Is It Too Late to Recover a Debt in Nigeria? Time Limits Explained
By the Pandas LP team
Most people who are owed money wait. They give the debtor time, accept promises, and hope it resolves itself. That patience is understandable, but the law does not wait with them: every debt has a time limit after which a court claim can fail, however real the debt is.
What a limitation period is
A limitation period is the time within which a claim must be brought to court. After it expires, the debtor can raise the delay as a complete defence. The point of the rule is that evidence fades and people are entitled, eventually, to know a claim will not be brought.
The usual time limit for a debt
For a simple contract debt, such as a loan, an unpaid invoice, or goods supplied and not paid for, the Limitation Law of Lagos State and similar laws in other states generally allow six years from when the right to sue arose. Other kinds of claim can carry different periods, so the exact limit is always checked for the specific debt.
When the clock starts
For most debts, the clock starts when the money fell due: the date on the invoice, the agreed repayment date, or the date the goods or services should have been paid for. For a debt that is payable on demand, the right to sue can arise only when the demand is made, which is one more reason the Letter of Demand matters.
When exactly the clock started can be argued, so an older debt should be checked before money is spent chasing it.
What can change the position
In some circumstances a written acknowledgment of the debt, or a part payment, can affect how the time limit applies. Messages in which the debtor admits owing the money, and records of any payments, are therefore worth keeping for every debt, not only old ones.
What to do if the debt is getting old
- Do not keep waiting. Every month of delay uses up time that cannot be recovered.
- Gather the dates. When the money fell due, any later promises or payments, and when you last asked for it.
- Send a formal demand. A Letter of Demand puts the claim on a proper footing and starts the response period.
- Have it checked. The free debt check asks when the debt was due and flags an older debt for a lawyer to look at first, at no cost.
This guide is general information, not legal advice for your situation. Limitation questions turn on dates and documents, so a practitioner should look at an older debt before you act on it.
Common questions
How long do I have to recover a debt in Nigeria?
For a simple contract debt, such as money lent or goods and services not paid for, the Limitation Law of Lagos State and similar laws in other states generally allow six years from when the right to sue arose. Other kinds of claim can have different periods, so the exact limit is checked for each case.
When does the six years start?
Generally from when the right to sue arose, which for most debts is when the money fell due. For a debt payable on demand, the right to sue can arise when the demand is made. When exactly the clock started can be argued, which is why an older debt should be checked before anything else is done.
What if the debt is older than six years?
A claim brought after the limitation period can be defeated on that ground alone, even if the debt is real. In some circumstances a written acknowledgment of the debt or a part payment can affect the position, so an old debt is worth having checked rather than written off without a look.
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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