisdiction. However, rather than striking out the suit, the Court of Appeal proceeded to order that it be transferred to the Federal High Court for accelerated hearing and determination, purportedly exercising its powers under Section 15 of the Court of Appeal Act and Section 22(3) of the Federal High Court Act.

Dissatisfied with the order of transfer rather than an order striking out the suit, NIMASA appealed to the Supreme Court.

RATIO DECIDENDI

The Supreme Court allowed the appeal, basing its decision on the following legal findings:

Proper Order for Lack of Jurisdiction: The general principle of law is that where a court lacks jurisdiction to entertain a matter, the only appropriate and proper order to make is to strike it out. A court that lacks jurisdiction does not transfer and cannot transfer.

Unconstitutionality of Section 22(3): Section 22(3) of the Federal High Court Act, which purports to prescribe what a State High Court should do when it considers that a matter ought to have been initiated in the Federal High Court, is unconstitutional and a nullity. It was declared void by the full Supreme Court in Fasakin Foods (Nig.) Ltd. v. Martins Babatunde Shosanya (2006) 10 NWLR (Pt. 987) 126 and that position was affirmed in this case.

Legislative Competence: The National Assembly has no power to legislate on the practice and procedure of a State High Court. That authority is vested solely in the State House of Assembly under the Constitution. At the time the relevant constitutional provisions came into force, Lagos State had its own High Court Law and Civil Procedure Rules, which made no provision for the transfer of matters to the Federal High Court.

Distinction in Transfer Powers: By virtue of Section 22(2) of the Federal High Court Act, the Federal High Court has the competence to transfer a cause or matter to a State High Court or the Federal Capital Territory, Abuja. That power is one-directional. There is no reciprocal constitutional provision or valid State law enabling a State High Court to transfer matters upward to the Federal High Court.

Limits of Section 15 of the Court of Appeal Act: The Court of Appeal cannot invoke its general powers under Section 15 of the Court of Appeal Act to make an order that the trial court itself was constitutionally barred from making. The Court of Appeal’s powers on appeal cannot exceed the powers of the court from which the appeal originates.

Authority of Precedents: Cases are only authorities for what they actually decided in the context of their prevailing facts. The Supreme Court reaffirmed this principle in addressing the reliance placed on earlier decisions by the respondents.

LEGAL SIGNIFICANCE

Upholding Constitutional Supremacy: The case reaffirms that any statute, including a Federal Act, that infringes upon the constitutional division of legislative powers between the National Assembly and State Houses of Assembly must be declared void and of no effect.

Procedural Jurisdictional Clarity: It clarifies that procedural jurisdiction — meaning the power of a court to make specific orders such as an order of transfer — is just as critical as substantive jurisdiction. A court must have both before it can act.

Protection of State Judicial Autonomy: The decision protects the independence of the State Judiciary by affirming that the National Assembly cannot dictate the internal practice and procedure of State High Courts through Federal legislation.

One-Way Transfer Rule Confirmed: The ruling firmly establishes that the transfer power under the Federal High Court Act flows in only one direction — from the Federal High Court downward to a State High Court — and not the reverse.

KEY PRINCIPLE

When a State High Court finds that it lacks jurisdiction to hear a matter, the only lawful order it can make is to strike out the suit. It cannot transfer the suit to the Federal High Court. Section 22(3) of the Federal High Court Act, which purported to authorise such a transfer, has been declared unconstitutional and is a nullity. The Court of Appeal equally cannot use its appellate powers to do what the State High Court itself was constitutionally barred from doing. The correct order, always, is a strike out — not a transfer.

🚨 CBN Proposes Major Changes for Financial Holding Companies (HoldCos)

The Central Bank of Nigeria has released a draft of revised HoldCo Guidelines, and the proposed changes could significantly affect banks and financial groups.

Key proposals include:

📌 Higher capital requirements

📌 Minimum 51% ownership in subsidiaries

📌 Simpler ownership structures

📌 Stricter rules for shared services

📌 Expanded governance and reporting obligations

If adopted, many financial groups may need to review their structures, compliance systems, and governance frameworks.

