NAVIGATING DEBT RECOVERY IN NIGERIAN COURTS: A COMPREHENSIVE GUIDE TO SAMPLE AFFIDAVITS

Introduction: The Intricacies of Debt and the Imperative of Recovery

Debt, in its simplest form, is a financial obligation owed by one party (the debtor) to another (the creditor). While often viewed negatively, debt is an integral part of commerce and personal finance, facilitating transactions, investments, and economic growth. From a simple loan between friends to complex commercial credit facilities, debt underpins countless agreements. However, when these obligations are not met, the creditor faces a challenge: how to recover what is rightfully theirs?

In Nigeria, debt recovery is not merely a matter of persistent calls or demands; it’s a structured legal process governed by specific laws and court procedures. While amicable settlements, negotiation, and mediation are always preferred first steps, there comes a point where judicial intervention becomes necessary. This is where the Nigerian court system steps in, and central to successful litigation for debt recovery is a crucial document: the affidavit.

This comprehensive guide will delve deep into the world of affidavits for debt recovery in Nigerian courts. We will explore its significance, dissect its components, provide a sample, and illuminate the entire process from demand letters to the enforcement of judgments. Our aim is to provide a truly insightful, understandable, and well-articulated resource that covers all aspects of this critical legal tool, leaving no stone unturned.

Interactive Question: Have you ever been owed money that wasn’t paid back? What was your initial reaction and how did you try to recover it? Share your experiences in the comments below!

Understanding the Landscape: Debt Recovery in Nigeria

Before we dive into the specifics of an affidavit, it’s essential to grasp the broader context of debt recovery in Nigeria. It’s a legal minefield that requires careful navigation.

Types of Debt

Debt can manifest in various forms, each with its unique characteristics and implications for recovery:

Simple Contracts: These are common debts arising from agreements not formally documented by deeds, such as goods sold on credit, services rendered without immediate payment, or informal loans.
Liquidated Debts: This refers to a specific, ascertainable sum of money owed. The amount is not subject to estimation or dispute regarding its quantum. Examples include an unpaid invoice, a fixed loan amount, or a judgment debt. These are generally easier to recover through summary procedures.
Unliquidated Debts/Damages: These are claims where the exact amount owed is yet to be determined by the court, often involving breach of contract where the extent of loss needs to be proven (e.g., compensation for emotional distress, loss of profit). Affidavits in such cases will support the claim for damages, not just the debt itself.
Secured Debts: Debts backed by collateral (e.g., a mortgage, a charge over assets). In case of default, the creditor can resort to the collateral to recover the debt.
Unsecured Debts: Debts without any collateral. Recovery solely relies on the debtor’s ability to pay or court-ordered enforcement against their general assets.

The Legal Framework Guiding Debt Recovery

Debt recovery in Nigeria is not a free-for-all; it’s governed by a robust legal framework. Key legislations and rules include:

The Constitution of the Federal Republic of Nigeria: While not directly a debt recovery law, it guarantees fundamental rights, including the right to fair hearing and dignity, which must be respected during debt recovery processes. This is why self-help and harassment are strictly prohibited.
Contract Law: Forms the bedrock of most debt claims. The Nigerian Contract Act and common law principles define the validity, enforceability, and breach of agreements, including loan agreements.
Companies and Allied Matters Act (CAMA) 2020: Relevant for debts owed by corporate bodies. It provides mechanisms for winding-up proceedings against insolvent companies.
Sheriffs and Civil Process Act: Governs the enforcement of court judgments, including debt recovery judgments, across different states in Nigeria.
Rules of Court (e.g., High Court Civil Procedure Rules of various states, Federal High Court Civil Procedure Rules): These rules dictate the procedural steps for initiating and prosecuting debt recovery actions, including the use of affidavits, summary judgment procedures, and undefended list procedures.
Limitation Laws (e.g., Limitation Laws of various states): Crucially, these laws set time limits within which a debt recovery action must be filed. For simple contracts, this is typically six years from the date the cause of action arose. Failure to act within this period renders the debt “statute-barred” and irrecoverable in court.
Bankruptcy Act (for individuals) and Insolvency Regulations (under CAMA for companies): These laws deal with situations where a debtor is unable to pay their debts and provide a framework for the distribution of their assets among creditors.

Interactive Question: Did you know there’s a time limit to recover a debt in Nigeria? How does knowing about the “statute-barred” rule impact your understanding of debt recovery?

