Lawfully Debt Recovering Procedures in Nigeria
There are lawful procedures / options to recover debts in Nigeria that person or organizations can follow to make their debt collection.
So, we concentrated on how to recover lawful business debt in Nigeria in this blog. There are many scenarios debt could arise from and there lawful procedures to follow when recovery debt. In this blog, we are considering on legitimate and lawful business debt. We will explain lawful ways a person or organization could follow to recover his/ her debt in Nigeria. Note, this is an advice.
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The following procedures can be followed to recovery debt in Nigeria.
Contact a registered Agent.
I chose this option first for several reasons, in most cases, a good agent will explore almost all other options/ steps in debt recovery in Nigeria to recover your debt. Agents have experience and most cases serves as mediator between the debtor and the creditor. Most of them use dialogue and persuasion to recover your debt. Dialogue and persuasion is always best way of debt recovery option in Nigeria as it takes less time, cost and in most cases maintain your business relationship with your debtor.
Court has the final say in debt recovery in Nigeria. One of the key issues with this option is, case in Nigeria can take long time to resolve and as a business man, you would not want your business money to be tied down while you wait for law court judgment.
Hire a Lawyer
This could look similar to the second option (Go to Court). The difference between this option and the above is you need to hire a lawyer to manage your case. Apart from courts that treat traditional matters/ cases, every other courts in Nigeria, you need to hire a lawyer or law firm in Nigeria to defend your case. Often times, lawyers acts as debt recovery agents in Nigeria.
Mediation: Alternative dispute resolution
This is another good option of lawful debt recovery in Nigeria. Alternative dispute resolution is a means of settling issues or disputes that may arise without having to sue the party to court.
Mediation is a structured negotiation between the parties with a mediator who stand in between a debtor and creditor for find a soft land that will be of best for the parties and the debt to be recovered.
Arbitration is a procedure in which a dispute is submitted voluntarily, by agreement of the parties, to one or more arbitrators who make a binding decision on the dispute. In choosing arbitration, the parties opt for a private dispute resolution procedure instead of going to court.
Arbitration is more suitable when the parties to the dispute are corporate organizations. It is advantageous because, the proceedings are done in private. It is also flexible in rules as the parties will decide the time frame for the proceedings.
The proceedings are also informal and evidence is not applicable to the proceedings unlike as is done in a courtroom.