Recovering outstanding debts in Nigeria can be complex, time-consuming, and challenging, especially when informal recovery efforts fail. Many businesses, financial institutions, and individuals turn to professional debt recovery practitioners to help navigate this process efficiently and within the confines of the law.
At Nedellum Partners, we provide structured debt recovery services in Lagos and across Nigeria, assisting clients to reclaim outstanding amounts while complying with all applicable laws and ethical standards. Our work is guided by Nigeria’s legal framework, industry best practices, and professional ethics.
Understanding Debt Recovery in Nigeria
Debt recovery involves taking lawful steps to recover sums owed by a debtor to a creditor. In many cases, creditors attempt recovery themselves before engaging professional assistance. Professional debt recovery support can improve efficiency, ensure legal compliance, and reduce the burden on the creditor.
Our team is experienced in managing debt recovery matters across various industries — from commercial transactions to financial services — with an emphasis on resolving matters efficiently.
Information Needed for Debt Recovery
To assess and handle a debt recovery matter effectively, certain details are essential, including:
• The debtor’s name and address
• The amount owed
• How long the debt has been outstanding
• Copies of agreements or contracts
• Any correspondence acknowledging the debt
• Any disputes or claims from the debtor (e.g., product quality issues, delivery delays) — whether valid or not — so that they can be addressed appropriately
Providing these details from the outset helps ensure that the process is both accurate and efficient.
Debt Recovery Under the STMA Act, 2017
Where a credit transaction falls under the Secured Transactions in Movable Assets Act, 2017, the Act provides specific recovery mechanisms. For example, if a borrower defaults, the creditor may issue written notice of default and intention to repossess collateral. Ten days after such notice, repossession can occur either:
- Through judicial processes, or
- Without court action if the borrower has consented in the security agreement
Repossession without judicial process may be supported by the Nigeria Police upon presentation of the relevant documentation. The sale of any collateral must comply with the Act’s provisions, respecting the borrower’s and other creditors’ rights.
Our Debt Recovery Process
At Nedellum Partners, debt recovery is handled methodically to improve the likelihood of success. Our typical process includes:
- Initial Consultation & Agreement – Discussing the matter with the client (virtually or in person) and agreeing on the appropriate approach.
- Demand Notice – Issuing formal written communication to the debtor.
- Follow-up Communication – Telephone calls and further correspondence to negotiate repayment.
- Deadline Notice – Providing a final opportunity for repayment before escalation.
- Client Consent for Legal Action – Proceeding to litigation only with the client’s written approval.
- Court Proceedings – Where necessary, instituting legal action to obtain judgment.
- Enforcement – Executing the judgment to recover the debt.
This process may be adapted to suit each matter’s unique facts and applicable laws.
Scope of Services
Our debt recovery-related services in Lagos and across Nigeria include:
- Negotiations for settlement
- Asset tracing and recovery
- Enforcement of security interests
- Debt restructuring arrangements
- Review of credit and security documentation for lenders and borrowers
Why Clients Work With Us
• Nationwide Reach – We manage matters across all states in Nigeria.
• Tailored Strategies – Recovery approaches are designed for each case’s unique circumstances.
• Ethical Practice – All recovery efforts are conducted in compliance with Nigerian law and professional conduct rules.
• Experience Across Sectors – Our team includes legal practitioners and professionals with backgrounds in finance, credit management, and business advisory.
If you require assistance with a debt recovery matter in Lagos or elsewhere in Nigeria, you may contact Nedellum Partners for a confidential consultation.
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