Federal and State Courts
Nigeria operates Federal High Courts alongside the High Court of each state, with jurisdiction determined by subject matter and the parties. Commercial contract claims generally go to a State High Court, and Lagos in particular has developed procedures aimed at moving commercial matters faster than the national norm.
Limitation is set by state legislation rather than federally, so the applicable period depends on where the claim is brought. Six years is common for simple contract, but it is a question to answer per state rather than assume.
The Undefended List
Where a claim is for a liquidated sum and the creditor deposes that there is no defence, the matter can be entered on the undefended list. The defendant must file a notice of intention to defend supported by an affidavit disclosing a defence on the merits; a bare assertion does not suffice.
Where nothing adequate is filed, judgment is entered without trial. For a documented supply debt this is materially faster than ordinary proceedings, and it is the route we plan for from the outset - which means the supporting affidavit and exhibits need to be assembled to that standard before filing rather than after.
Winding-Up Pressure
Under the Companies and Allied Matters Act, a company unable to pay its debts may be wound up, and a demand followed by the prospect of a petition carries commercial weight against a solvent debtor. As elsewhere, the instrument is inappropriate where a genuine dispute exists, and Nigerian courts will restrain its use as leverage.
Getting Paid in a Usable Currency
This is where Nigerian recoveries most often stall, and it has nothing to do with the courts. A judgment or settlement denominated in naira leaves a foreign creditor holding local currency that must then be converted and remitted - and access to foreign exchange is subject to the prevailing regulatory framework and market conditions.
The practical response is to address currency in the settlement itself: agreeing the currency of payment, the channel and the timing as terms of the agreement rather than assumptions behind it. Where a debtor has export earnings or an offshore affiliate, structuring payment around that is frequently the difference between a nominal recovery and a real one.
How Long Does a Nigerian Claim Take?
| Stage | Typical Duration | Cost |
|---|---|---|
| Letter of demand Formal demand, negotiation | 3–6 weeks | Low |
| Undefended list Filing to judgment where undefended | 3–9 months | Medium |
| Defended proceedings Full trial | 2–4 years | High |
| Winding-up petition Where the company cannot pay | 4–10 months | Medium |
| Enforcement and remittance Execution, then currency conversion | 3–12 months | Medium |
How Does SXB Global Handle a Nigerian Case?
We prepare for the undefended list from the first day, because the affidavit and exhibits determine whether it succeeds. In parallel we raise the currency question early - creditors who negotiate a naira settlement without addressing remittance frequently find the recovery incomplete months later. Where legal proceedings become appropriate, SXB Global coordinates the instruction of appropriately authorised local counsel. Legal services are provided by the relevant independent legal professionals.