Offshore asset tracing in Nigeria plays a critical role in recovering funds, combating fraud, and supporting legitimate cross-border trade and investment. For businesses trading with Nigerian counterparties or investing in the region, understanding how offshore asset tracing works – and how to use it effectively – is increasingly essential.

What is offshore asset tracing in Nigeria?

Offshore asset tracing in Nigeria refers to the process of identifying, locating, and documenting assets that have been moved out of Nigeria into foreign jurisdictions, often through complex structures. These assets may include:

• Cash in foreign bank accounts

• Shares and securities

• Real estate in other countries

• Interests in offshore companies, trusts, or foundations

• High-value movable assets (vessels, vehicles, equipment, luxury goods)

In the context of import/export, wholesale distribution, FMCG and logistics, offshore asset tracing is often used to recover proceeds from unpaid shipments, fraudulent transactions, or misappropriated company funds.

Why offshore asset tracing in Nigeria matters for trade and logistics

For companies trading with or within Nigeria, credit risk and non-payment are real issues. Offshore asset tracing in Nigeria helps address several key challenges:

• Non-payment or default by counterparties – where a buyer receives goods but fails to pay, then quickly moves funds offshore.

• Diversion of trade finance – loans or letters of credit used for other purposes, with the proceeds hidden abroad.

• Asset stripping before insolvency – shareholders or directors moving assets overseas before a business collapses.

• Corruption and fraud risks – including kickbacks, inflated invoices or sham suppliers used to siphon money offshore.

By tracing and documenting offshore assets, creditors, investors and partners gain leverage in negotiations, litigation, or arbitration. This is particularly important in international trade, where counterparties may have operations and bank accounts in multiple jurisdictions.

How offshore asset tracing in Nigeria typically works

While every case is different, offshore asset tracing in Nigeria usually follows a structured process:

Initial case assessment and information gathering

The first step in offshore asset tracing in Nigeria is to gather all available information:

• Contracts, invoices, purchase orders and shipping documents

• Corporate documents and shareholder information

• Bank details, payment instructions and transaction records

• Email trails and internal correspondence

• Any prior due diligence reports or KYC information

This initial review helps define the scope of the tracing exercise, identify key entities and individuals, and highlight likely jurisdictions where assets may be held.

Data analysis, open-source intelligence and registry checks

Specialist teams then use a combination of:

• Open-source intelligence (OSINT): media, corporate databases, leaked datasets, social media

• Corporate and land registries in foreign jurisdictions

• Maritime and aviation asset registries

• Insolvency and litigation databases

This phase of offshore asset tracing in Nigeria focuses on building a clear map of related companies, beneficial owners, and connected assets overseas.

Following the money: transaction and banking analysis

Where lawful access is available, bank statements and transaction data can reveal:

• Transfers to offshore centres

• Layering across multiple accounts and entities

• Suspicious counterparties or shell companies

• Patterns that support a theory of asset dissipation or concealment

In many cases, this analysis supports:

• Freezing order applications (e.g. Mareva injunctions or equivalent in other jurisdictions)

• Disclosure orders compelling banks or intermediaries to provide further information

Legal strategy and cross-border enforcement

Offshore asset tracing in Nigeria is closely linked to legal strategy. Once assets are identified, lawyers may:

• Apply for interim freezing and disclosure orders in Nigeria and abroad

• Commence civil claims for recovery of debts or misappropriated funds

• Use arbitration awards or court judgments to enforce against offshore assets

• Negotiate settlements backed by solid evidence of recoverable assets

Coordination between Nigerian counsel and foreign lawyers is critical, particularly where assets are located in multiple jurisdictions.

Key considerations when using offshore asset tracing in Nigeria

Businesses considering offshore asset tracing in Nigeria should keep several practical points in mind:

• Timing is critical – the sooner tracing begins after a default or suspected fraud, the better the chance of success.

• Evidence quality matters – well-organised documentation and clear audit trails significantly improve outcomes.

• Jurisdictional complexity – each country has its own disclosure, privacy, and enforcement rules; a multi-jurisdiction approach may be required.

• Cost-benefit analysis – tracing and recovery efforts should be proportionate to the value and likelihood of recovery.

• Confidentiality and compliance – investigations must comply with local and international laws, including data protection and anti-money-laundering regulations.

How Wigmore Trading supports offshore asset tracing in Nigeria

While Wigmore Trading is not a law firm or private investigation agency, our experience in African supply chains, wholesale distribution and cross-border logistics means we can add real value around offshore asset tracing in Nigeria by:

• Improving front-end risk management

  • Helping clients assess counterparties, trade routes and payment terms

  • Advising on practical ways to reduce exposure in contracts, Incoterms, and credit limits

• Supporting documentation and transaction transparency

  • Ensuring trade documentation, shipping records and inventory data are accurate and complete

  • Structuring supply chain and distribution flows so that financial and physical movements are easier to track

• Collaborating with specialist advisers

  • Working alongside legal, forensic accounting and investigation teams who conduct offshore asset tracing in Nigeria and abroad

  • Providing industry insight, commercial context and supply chain data that can strengthen tracing and recovery strategies

By integrating better risk management with robust documentation and the right external expertise, companies trading with Nigeria can respond more effectively when things go wrong – and often prevent problems from occurring in the first place.

Building resilience with offshore asset tracing in Nigeria

Offshore asset tracing in Nigeria is no longer just a specialist legal tactic used in exceptional cases. For many organisations engaged in African trade, it is part of a broader risk-management toolkit.

When combined with sound due diligence, well-structured contracts, and reliable logistics partners, offshore asset tracing helps:

• Protect working capital and credit lines

• Deter would-be fraudsters and bad-faith counterparties

• Strengthen negotiation positions in disputes

• Preserve long-term trading relationships built on transparency and trust

For companies involved in import/export, wholesale, FMCG distribution or logistics linked to Nigeria, understanding how offshore asset tracing works – and building it into your broader risk strategy – can make a measurable difference to financial outcomes and supply chain stability.

If you are reviewing your exposure to payment risk, fraud, or counterparty default linked to Nigerian trade flows, Wigmore Trading can help.