Statute of Limitation: When Acknowledgement of Debt Will Revive the Right of Action

On Friday, the 12th of December, 2025, the Supreme Court of Nigeria heard arguments regarding a lawsuit between Petroleum Products Marketing Co. Ltd and Masters Maritime Limited. The dispute arose when the Respondent failed to pay the Appellant USD1,013,678.80 for petroleum products delivered in 1997, despite several demands from the Appellant.

The Respondent attempted to settle the debt in 2020, but ultimately breached the agreement. The Appellant subsequently filed a lawsuit in the High Court of Lagos State, claiming USD1,013,678.80 in damages, plus interest. The Respondent raised two preliminary objections: that the case was an admiralty matter, and that it was not within the jurisdiction of the trial court due to the involvement of a Federal Government agency.

The trial court ruled that the case was not an admiralty matter, but agreed that the State High Court lacked jurisdiction in such cases. The Appellant appealed to the Court of Appeal, where the Respondent argued that the suit was barred by the statute of limitations, as it was filed more than six years after the cause of action occurred.

The Appellant countered, arguing that the cause of action arose when the breach occurred, and that the lawsuit was not barred. The Supreme Court ultimately held that the Appellant's claim was statute-barred, as the cause of action had already arisen by the time the lawsuit was filed.