Unpaid Invoice in Nigeria: What to Do First
By the Pandas LP team
You did the work or delivered the goods, sent the invoice, and the payment has not come. For a small business, one unpaid invoice can be the difference between a good month and a bad one. Here is the order to do things in.
1. Check what was agreed
Find the quote, purchase order, contract or messages that set out the job and the price. Check the invoice matches what was agreed, that it went to the right person or company, and what the payment terms were. A clean paper trail is most of the work.
2. Send a written reminder
A short, polite reminder by email or message, with the invoice attached, the amount and the due date, is often all it takes. Keep it in writing so there is a record. If the client replies with a promise or a reason, keep that too: a message admitting the money is owed is useful evidence.
3. Keep records of everything
Save the invoice, delivery notes, emails, WhatsApp messages, bank details shown to the client and any part payments. If the matter goes further, these are what prove the debt.
4. Send a formal Letter of Demand
If reminders are ignored, the next step is a Letter of Demand: a formal letter stating the exact amount, a deadline to pay and what happens if the client does not. A letter reviewed and signed by a licensed practitioner on firm letterhead costs from ₦10,000 with Pandas LP, with follow-ups on Day 7 and Day 14 included.
5. Go to the Small Claims Court if needed
If the deadline passes without payment, a claim can be filed at the Small Claims Court for amounts up to ₦5,000,000 in Lagos. The procedure is simplified, and a company can be sued in its own name.
What not to do
- Do not shame the client publicly. Posting accusations online can expose you to a defamation claim.
- Do not threaten or harass. It weakens your position and can create problems of its own.
- Do not let it drift. Debts have time limits, and evidence is easier to gather while it is fresh.
Not sure the invoice is worth chasing? The free debt check takes about a minute and shows how strong the claim looks and what it would cost.
Common questions
How long should I wait before chasing an unpaid invoice?
There is no fixed rule, but a written reminder soon after the due date, followed by a formal Letter of Demand if the reminder is ignored, keeps the claim moving and builds a record. Waiting months without anything in writing makes recovery harder.
Can I take a business to the Small Claims Court over an invoice?
Yes, if the amount is within the court’s limit, which is ₦5,000,000 in Lagos. A company can be sued in its own name, and the claim must be served on the company itself, not on a director personally.
Can I post about the client online or keep their goods?
Avoid both. Public accusations can expose you to a defamation claim, and holding on to property without a legal basis can create a claim against you. The lawful route is a written demand and then the court.
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.
Take the free debt check →