Recovering unpaid supplier payments in Nigeria is a common challenge for importers, wholesalers, and distributors working across African supply chains. Late or missing payments can disrupt inventory, damage relationships, and tie up working capital. However, with the right structure, documentation, and local support, these risks can be significantly reduced—and often resolved without lengthy disputes.

Understanding why supplier payments go unpaid in Nigeria

Before you can recover unpaid supplier payments in Nigeria, it helps to understand why payments stall in the first place. Common reasons include:

• Foreign exchange (FX) constraints – Difficulty accessing foreign currency through official channels can delay settlement to overseas suppliers.

• Documentation issues – Incomplete shipping, customs, or banking documentation can put payments on hold.

• Disputes over quality or quantity – Buyers may withhold payment due to damaged goods, short deliveries, or mismatched specifications.

• Cash flow challenges – Local companies may experience delayed receivables, leading them to push out payments to their own suppliers.

• Banking and compliance checks – Tightened anti-money laundering (AML) and Know Your Customer (KYC) processes can slow cross-border payments.

For distributors, importers, and manufacturers, separating genuine disputes from avoidable process failures is the first step towards recovery.

How to structure deals to recover unpaid supplier payments in Nigeria faster

The best way to recover unpaid supplier payments in Nigeria is to reduce the likelihood of default from the outset. Good deal structure gives you leverage and clarity later if something goes wrong.

Key measures include:

• Use clear, written contracts
  Contracts should specify payment terms, Incoterms, dispute resolution mechanisms, jurisdiction, and timelines. This documentation is vital if you later need to pursue unpaid supplier invoices.

• Align commercial and logistics terms
  Linking payment milestones to logistics events (e.g., against shipping documents, on arrival, after inspection) makes it easier to prove when a payment is due and reduces ambiguity.

• Build in inspection and quality checks
  Pre-shipment inspection or independent quality verification helps prevent disputes that may be used as a reason to delay payment.

• Leverage trusted intermediaries
  Working with a trading and logistics partner based in Nigeria, such as Wigmore Trading, can improve counterparty vetting, document handling, and local follow-up when payments are slow.

Practical steps to recover unpaid supplier payments in Nigeria

When a payment is overdue, it is important to act systematically and keep a documentary trail.

1. Reconcile documents and confirm entitlement

Start by confirming that all contractual conditions for payment have been met:

• Purchase order and contract signed

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• Goods delivered or shipped according to agreed terms

• Delivery notes, bills of lading, and customs documents available

• Any agreed inspections or certifications completed

If your own documentation is incomplete, the buyer may have grounds to delay—closing these gaps strengthens your position.

2. Issue formal reminders and statements of account

Move beyond informal emails and calls:

• Send formal payment reminders referencing the contract, invoice numbers, and due dates.

• Provide a statement of account showing outstanding balances, previous payments, and any agreed credit notes.

• Set a clear final deadline and state the consequences (e.g., suspension of further deliveries, interest where allowed by contract).

Well-drafted correspondence signals that you are serious and creates written evidence if legal steps become necessary.

3. Escalate using local representation

For overseas suppliers, time zones and distance can make escalation hard. Using a local partner in Nigeria helps to:

• Visit the buyer in person

• Clarify operational issues slowing payment

• Negotiate realistic payment plans based on the buyer’s cash flow

• Apply commercial pressure by linking future access to stock or credit to the settlement of overdue balances

Wigmore Trading, for example, supports suppliers and distributors by combining on-the-ground relationship management with logistics visibility, helping to unblock issues that purely remote communication can’t resolve.

4. Explore structured repayment or collateral

If the buyer acknowledges the debt but is struggling with cash flow:

• Propose staggered payments against a clear schedule

• Consider partial offsets against future deliveries, where commercially viable

• Where appropriate and legal, seek additional security, such as guarantees or collateral, to back the repayment plan

This balanced approach often recovers unpaid supplier payments in Nigeria more efficiently than immediate litigation.

Legal and compliance options to recover unpaid supplier payments in Nigeria

Where cooperative approaches fail, you may need to consider formal recovery routes:

• Engage a local legal firm experienced in commercial and trade disputes to issue demand letters and advise on litigation options.

• Refer to arbitration or mediation if these were specified in your contract; alternative dispute resolution can be faster and less disruptive than court action.

• Review regulatory and tax implications, ensuring your documentation supports any claim you make, particularly for cross-border transactions.

A trading partner with long-standing experience in Nigeria can help coordinate with local counsel, provide transaction records, and ensure your logistics data supports your claims.

How Wigmore Trading supports recovering and preventing unpaid supplier payments in Nigeria

Wigmore Trading works with importers, wholesalers, retailers, and manufacturers that rely on efficient, predictable supply into and across Nigeria and other African markets. In the context of recovering unpaid supplier payments, Wigmore Trading can:

• Assist with due diligence on Nigerian buyers before contracts are signed

• Structure logistics and documentation to minimise disputes around delivery and quality

• Provide local relationship management, helping to resolve issues early and chase overdue balances professionally

• Support ongoing supply chain planning, so that credit exposure is managed alongside stock levels and market demand

By pairing robust documentation with practical on-the-ground support, businesses can significantly reduce the risk of unpaid invoices and improve recovery outcomes when issues arise.

If you are facing challenges trying to recover unpaid supplier payments in Nigeria—or you want to prevent them in the first place—Wigmore Trading can help.