Initial Steps Before Litigation

Before rushing to court, credible debt recovery in Nigeria typically involves a series of pre-action steps, often mandated by court rules or considered good practice:

Demand Letter: This is a formal, written notice sent by the creditor or their lawyer to the debtor, detailing the debt, how it arose, the amount owed, and a deadline for payment. It usually warns of legal action if payment is not made. This is a crucial piece of evidence in court.
Negotiation and Mediation: Encouraging amicable settlement through direct negotiation or engaging a neutral third-party mediator can save time, costs, and preserve relationships. Many court rules now require parties to explore Alternative Dispute Resolution (ADR) before litigation.

Interactive Scenario: Imagine you’re owed N500,000 by a former business partner. You’ve called them repeatedly, but they keep making excuses. What would be your very next step before considering legal action? (Think about the steps just discussed).

The Affidavit: Your Voice in Court

At the heart of many court processes, especially those seeking accelerated judgments like debt recovery, lies the affidavit.

What is an Affidavit?

In Nigerian law, an affidavit is a written statement of facts, voluntarily made by a person (the “deponent” or “affiant”), and sworn to or affirmed before an officer authorized by law to administer oaths (such as a Notary Public, a Judge, a Magistrate, or a Commissioner for Oaths).

Think of it as your sworn testimony presented in writing to the court. Unlike oral testimony given during a trial, an affidavit is prepared in advance and submitted as part of your legal documents.

Why is an Affidavit Crucial in Debt Recovery?

The affidavit plays a pivotal role in debt recovery cases, particularly in procedures designed for speedy resolution:

Summary Judgment Proceedings: This procedure allows a creditor to obtain judgment quickly where there is no genuine defense to the claim for a liquidated sum. The application for summary judgment must be supported by an affidavit verifying the facts of the debt and stating the deponent’s belief that the defendant has no defense on the merits.
Undefended List Procedure: Similar to summary judgment, this procedure is used for liquidated money demands. The claim is entered on the “undefended list” if the court is satisfied, based on the supporting affidavit, that the defendant has no defense.
Interlocutory Applications: Even in regular debt recovery suits, affidavits are used to support various applications made during the course of the litigation, such as applications for interim injunctions to freeze assets, or applications for judgment on admission.
Establishing Facts: An affidavit presents the court with the factual basis of your claim. It lays out chronologically and systematically how the debt arose, the amount owed, the efforts made to recover it, and why the debtor is liable.
Evidence: Once sworn, the contents of an affidavit are treated as evidence before the court. If unchallenged by a counter-affidavit from the opposing party, the facts deposed to in the affidavit are generally deemed admitted and accepted as true by the court.
Pleadings: The affidavit, especially in summary proceedings, serves as both evidence and a form of pleading, outlining the core of your case.

Interactive Question: If you’re a debtor and receive a court summons supported by an affidavit claiming you owe money, why is it absolutely critical to file a counter-affidavit? What could happen if you don’t?

Key Elements of a Valid Affidavit for Debt Recovery

A valid affidavit must adhere to specific legal requirements to be admissible and effective in court. These include:

