Can a Company Be Sued in the Small Claims Court in Nigeria?
Reviewed by Adebayo Sobayo & Adeyemo Adedeji, Legal Practitioner
Debt recovery clients often assume the Small Claims Court is only for disputes between individuals. It isn't — a registered company can be sued there too, provided the claim itself is the kind of simple, liquidated sum the Small Claims track exists for.
A company is its own legal entity
A registered company has a separate legal personality from its directors, shareholders, and staff. That cuts both ways: the company can be sued in its own name for what it owes, and — outside genuinely unusual circumstances — a director or employee generally isn't personally on the hook for the company's debts just because they signed an invoice or ran the transaction. The claim and the eventual judgment belong against the company itself.
What that means for serving a demand or a claim
A Letter of Demand addressed to a company should go to the company at its registered address, not to a director's personal address or a staff member's inbox — though sending it to whoever actually handles the account is sensible practice alongside the formal address. Get the company's exact registered name right: the name on its CAC certificate, not a trading name, a shop sign, or a shortened version people use in conversation. A judgment obtained against the wrong name can be difficult or impossible to enforce.
The claim itself works the same way
Once the response period on the Letter of Demand has passed without payment, a claim can be filed at the Small Claims Court naming the company as defendant, the same way it would name an individual debtor — provided the claim is still a simple, liquidated sum under the state's limit. If liability is genuinely disputed, or the sum is above the limit, the claim goes through the Magistrate Court's ordinary civil process instead, the distinction covered in our guide to Small Claims vs. Magistrate Court.
What to have ready before pursuing a company debtor
- The company's exact registered name and registered address
- The invoice, contract, or other record showing what's owed and why
- Any prior communication about the debt, including who you dealt with at the company
- The company's CAC registration details, if you have them, to confirm the correct legal name
How Pandas LP helps
Our Debt Recovery Agent drafts and serves your Letter of Demand whether the debtor is an individual or a company, and files at the Small Claims Court if it's ignored — from ₦10,000.
This article is general information about Nigerian debt recovery practice and is not legal advice on your specific claim.
Common questions
Can I sue a company, not just an individual, in the Small Claims Court?
Yes. The Small Claims Court's eligibility turns on the nature and size of the claim — a simple, liquidated sum under the state's limit — not on whether the debtor is an individual or a registered company.
Do I serve the Letter of Demand on the company or on a director personally?
On the company itself, at its registered address, rather than on a director or employee personally — unless the facts genuinely support pursuing an individual directly, which is a different and less common claim. A company is a separate legal entity from the people who run it, and the demand and any claim should be addressed to the entity that actually owes the money.
What if the company doesn't respond to a Letter of Demand?
The same process applies as with an individual debtor: if payment isn't made within the response period, a claim can be filed at the Small Claims Court, naming the company as the defendant.
Can I sue a business by its trading name instead of its registered company name?
It's safer to use the exact registered name — the one on its CAC certificate — rather than a trading or shop-front name, since a claim and any resulting judgment need to be enforceable against the correct legal entity. Confirming a debtor's registered name before filing is worth the extra step.
Owed money? Check the claim first.
Seven quick questions show how strong a claim looks, the sensible next step and what it would cost. A Letter of Demand, reviewed and signed by a licensed practitioner, starts at ₦10,000.
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