Small Claims Court Lagos Rules: A Guide for Businesses

The rules of the Lagos Small Claims Court are set by the Lagos State Practice Direction on Small Claims 2023, issued by the Chief Judge of Lagos State. For a business, the key rules are: claims of up to ₦5,000,000 excluding interest and costs, a letter of demand first, a company represented by its own officer, and a target of 60 days from filing to judgment.

Who can bring a claim?

Any person or business, if they or the debtor lives or carries on business in Lagos State, or the debt arose wholly or partly in Lagos, and the claim is for a fixed sum of money of not more than ₦5,000,000, excluding interest and costs (Article 2(1)).

What must happen before you file?

You must have served a letter of demand on the debtor, as in Form SCA 1 (Article 2(1)). The form gives the debtor fourteen (14) days from receipt to pay. Our letter of demand sample follows it.

Who represents a company?

Parties may represent themselves. A registered company or partnership can be represented by a partner, the company secretary or another principal officer (Article 11).

What are the key deadlines?

• Service of the summons: within 7 days of filing, by the court’s Sheriff (Article 6).
• Affidavit of service: within 2 days of service (Article 6).
• The debtor’s defence, admission or counterclaim: 6 days from service under Article 7(1); the printed Form SCA 5 says 7 days, so go by the date stated on the summons.
• Your reply to a defence or counterclaim: within 5 days of service (Article 8).
• Amicable settlement: up to 7 days from the first appearance (Article 10(1)).
• The hearing: finished within 30 days of the first hearing date, including the settlement period (Article 10).
• Judgment: within 14 days of the end of the hearing, and the whole case within 60 days of filing (Article 13).
• Appeal: notice of appeal within 14 days of judgment, with the leave the Magistrates’ Courts Law requires (Article 15).

What if the debtor counterclaims?

A debtor can counterclaim, including for more than ₦5,000,000 in some cases, with limits on what the Small Claims Court can award on a larger counterclaim (Article 8). You may reply within 5 days.

What if someone doesn’t turn up?

If you appear and the debtor does not, and service is proved, the court hears your claim and gives judgment as far as you prove it. If neither party appears, or only the debtor appears without a counterclaim, the claim is struck out and cannot be re-listed (Article 9).

How are evidence and hearings handled?

Parties give evidence themselves, tender documents and may call witnesses, and the court may depart from the strict rules of evidence in the interest of justice (Article 12). Each party exchanges a list of witnesses at or before the first appearance, and hearings may be held by video link (Article 10).

What happens after judgment?

The debtor must pay the judgment sum at once. If not, it is enforced like any Magistrates’ Court order for payment of money (Article 14). See enforcing a small claims judgment.

For businesses with several unpaid accounts, Pandas LP prepares the letter of demand and the Small Claims forms for each account at fixed fees, with a licensed practitioner reviewing every document. Debt recovery for businesses.

Need the forms? Read the Lagos Small Claims Court forms explained.

Source: Lagos State Practice Direction on Small Claims 2023 (copy with PEBEC edits, December 2025), Articles 1 to 17.