Title of the Court: Clearly states the name of the court where the affidavit is being filed (e.g., “IN THE HIGH COURT OF LAGOS STATE,” “IN THE FEDERAL HIGH COURT”).
Parties to the Suit: Identifies the Plaintiff (Creditor) and Defendant (Debtor) with their full names and relevant details.
Suit Number: The unique identifying number assigned to the case by the court registry. This is usually left blank for initial filing and filled in by the registry.
Deponent’s Full Details: The person making the oath (the deponent) must state their full name, address, occupation, and nationality.
Statement of Oath: A declaration that the deponent is swearing to the truth of the contents. Common phrasing includes: “I, [Deponent’s Name], Male/Female, Christian/Muslim, Nigerian Citizen, of [Address], do hereby make oath and state as follows:”
Chronological and Factual Narration: The core of the affidavit. It must present a clear, concise, and chronological account of the events leading to the debt. This includes:
- How the Debt Arose: Details of the contract, agreement, loan, goods supplied, or services rendered.
- Date and Amount: Precise dates of transactions and the exact sum owed.
- Terms of Agreement: Any specific terms, such as repayment schedule, interest rates, or penalties for default.
- Efforts Made to Recover: Demand letters sent, phone calls, meetings, or any other attempts to secure payment. Attach copies of demand letters, invoices, and payment reminders as exhibits.
- Debtor’s Default: How and when the debtor failed to honor their obligation.
- Outstanding Sum: The precise amount currently due.
- Belief of No Defence: In summary judgment or undefended list procedures, the deponent must state their belief that the defendant has no reasonable defence to the claim.
Paragraphs and Numbering: Each distinct fact or point must be stated in a separate, consecutively numbered paragraph.
Exhibits: All relevant documents supporting the facts deposed to must be annexed as exhibits. These include:
- Loan agreements, contracts, or memoranda of understanding.
- Invoices, delivery notes, or statements of account.
- Demand letters and any responses.
- Dishonored cheques (if applicable).
- Any other communication (emails, text messages, etc.) proving the debt.
- Each exhibit must be properly marked (e.g., “Exhibit A,” “Exhibit B,” and initialed by the Commissioner for Oaths).
Statement of Truth: A concluding statement affirming the truthfulness of the contents, often phrased as: “That I make this affidavit in good faith, conscientiously believing the contents to be true and correct and in accordance with the Oaths Act/Law¹ of [State].”
Deponent’s Signature: The deponent signs the affidavit.
Jurat: This is the attestation by the Commissioner for Oaths or other authorized officer. It specifies where and when the affidavit was sworn. It usually includes:
- “SWORN TO AT THE REGISTRY”
- “THIS ____ DAY OF ________, 20“
- “BEFORE ME”
- “COMMISSIONER FOR OATHS” (with official stamp and signature).

Crucial Note on Specificity: General statements like “The defendant owes me money” are insufficient. The affidavit must provide definite facts that logically lead to the conclusion that the debt is owed and there is no reasonable defense. As one Nigerian court famously put it, “It is not enough to swear, ‘I say I owe the man nothing.’ Doubtless, if it was true, that you owed the man nothing as you swear, that would be a good defence. But that is not enough. You must satisfy the Judge that there is reasonable ground for saying so.”²

Interactive Question: If you were drafting an affidavit for debt recovery, what three documents would you absolutely make sure to attach as exhibits, and why?

Sample Affidavit for Debt Recovery in Nigerian Court

This sample affidavit is for illustrative purposes only and should be adapted to the specific facts of each case. It is highly recommended to consult with a legal practitioner for drafting and filing an affidavit.

IN THE HIGH COURT OF [STATE NAME]

IN THE [JUDICIAL DIVISION/AREA] JUDICIAL DIVISION

HOLDEN AT [CITY/TOWN]

SUIT NO: [To be filled by Court Registry]

BETWEEN:

MR. JOHN DOE (Trading as John Doe Enterprises)

(Creditor/Plaintiff)

AND

MR. RICHARD ROE (Trading as Roe Ventures Limited)

(Debtor/Defendant)

AFFIDAVIT IN SUPPORT OF APPLICATION FOR SUMMARY JUDGMENT

I, JOHN DOE, Male, Adult, Christian, Nigerian Citizen, Businessman, residing at No. 15, Adeola Odeku Street, Victoria Island, Lagos State, do hereby make oath and state as follows:

