Someone owes you money. Maybe it's a friend who borrowed ₦200,000 and has gone quiet. Maybe it's a business partner who hasn't paid your invoice in three months. Maybe it's a family member who promised to return a loan "after payday" — several paydays ago.
Debt recovery in Nigeria is frustrating. You don't want to sue your friend. You can't afford a lawyer retainer. And you're not sure what your options actually are.
This guide walks you through the practical steps to recover money owed to you in Nigeria — without immediately heading to court.
Types of Debt This Guide Covers
- Personal loans between friends or family members
- Business invoices that haven't been paid despite repeated follow-up
- Deposits or advance payments not returned
- Money transferred via bank or mobile banking with a clear record
- Payments agreed verbally but never made
Even informal debts — loans made on trust without a formal agreement — can be recovered through the right process, especially if you have bank transfer records or messages acknowledging the debt.
Step 1: Document Everything Before You Do Anything Else
Before taking any action, gather your evidence. This step is more important than people realize — without documentation, your claim is your word against theirs.
Collect:
- Bank transfer receipts showing money sent (amount, date, recipient)
- WhatsApp or SMS messages where the debt was acknowledged — "I'll pay you back by Friday," "Please give me one more week" are all useful
- Any written agreement, even an informal note or email exchange
- Records of previous attempts to collect — messages, calls, voice notes
Screenshot everything. Don't delete anything. In Nigerian courts and in mediation, digital evidence is admissible — and it's often decisive.
Step 2: Send a Formal Demand Letter
A demand letter is a clear, written notice to the debtor demanding payment within a specific timeframe. It's not a legal document — it's a professional, documented request that signals you're serious.
A good demand letter includes:
- The exact amount owed, in naira
- The date the debt was incurred (or the invoice date)
- A repayment deadline — 7 to 14 days is standard
- What you intend to do if the deadline passes (formal mediation, then court)
- Your bank details for the transfer
Many debts are settled at this stage. People who ignore informal messages often respond when something arrives that looks official and documents a clear deadline. You can write one yourself or use SettleMe's case-filing process, which sends a formal notice to the other party automatically.
Step 3: File for Mediation
If the demand letter is ignored, disputed, or met with empty promises, mediation is your next step — before court.
Mediation works particularly well for debt recovery because:
- It's cheaper and faster than court — significantly so
- It creates a documented, signed agreement that can be legally enforced
- The debtor is more likely to honor terms they helped negotiate
- A mediator can facilitate a realistic payment plan if the debtor genuinely can't pay in one installment
The goal isn't necessarily to win — it's to get paid. A realistic payment plan that is honored is worth more than a court judgment the debtor can't (or won't) satisfy.
What happens when you file a debt case
- You describe the debt and upload your evidence (transfer records, messages)
- We send a formal, professional invitation to the debtor — this step alone often prompts payment
- A certified mediator reviews both sides
- The mediator facilitates a resolution: full repayment, a payment plan, or formal acknowledgment
- A signed agreement is issued — enforceable as a contract
What Happens If Mediation Fails?
If the other party refuses to participate in mediation at all, or if mediation sessions don't produce an agreement, you have a clear path to court — and a stronger case for having tried:
- You have documented proof of the debt (bank records, messages)
- You have proof you attempted to resolve it out of court (your demand letter, the mediation attempt)
- The mediation transcript or records can support your court filing
Nigerian Magistrate Courts handle most personal debt claims under ₦10 million. The Small Claims procedure, available in Lagos and some other states, is faster and doesn't always require a lawyer.
Common Mistakes to Avoid
Avoid these errors
- Waiting too long. The longer you wait, the harder recovery becomes. Take action within weeks of a missed deadline, not months.
- Relying on mutual friends as intermediaries. This rarely works and usually damages more relationships than it fixes.
- Making threats you won't follow through on. Empty ultimatums reduce your credibility. If you say you'll take action, take it.
- Accepting verbal repayment promises without documentation. Every new repayment arrangement should be in writing — even a WhatsApp message saying "I agree to pay ₦50,000 on the 15th of each month" is better than nothing.
- Lending more money to someone who already owes you. Increasing your exposure before recovering the original debt compounds the problem.
A Note on Informal Loans (No Written Agreement)
Many Nigerians worry that without a formal loan document, they have no legal standing. That's not entirely true. A debt can be proven through evidence of payment (bank transfers) and acknowledgment (messages). Courts and mediators regularly handle cases built entirely on digital evidence.
That said, going forward: always record loans in writing, even informally. A WhatsApp message that says "I'm lending you ₦150,000 today, to be repaid by December 1" — agreed to in writing by both parties — creates a clear record that protects everyone.
File a debt recovery case today
SettleMe is built for exactly this situation. Describe the debt, upload your evidence, and we formally invite the other party. A certified mediator is assigned within 24 hours. Most cases resolve within 7 days.
File Your Case →₦20,000 per party · One-time flat fee