The Guidelines are still in draft form, meaning stakeholders can review and submit comments before they become final.

Stay informed. Regulatory changes often require preparation long before implementation.

Follow for legal updates.

KNOW YOUR CONSTITUTION

PART 3: LOCAL GOVERNMENT, STATE CREATION AND BOUNDARY ADJUSTMENTS

The Constitution does not only establish the Federal and State Governments. It also guarantees a system of Local Government Councils and provides a framework for the creation of new states and the adjustment of boundaries within the Federation.

LOCAL GOVERNMENT (SECTION 7)

The Constitution guarantees a system of democratically elected Local Government Councils.

States are responsible for ensuring the existence, structure, composition, finance, and functions of Local Government Councils in accordance with the law.

Local Governments play a vital role in governance by bringing government closer to the people and delivering services at the grassroots level.

STATE CREATION AND BOUNDARY ADJUSTMENTS (SECTION 8)

The Constitution recognises that there may be circumstances requiring the creation of a new state or the adjustment of existing boundaries. However, such changes cannot be made arbitrarily.

The process is deliberately rigorous and may involve:

• Formal requests from affected communities or areas.
• Legislative approvals.
• Approval by affected persons through a referendum where required.
• Further constitutional and legislative processes.

WHY IS THE PROCESS SO STRICT?

The creation of states and adjustment of boundaries can affect governance, representation, revenue allocation, political interests, and community identity.

For this reason, the Constitution requires extensive consultation and multiple levels of approval to ensure that such changes reflect the wishes of the people and promote national stability.

KEY TAKEAWAY

The Constitution guarantees democratically elected Local Government Councils and provides a structured process for creating new states and adjusting boundaries. These provisions help ensure orderly governance, representation, and national stability.

This is for public education and does not constitute legal advice.

CHILD ADOPTION IN NIGERIA: UNDERSTANDING THE PROCESS

Adoption is a legal process through which a person becomes the lawful parent of a child who is not biologically theirs, creating a permanent parent-child relationship with all accompanying rights and responsibilities.

While procedures differ across states, the process generally involves:

• Making preliminary enquiries and obtaining information on eligibility and requirements.
• Submitting an application to the relevant Ministry or Social Welfare Department.
• Background investigations into the applicant’s character, health, financial capacity, and suitability.
• Home assessments by social welfare officers.
• Interviews and screening.
• Placement and monitoring of the child before final approval.
• Grant of an adoption order where the adoption is found to be in the child’s best interests.

HOW LONG DOES IT TAKE?

Adoption is not merely a paperwork exercise. Authorities are required to conduct investigations, assessments, and monitoring to safeguard the welfare of the child. As a result, the process may take several months and, in some cases, over a year.

COMMON MISCONCEPTIONS

• Adoption is not a private arrangement. Legal procedures must be followed.
• The child’s best interests remain the primary consideration.
• Requirements and timelines may differ from one state to another.

CONCLUSION

Adoption is a life-changing decision that creates a permanent legal relationship between a parent and a child. While the process may be lengthy, the safeguards are designed to ensure that children are placed in safe, stable, and nurturing homes.

🇳🇬 Happy Day, Nigeria!

The is the foundation of Nigeria’s democratic system. It defines how government operates, distributes power, protects rights, and guides public institutions.

But can it be changed?

📖 KNOW YOUR CONSTITUTION

PART 4: AMENDING THE CONSTITUTION

The Constitution is the supreme law of Nigeria, but it is not completely rigid. It provides a process through which its provisions may be amended when necessary.

Can the Constitution be changed?

Yes. However, constitutional amendments cannot be made through ordinary legislation. They must satisfy special constitutional requirements.

Under Section 9, most constitutional amendments require:

• The approval of at least two-thirds of the members of each House of the National Assembly; and

• The approval of not less than two-thirds of the Houses of Assembly of the States.

