Introduction: Why Preparation Matters

Debt recovery disputes are common in Nigeria, ranging from unpaid invoices and dishonored cheques to partners withholding agreed sums. Proper preparation reduces time and legal spend, improves negotiation leverage, and increases the likelihood of recovery without litigation. A well prepared client gives a lawyer immediate clarity on facts, evidence, and realistic outcomes, which improves strategy from the start.

Steps You Can Take Before Seeing a Lawyer

1. Communicate Constructively With the Debtor

Send polite reminders by SMS, WhatsApp, email, or letter. Keep a dated log of calls and messages. Many accounts are settled once the debtor sees consistent follow up and clear records.

2. Issue a Simple Pre Lawyer Demand Letter

State the amount owed, the basis of the debt, and a short deadline for payment such as 7 to 14 days. Use a professional tone and avoid insults or threats. Keep proof of dispatch and delivery.

3. Explore Realistic Settlement Options

If the debtor faces cash flow challenges, consider phased payments. Put any plan in writing with specific dates and consequences for default. Avoid vague promises.

4. Confirm Limitation Periods

Most simple contract debts in Nigeria are time barred after 6 years from the cause of action. For specialty contracts under deed the period can be longer such as 12 years. Act promptly to avoid loss of rights.

5. Identify Collateral or Guarantors

Review the original agreement for collateral and guarantor clauses. Notify guarantors early and retain proof of notices sent.

Evidence and Documents to Gather

Collect and label the following items. Originals are best. Certified copies or clear scans are helpful for quick review.

• Written agreement or contract. Include amendments and annexures.
• Invoices and receipts. Ensure numbering is sequential and amounts tally.
• Proof of delivery or service completion such as delivery notes, waybills, or completion certificates.
• Proof of payments or dishonored instruments such as bank transfer slips or cheques with return memos.
• Correspondence such as emails, WhatsApp, SMS, and letters that admit liability or request time to pay.
• Guarantor or collateral documents and any notices to guarantors.
• Pre lawyer reminders and demand letters with proof of dispatch or delivery.

Common Mistakes Clients Make

• Relying on verbal promises without written confirmation or recordings.
• Letting debts linger beyond limitation periods.
• Issuing threats or attempting illegal self help actions.
• Failing to compute contractual or statutory interest accurately.
• Mixing personal relationships with business without a formal contract.

Common Misconceptions

• Police can recover civil debts. In general debt recovery is civil. Police involvement is limited to criminal matters such as fraud.
• A lawyer can guarantee recovery. Outcomes depend on evidence, debtor solvency, and enforceability.
• Oral admissions alone are enough. Courts prefer written or recorded proof.
• Suing means instant payment. Litigation can be lengthy. Settlement can be faster in many cases.

Preparing for the Consultation

Bring a clear and chronological account. Use headings for contract, delivery, payments, defaults, and communications. Provide realistic objectives and any settlement flexibility.

What to Organize

• Debt timeline with dates and supporting documents.
• Copies of key documents listed above.
• Details of assets, bank relationships, and trading status of the debtor where known.
• Any prior settlement attempts and outcomes.
• Your realistic objective such as immediate payment, phased plan, or final settlement terms.

Questions to Ask Your Lawyer

• What remedies are available in my case such as demand, mediation, arbitration, or litigation.
• Expected timeline and key stages from letter of demand to enforcement.
• Cost estimate including letters, filing, professional fees, and enforcement.
• Prospects of successful enforcement against this debtor.
• Whether pre action settlement is advisable and on what terms.

Practical Insights

• ADR clauses: Many commercial contracts include mediation or arbitration. These pathways can be faster and private.
• Company status: Check the debtor company status with CAC. A struck off or dormant entity complicates recovery.
• Asset picture: Victory is meaningful only if enforceable. Consider bank accounts, receivables, or attachable assets.
• Cost benefit: For small debts, a negotiated discount for prompt payment can be wiser than a long dispute.
• Recording admissions: Request written acknowledgements or emails that confirm liability or payment plans.

Frequently Asked Questions

Can I use the police to recover my money

Debt recovery is civil. Police involvement is usually limited unless there is fraud or other criminality. Seek legal advice before making any report.

What is the time limit for suing for a debt in Nigeria

Most simple contract debts are time barred after 6 years from the date the cause of action arose. Contracts under deed may enjoy longer periods such as 12 years.

Can I claim interest

Yes where the contract provides for interest or where a court exercises discretion to award pre judgment and post judgment interest.

What if the debtor has no assets

Enforcement will be difficult. Your lawyer may advise negotiation, security, or writing off the debt if costs outweigh benefits.

Can I pursue the guarantor

Yes where there is a valid guarantee. Guarantors can be joined in demand and suit according to the guarantee terms.

Is mediation binding

A signed mediation settlement is enforceable as a contract and can be adopted as consent judgment where appropriate.

Final Thoughts

Effective debt recovery starts with prompt action, clean records, and realistic strategy. Prepare your evidence, consider settlement where practical, and work with your lawyer on enforcement paths that match the debtor profile and debt size.