Facts:

On 04/06/2009, the Appellant lent the sum of N350,000.00 to the Respondent on two installments of 30% monthly interest. The Appellant is a money lender, trading under the name and style of Temo and Brother Money Lenders Cooperative. The Respondent utilized the money and refused to pay both the principal and the interest. The Appellant reported the matter to the police who arrested the Respondent wherein the Respondent was made to pay the sum of N300,000 to the police. Meanwhile, according to the Appellant, by the time the payment was made by the Respondent, interest on the loan accrued for about 48 months. The Respondent was made to pay an aggregate sum of N500,000 representing interest in two instalments. When he called the Appellant to make the first payment, the Appellant refused the sum and instituted an action claiming N5,090,000.00.

The defendant at the trial raised two defences. First, he alleged that by the provisions of Money Lenders law of Bayelsa State, the interest charged by the Appellant are in clear violation of the law and therefore unenforceable; the interest is illegal. Secondly, the whole claim is statute barred by Section 28 of the Money Lenders Law of Bayelsa. The trial Court held that the suit of the Appellant was statute barred and dismissed same.

Dissatisfied, the appellant appealed to the Court of Appeal.