For certain provisions, including state creation and boundary adjustments (Section 8) and the constitutional amendment process itself (Section 9), an even higher threshold of four-fifths of the members of each House of the National Assembly applies.

Why is the process so strict?

Because the Constitution establishes the framework of government, protects rights, and supports democratic governance. Significant constitutional changes should therefore reflect broad national support.

Key Takeaway

The Constitution can be amended, but only through a rigorous process involving both the National Assembly and the State Houses of Assembly.

This helps ensure that constitutional changes are made carefully and with broad support.

This is for public and does not constitute legal advice.

🌐 www.aalawsng.com

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GOING INTO BUSINESS WITH SOMEONE? AGREE ON THESE FIRST.

Many business disputes do not begin because the business failed.

They begin because the parties never clearly agreed on key issues from the start.

Before starting a business with a partner, friend, family member, investor, or co-founder, consider the following:

• Ownership – Who owns what percentage of the business?

• Decision-Making – Who has authority to make key business decisions?

• Profit Sharing – How will profits be distributed?

• Exit Rights – What happens if a party wants to leave the business?

• Dispute Resolution – How will disagreements be resolved if they arise?

At the beginning of a business relationship, everyone is usually focused on opportunities and growth. However, clear agreements help provide certainty, manage expectations, and reduce the risk of future disputes.

A well-drafted agreement does not create mistrust. It creates clarity.

Good relationships matter. Clear agreements protect them.

CASE OF THE WEEK: LAW IN PRACTICE WEEK 15

When Legal Capacity and Police Complaints Collide: Lessons on Fundamental Rights Enforcement

Genesis Fast Food & Events Center, Port Harcourt & Anor v. Aboli & Ors (2026) LPELR-83861(CA)

BRIEF FACTS

Mrs. Rosemary Moses Aboli occupied a property in Port Harcourt, claiming she had been put in possession by a deceased caretaker of the owner. She admitted that there was no formal tenancy agreement.

The Appellants maintained that the property had been lawfully acquired by Genesis Foods Nigeria Limited, a separate company that was not a party to the suit. Following a dispute over possession, both parties made complaints to the police at different times, resulting in arrests.

Mrs. Aboli subsequently commenced a fundamental rights action and was awarded ₦10 million damages by the trial court.

DECISION OF THE COURT OF APPEAL

The Court of Appeal set aside the judgment and held:

• An entity not recognised by law lacks the capacity to sue or be sued. The 1st Appellant, sued as “Genesis Fast Food and Events Center, Port Harcourt (Genesis Group),” was not a legal person known to law.

• The trial court’s finding of a contractual relationship was unsupported by the evidence, particularly as no tenancy agreement existed and the property’s legal owner was not a party to the suit.

• A person who genuinely reports a suspected crime to law enforcement cannot be held liable for a breach of fundamental rights merely because the police acted on the complaint, unless the report was false, malicious, made in bad faith, or the complainant directed the arrest.

• Courts must base their decisions on evidence and not speculation.

KEY TAKEAWAY

Legal personality remains a fundamental requirement in litigation. An entity not recognised by law cannot properly sue or be sued.

In addition, the genuine reporting of a suspected crime does not amount to a breach of fundamental rights where the police independently exercise their statutory powers.

KNOW YOUR CONSTITUTION

PART 2: THE DISTRIBUTION OF POWER IN NIGERIA

The Constitution prevents the concentration of governmental power in one institution by separating powers among three arms of government: the Legislature, the Executive, and the Judiciary.

This system is designed to promote accountability, prevent abuse of power, and ensure effective governance.

The Law-Makers (Section 4)
Legislative power is vested in the National Assembly at the federal level and the Houses of Assembly at the state level.

The National Assembly makes laws for the Federation, while State Houses of Assembly make laws for their respective states.
Legislative powers are distributed through:
• The Exclusive Legislative List, on which only the Federal Government can legislate.
• The Concurrent Legislative List, on which both the Federal and State Governments can legislate.
• Residual matters, which generally fall within the legislative competence of the States.

