Doing cross-border or local business in Nigeria can be highly rewarding, but delayed or unpaid invoices are a common challenge—especially in contract-based sectors such as import/export, construction, FMCG distribution, and logistics. Knowing how to recover contract payment in Nigeria in a structured, lawful way helps protect your cash flow and business relationships.

Below is a practical framework for foreign and local companies, plus how a trade partner like Wigmore Trading can support you in prevention and recovery.

Understanding Contract Payment Risk in Nigeria

Before you think about recovery, it helps to understand why contract payments are delayed or withheld in Nigeria:

• Ambiguous contracts – Vague scope, unclear milestones, or weak payment terms create room for disputes.

• Foreign exchange and liquidity constraints – Clients may face genuine cash-flow issues or delays in accessing FX.

• Approval and bureaucracy delays – Larger organisations or public entities may have multi-level sign-offs that slow payments.

• Documentation gaps – Missing delivery notes, waybills, inspection reports, or customs papers can be used as grounds to stall payments.

For importers, exporters, and distributors, these risks are heightened when dealing across borders, multiple jurisdictions, and long supply chains. Working with an experienced partner such as Wigmore Trading can help reduce these risks through structured contracts, vetted counterparties, and robust logistics documentation.

How to Recover Contract Payment in Nigeria Step by Step

Recovering contract payment in Nigeria is most effective when approached in stages, moving from informal negotiation to more formal enforcement only when necessary.

1. Review the Contract and Evidence

Your first step in trying to recover contract payment in Nigeria is to carefully review:

• The signed contract and any amendments

• Payment terms (currency, due dates, penalties, dispute clauses)

• Evidence of performance (invoices, delivery notes, signed waybills, proof of shipment, customs clearing documents, email approvals)

A clear paper trail strengthens your position and may be enough to persuade the debtor to pay once you raise the issue professionally.

Wigmore Trading’s operations teams place heavy emphasis on documentation—especially in logistics and wholesale distribution—so that, if a dispute arises, the factual basis for payment is easy to demonstrate.

2. Start with Negotiation and Commercial Resolution

In Nigeria, relationships matter. Often, payment delays are resolved through:

• Direct phone calls and follow-up emails

• Clarifying any quality or delivery issues

• Offering a structured payment plan where the client is genuinely under pressure

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• Involving senior management or mutual business contacts

This phase is about preserving the relationship while getting paid. Many disputes never reach court because practical commercial solutions are found.

A partner like Wigmore Trading, already on the ground and familiar with local business culture, can help mediate discussions, clarify commercial terms, and coordinate any remaining documentation or deliveries needed to unlock payment.

3. Send a Formal Demand Letter

If informal efforts fail, the next step to recover contract payment in Nigeria is usually a formal demand letter, drafted by a Nigerian legal practitioner. A good demand letter:

• Cites relevant contract clauses

• Summarises the goods/services delivered

• States the amount due and interest (if applicable)

• Sets a firm deadline for payment

• Signals that legal action or alternative dispute resolution (ADR) may follow

Sometimes, this is enough to prompt payment, especially if the debtor wants to avoid litigation or damage to their reputation.

4. Use Alternative Dispute Resolution (ADR)

Many commercial contracts in Nigeria include an ADR clause—mediation or arbitration—before going to court. ADR can be:

• Faster than court proceedings

• More confidential, which matters for large corporates

• More flexible, allowing practical settlement structures

For cross-border contracts, arbitration in a neutral venue is common. When structuring contracts, Wigmore Trading can work with clients and their legal advisers to build in ADR mechanisms that make payment recovery more predictable and enforceable.

5. Enforce Payment Through Nigerian Courts

If negotiation and ADR fail, litigation may be necessary to recover contract payment in Nigeria. With legal advice, you might:

• File a claim for breach of contract in the appropriate court

• Seek judgment for the outstanding amount plus interest and costs

• Enforce against the debtor’s assets if judgment is granted

Litigation in Nigeria, as in many jurisdictions, can be time-consuming. That’s why robust contracts, ADR clauses, and preventative risk management are so important.

While Wigmore Trading does not act as a law firm, it can support clients with:

• Local market insight and introductions to reputable legal counsel

• Operational records and logistics documentation to support claims

• On-the-ground coordination where goods, warehouses, or distribution assets are involved

Preventing Contract Payment Problems Before They Arise

Recovering money is always harder than preventing non-payment in the first place. When entering supply, distribution, or logistics contracts in Nigeria, consider:

• Strong contract drafting – Clear scope, Incoterms, payment milestones, interest on late payments, and dispute resolution clauses.

• Credit checks and due diligence – Verify counterparties’ financial health and reputation.

• Secure payment structures – Use letters of credit, bank guarantees, deposits, or staged payments for large transactions.

• Robust supply chain controls – Ensure accurate documentation at every step: purchase orders, bills of lading, warehouse receipts, GRNs, PODs, and tax/compliance paperwork.

Wigmore Trading’s experience in African trade, wholesale distribution, and logistics means it can help design supply structures that reduce exposure to non-payment—whether you are exporting FMCG into Nigeria or sourcing goods from Nigerian suppliers.

How Wigmore Trading Supports Contract Payment Recovery

While the legal process must be led by qualified Nigerian counsel, Wigmore Trading can practically assist businesses seeking to recover contract payment in Nigeria by:

• Providing complete and organised transaction records

• Clarifying delivery timelines, stock movement, and handling discrepancies

• Coordinating with buyers, warehouses, and transporters to resolve commercial issues

• Helping structure future deals with stronger safeguards and better risk allocation

This combination of operational expertise and local market knowledge helps international and regional businesses trade with greater confidence.

Conclusion: Take a Structured Approach to Recover Contract Payment in Nigeria

To recover contract payment in Nigeria, businesses should combine strong documentation, commercial negotiation, ADR where available, and—if necessary—court enforcement. Prevention through better contracts, reliable partners, and sound logistics processes is equally critical.

If you are dealing with unpaid invoices linked to supply, distribution, or logistics in Nigeria, Wigmore Trading can help.

Contact Wigmore Trading today to streamline your sourcing and reduce payment risk in your African trade operations.