How Much Do Debt Recovery Companies Charge in Nigeria?

Most debt recovery firms in Nigeria do not publish their prices: they quote case by case, usually as a percentage of what they recover, a fixed fee per stage, or a mix of both. This guide explains each pricing model, the extra costs to budget for, and what to ask before you agree to anything.

What are the main ways debt recovery is priced?

• Percentage of what is recovered (often called "no recovery, no fee"). You pay nothing up front, and the firm keeps an agreed share of whatever it collects. Simple, but on a large debt the share can cost more than a fixed fee would, and you should check what happens to the fee if you settle directly with the debtor.
• Fixed fee per stage. A set price for each step, for example a letter of demand, then a court filing. You know the cost before you start, whatever the size of the debt.
• Retainer. A monthly or yearly fee for ongoing work, usually for businesses or lenders with many accounts.
• Hybrid. A smaller fixed fee to start, plus a lower percentage of what is recovered.

What other costs should you expect?

• Court filing fees, if the matter goes to court. These are set by the court and paid to the court, not to the firm.
• Service costs, if the letter or court papers have to be delivered by hand or by a court bailiff.
• Your own time: gathering invoices, contracts and messages, which every option needs.

Which pricing model suits which debt?

• One small or medium debt: a fixed fee usually costs less overall, because the price does not grow with the amount.
• A large debt you may never recover: a percentage model shares the risk, at the price of a bigger share if it succeeds.
• Many accounts, such as a lender's or a supplier's ledger: a retainer or a prepaid wallet with per-account fees keeps the cost per account low.

Example of a fixed-fee model: at Pandas LP, a letter of demand reviewed and signed by a licensed practitioner costs ₦10,000, or ₦25,000 if we serve it, with reminders on days 7, 10 and 14 included. Court fees, if needed, are charged at cost. See our fixed fees.

What should you ask before you sign?

• Exactly what is included, and what costs extra.
• Whether the fee is charged even if nothing is recovered, and what happens if you settle directly with the debtor.
• Who signs the letters, and whether a licensed legal practitioner is involved.
• How they contact debtors. Harassment, threats, public shaming, or using the police or EFCC for an ordinary debt are not lawful ways to recover money.
• Whether you get a written agreement and regular updates on every account.

Deciding who to use? Read debt recovery company or lawyer: what a Nigerian business should use, or start from our free letter of demand sample. Court-stage rules for Lagos are in the Lagos State Small Claims Court Practice Directions.