The Constitution also prohibits the enactment of laws that retrospectively create criminal offences or impose criminal penalties for acts that were not offences when they were committed.

The Law-Enforcers (Section 5)
Executive power is vested in the President at the federal level and the Governors at the state level.
The Executive is responsible for implementing and enforcing laws, managing public administration, and overseeing the day-to-day affairs of government.
Government ministries, departments, agencies, and other public institutions generally operate under the authority of the Executive.

The Judges (Section 6)
Judicial power is vested in the courts.
The courts interpret laws, resolve disputes, and ensure that governmental actions comply with the law.

While the courts generally have jurisdiction over civil rights and obligations, the Constitution limits their ability to determine whether government actions comply with certain Fundamental Objectives and Directive Principles contained in Chapter II of the Constitution.

This is for public education and does not constitute legal advice.

CHILD ADOPTION IN NIGERIA: WHO CAN ADOPT AND WHAT IS REQUIRED?

Adoption is a legal process through which a person assumes the permanent parental rights and responsibilities for a child who is not biologically theirs. Once an adoption is completed, the adoptive parent acquires the same legal rights and obligations as a biological parent.

In Nigeria, adoption is regulated by state laws and relevant child protection authorities, with the overriding consideration being the best interests of the child.

Who Can Adopt a Child in Nigeria?

The requirements vary from state to state, but prospective adoptive parents are generally expected to:
• Be adults of sound mind.
• Demonstrate the financial capacity to care for a child.
• Be medically fit.
• Possess good character and a stable lifestyle.
• Satisfy the relevant authorities that they can provide a suitable home environment for the child.

Depending on the applicable law, additional requirements may apply to married couples, single applicants, and foreign nationals.

Documents Commonly Required
Prospective adoptive parents may be required to provide:

• Birth Certificate or Declaration of Age.
• Valid Means of Identification.
• Passport Photographs.
• Medical Certificate of Fitness.
• Police Clearance Report.
• Evidence of Income or Financial Capacity.
• Proof of Residential Address.
• Marriage Certificate (where applicable).
• Evidence of Divorce or Judicial Separation (where applicable).

Additional documents may be requested during the assessment process.

In Part 2, we will examine the adoption process, timelines, and important misconceptions about adoption in Nigeria.

KNOW YOUR CONSTITUTION

PART 1: THE FOUNDATION

This part of the Constitution lays the foundation for everything else. It defines what Nigeria is, how it is governed, and the authority of the Constitution itself.

Section 1: The Ultimate Rulebook (Constitutional Supremacy)

The Constitution is the highest law in Nigeria.

* The Supreme Law: Every person and institution in Nigeria, from the President to ordinary citizens, is subject to the Constitution.

* The “Anti-Coup” Clause: Section 1(2) provides that Nigeria can only be governed in accordance with the Constitution. Any attempt to seize power outside the constitutional process is unconstitutional.

* The “No-Contradiction” Rule: Any law that conflicts with the Constitution is void to the extent of its inconsistency.

Section 2: The “One Team” Clause (Unity and Federation)

This section defines Nigeria’s political structure.

* One United Country: Nigeria is declared to be indivisible and indissoluble. No State or group has a constitutional right to secede from the Federation.

* Shared Management (Federation): Nigeria operates a federal system of government, with powers shared between the Federal Government and the State Governments.

Section 3: The National Map (States and Local Government Areas)

This section organizes the country into administrative units.

* The 36 States and Abuja: The Constitution officially recognizes the 36 States and the Federal Capital Territory, Abuja.

* The Grassroots: It also establishes the 768 Local Government Areas and 6 Area Councils in the FCT, which serve as the level of government closest to the people.

* The Blueprint: These States, LGAs, and Area Councils are listed in the First Schedule to the Constitution.

Key Takeaway:
The Constitution is Nigeria’s supreme law. It establishes Nigeria as one united federation and provides the framework for governance at the federal, state, and local levels.

This is for public education and does not constitute legal advice.