By Timileyin Ilesanmi
A debt does not become unenforceable simply because the debtor ignores calls, denies the obligation, or promises payment that never comes. Nigerian law provides a structured route from demand to judgment and, where necessary, enforcement against the debtor’s money or property.
The starting point is to treat the claim as a legal claim, not merely a personal dispute. Preserve the contract, invoices, delivery notes, bank transfers, receipts, emails, and messages showing the debt; then act promptly, because delay can bar the claim.
What remedies may creditors lawfully pursue when a debtor fails to pay a liquidated debt? A liquidated debt is a specific sum due under a contract, capable of being ascertained by arithmetic without further investigation. It may arise from a loan, unpaid invoice, supply contract, services rendered, rent, or an acknowledged obligation.
The creditor cannot lawfully seize the debtor’s property, detain the debtor, threaten violence, or publicly shame them to force payment. Those steps may create separate civil and criminal liability. The lawful route is demand, negotiation or settlement, court action where necessary, and enforcement of any judgment obtained.
Establish the debt
Before suing, the creditor must establish a legally enforceable obligation. The essential questions are whether money is due, when it became due, in what amount, and whether the debtor has a valid defence such as payment, set-off, fraud, duress, or failure of consideration.
A written contract is ideal, but it is not always indispensable. Invoices, purchase orders, delivery notes, bank records, emails, and WhatsApp messages may together establish the agreement and the debt. Under section 84 of the Evidence Act 2011, electronic records may be admissible where the statutory conditions for computer-generated evidence are satisfied.
Time is critical. Under section 8(1)(a) of the Limitation Law of Lagos State, Cap. L84, Laws of Lagos State 2015, an action on a simple contract must generally be brought within six years of accrual. A written, signed acknowledgement of the debt may revive or extend the right of action; the Supreme Court, in Petroleum Products Marketing Co. Ltd v Masters Maritime Ltd (2025) LPELR-83147(SC), has recognised that an acknowledgement in writing signed by the liable party can revive the right to sue.
Demand payment first
The first formal step is usually a lawyer’s demand letter. It should identify the parties, state the contractual basis of the debt, quantify the amount owed, demand payment within a stated period, and warn of legal action if payment is not made.
A demand letter often produces settlement without litigation. It also helps show that the debtor was put on notice and may support a claim for pre-judgment and post-judgment interest, where the contract or applicable law permits it. If the debtor disputes the debt, the response may reveal the defence early and assist the creditor in assessing the strength of the case.
Where the debtor admits the debt but cannot pay immediately, a written settlement agreement or payment plan is preferable to an informal promise. It should state the total debt, instalment amounts, payment dates, default consequences, and whether interest continues to run.
Going to court
If demand fails, the creditor may sue for the debt. Where the claim is for a fixed, undisputed sum and the defendant appears to have no real defence, summary judgment or undefended-list procedure may avoid a full trial. As the court has reiterated in Rodney Trevor Hadlow v Coastal Energy Logistics Ltd and Captain Falilou Digne v Oil & Industrial Services Ltd & Anor, summary judgment is designed for liquidated money demands where the defendant has no genuine defence or only a sham defence.
In Nishizawa Ltd. v. Jethwani (1984) 12 SC 234, the Supreme Court explained the purpose of summary judgment: it enables a plaintiff with a clear claim to obtain judgment without the delay of a full trial where the defendant has no defence. Nigerian courts continue to apply that principle to liquidated money demands.
If the debtor has a genuine triable issue, the matter will proceed to full trial. The creditor should plead the contract, performance, amount due, demand, refusal to pay, and loss or interest claimed. Evidence should be organised around each element of the claim.
Enforcing payment
Winning judgment is not the same as receiving money. If the debtor still refuses to pay, the creditor may seek enforcement. One of the most effective methods is garnishee proceedings under sections 83 to 92 of the Sheriffs and Civil Process Act, which allow a judgment creditor to attach money owed to the judgment debtor by a third party, usually a bank.
The court first makes a garnishee order nisi, directing the bank to show cause why the debtor’s funds should not be applied to satisfy the judgment. If the bank does not dispute liability or show sufficient cause, the court may make an order absolute, requiring payment of the judgment debt from the attached funds.
Other enforcement options include a writ of fieri facias to seize and sell the debtor’s movable property, a judgment-debtor summons to examine the debtor about assets, and, in appropriate cases, attachment of rent or other debts due to the debtor. The choice depends on the debtor’s assets, the nature of the debt, and the court’s procedure.
Final note
Do not wait until the debtor becomes insolvent or disappears. Review the limitation period, preserve all records, issue a clear demand, and consider settlement where it protects recovery. If litigation becomes necessary, focus on whether the debt is liquidated, whether the debtor has a genuine defence, and what assets may be available for enforcement.
A creditor’s strongest position is usually built before the dispute begins: written contracts, invoices, proof of delivery, bank records, and clear communication. Where those exist, the law provides practical remedies to convert an unpaid debt into enforceable payment.