Contracts run everyday Nigerian life — from a WhatsApp order for goods to a signed construction agreement. When one side doesn't do what they promised, that's a breach of contract, and Nigerian law gives you real remedies. The problem is that most people either don't know what they're entitled to, or assume the only route is an expensive, endless court battle. Neither is true.
This guide covers what makes an agreement a binding contract, what counts as a breach, the remedies available to you, and the fastest realistic path to a result.
When Is There a Contract at All?
A legally binding contract in Nigeria needs four things:
- Offer — one party proposes clear terms.
- Acceptance — the other agrees to those terms.
- Consideration — each side gives something of value (money, goods, services, a promise).
- Intention to create legal relations — this was a business/legal deal, not a casual family favour.
Importantly, a verbal agreement can be a valid contract. The challenge is proof — which is why bank transfers, invoices, WhatsApp chats, delivery notes, and witnesses matter so much. A few types of contract must be in writing to be enforceable, most notably agreements for the sale or transfer of land and certain guarantees.
What Counts as a Breach
A breach happens when a party, without lawful excuse, fails to perform an obligation under the contract. Common forms:
- Non-performance — the goods are never delivered, the service is never rendered, the payment is never made.
- Defective or partial performance — the work was done, but not to the agreed standard or quantity.
- Late performance — delivery after a deadline that mattered ("time was of the essence").
- Anticipatory breach — one party makes clear, before the due date, that they won't perform, allowing you to act early.
Not every failure is a fundamental breach. A minor slip may only entitle you to compensation, while a breach that goes to the root of the deal can let you terminate the whole contract and claim damages.
Your Remedies Under Nigerian Law
Damages — the default remedy
Money awarded to put you, as far as money can, in the position you would have been in if the contract had been performed. You can generally recover losses that flow naturally from the breach, plus losses both sides could reasonably foresee. You have a duty to mitigate — take reasonable steps to reduce your loss rather than let it balloon.
Specific performance
A court order compelling the party to actually do what they promised. It's used where damages aren't adequate — classically in land and unique-goods contracts. It's discretionary, so courts won't grant it for everything.
Rescission / termination
Where the breach is serious enough, you can treat the contract as ended, stop your own performance, and claim back what you gave. This is powerful but risky if you get the threshold wrong — terminating over a minor breach can put you in breach.
Injunction
A court order restraining a party from doing something that breaches the contract — for example, breaking an exclusivity or non-compete term.
Watch the clock — and the contract's own rules
- Limitation period. Under most state Limitation Laws, a simple contract claim must be filed within six years of the breach. Miss it and the claim is barred.
- Dispute-resolution clauses. Many written contracts require the parties to attempt mediation or arbitration before going to court. Ignoring that clause can get your court case stayed or dismissed.
- Notice requirements. Some contracts require formal written notice of default and a cure period before you can terminate.
The Practical Playbook
Assemble the contract and the evidence
Gather the agreement (written or the chain of messages that formed it), proof of what you performed or paid, and proof of the breach. Pin down the exact obligation broken and the loss it caused you.
Send a formal demand / notice of breach
A clear written demand — stating the term breached, the remedy you require, and a deadline — resolves a large share of contract disputes on its own. It's also often a required step before termination or suit. See our demand letter guide and template.
Try mediation before litigation
Most contract disputes are about money and continuing relationships, not principle. Mediation gets a signed, enforceable settlement in days — and if your contract has a mediation-first clause, you may be required to do this anyway.
Litigate or arbitrate only if needed
If the other side won't engage, the appropriate court (Magistrate, High Court, or the small claims track for defined money claims) or an arbitrator becomes the fallback — with a strong paper trail already built.
Why Mediation Fits Contract Disputes So Well
Court can take years and can permanently end a commercial relationship you might actually want to keep. Mediation is different: it's fast, private, and lets both sides shape a practical outcome — a revised delivery schedule, a partial refund, a payment plan, a renegotiated scope. The result is a signed settlement agreement, enforceable as a contract in its own right. For most breaches, that's a better outcome than a judgment you then have to spend more money enforcing.
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Frequently Asked Questions
Is a verbal agreement binding in Nigeria?
Yes, if it has offer, acceptance, consideration, and intention to create legal relations. The difficulty is proof, so keep messages, receipts, and witnesses. Land and certain guarantees, however, must be in writing.
What can I claim for a breach of contract?
Most commonly damages — money to put you where you'd have been if the contract was performed. Depending on the case, you may also seek specific performance, termination, or an injunction.
How long do I have to sue?
Generally six years from the breach under most state Limitation Laws. Don't sit on your claim.
Can I skip court?
Yes. A demand letter followed by mediation resolves most contract disputes faster and cheaper, and many contracts require mediation or arbitration first anyway.