That I am the Plaintiff in this suit and the Managing Director of John Doe Enterprises, a business duly registered under the laws of the Federal Republic of Nigeria. As such, I am conversant with the facts deposed to herein.
That the Defendant, Mr. Richard Roe, is known to me as the Managing Director of Roe Ventures Limited, with whom my business has had commercial dealings.
That sometime in [Date, e.g., January 2024], the Defendant approached me and my business, John Doe Enterprises, with a request to supply a consignment of [Specify Goods/Services, e.g., 500 units of high-grade industrial machinery] on credit.
That after due consideration, my business agreed to supply the said [Goods/Services] to the Defendant on the express understanding that payment would be made within [Number] days of delivery. A formal written agreement was executed between John Doe Enterprises and Roe Ventures Limited on [Date of Agreement], clearly outlining the terms of supply, payment schedule, and total cost of Naira [Amount in words] (N[Amount in figures]). A copy of the said Agreement is hereby annexed and marked as Exhibit ‘JD1’.
That pursuant to the said agreement, John Doe Enterprises delivered the [Goods/Services] to the Defendant’s premises at [Debtor’s Address] on [Date of Delivery]. The Defendant’s representative, Mr. Richard Roe himself, acknowledged receipt of the goods by signing the Delivery Note. A copy of the Delivery Note is hereby annexed and marked as Exhibit ‘JD2’.
That upon delivery, an invoice for the sum of Naira [Amount in words] (N[Amount in figures]) was issued to the Defendant on [Date of Invoice], specifying the payment due date as [Due Date]. A copy of the Invoice is hereby annexed and marked as Exhibit ‘JD3’.
That the Defendant failed, refused, and neglected to pay the said sum of Naira [Amount in words] (N[Amount in figures]) on the due date, or at all.
That upon the Defendant’s default, I caused my solicitors to issue a formal Letter of Demand to the Defendant on [Date of Demand Letter], demanding payment of the outstanding sum within [Number] days. A copy of the Demand Letter dated [Date] is hereby annexed and marked as Exhibit ‘JD4’.
That despite receiving the Demand Letter, the Defendant failed, refused, and neglected to pay the outstanding sum. Instead, he made several unfulfilled promises to pay, including a promise on [Specific Date] during a phone call where he assured me the payment would be made by [New Promised Date], which he also failed to honor.
That as at the date of swearing to this affidavit, the sum of Naira [Amount in words] (N[Amount in figures]) remains outstanding, due, and unpaid by the Defendant to John Doe Enterprises.
That the Defendant has no reasonable defence whatsoever to this action for the recovery of the liquidated sum owed.
That it is in the interest of justice that this application for summary judgment be granted.
That I make this affidavit in good faith, conscientiously believing the contents to be true and correct and in accordance with the Oaths³ Law of Lagos State.

[Signature of Deponent]

JOHN DOE

SWORN TO AT THE REGISTRY

HIGH COURT OF LAGOS STATE

HOLDEN AT IKEJA

THIS ____ DAY OF ________, 20

BEFORE ME

COMMISSIONER FOR OATHS

(Name and Stamp of Commissioner for Oaths)

Interactive Pause: Take a moment to review the sample affidavit. Do you notice how each paragraph builds the story logically and refers to specific exhibits? This structure is key to a compelling affidavit.

The Debt Recovery Process in Court: A Step-by-Step Walkthrough

Now that we understand the affidavit, let’s place it within the larger context of a court-based debt recovery process in Nigeria.

1. Pre-Action Protocol Compliance (Demand Letters & ADR)

As discussed, demand letters and attempts at amicable settlement are often prerequisites before litigation. Many court rules emphasize adherence to pre-action protocols.

2. Filing the Originating Process

If pre-action attempts fail, the creditor (now the Plaintiff) commences a formal action in court. The choice of court depends on the amount of debt and the nature of the parties (individuals, companies, or federal entities):

Magistrate Courts: For smaller liquidated sums, jurisdiction varies by state.
State High Courts: General jurisdiction for civil matters, including most debt recovery cases.
Federal High Court: Jurisdiction over specific matters like banking, maritime, and corporate issues, or where one of the parties is a federal government agency.

The most common originating processes for debt recovery are:

Writ of Summons: This is the general method for commencing actions, particularly where there might be a dispute of facts or an unliquidated claim. It is accompanied by a Statement of Claim, Witness Statements on Oath (which are essentially affidavits by witnesses), and list of documents.
Undefended List Procedure: Used for liquidated money demands where the plaintiff believes there is no defense. The Writ of Summons is specifically marked “Undefended List,” and it must be supported by an affidavit verifying the debt and stating the belief of no defense.
Summary Judgment Procedure: This procedure, often initiated by a Motion for Summary Judgment, allows the court to enter judgment swiftly if the defendant cannot show a credible defense to a liquidated sum. It is supported by a robust affidavit, along with a Statement of Claim.

3. Service of Process

Once filed, the originating process (Writ of Summons, with accompanying documents and the affidavit) must be formally served on the Defendant. Proper service is crucial for the court to acquire jurisdiction over the defendant.

4. Defendant’s Response

Upon receiving the court documents:

Undefended List: If the defendant intends to defend, they must file a Notice of Intention to Defend and a Counter-Affidavit within the stipulated time, disclosing a defense on the merits. If no defense is disclosed, or no counter-affidavit is filed, the court may enter judgment for the plaintiff.
Summary Judgment: The defendant must file a Counter-Affidavit demonstrating that there is a genuine issue to be tried and that they have a good defense to the claim.
General Writ of Summons: The defendant files a Statement of Defence, Counter-Claim (if any), Witness Statements on Oath, and list of documents.

5. Hearing/Trial

Undefended List/Summary Judgment: If the defendant files a counter-affidavit, the court will consider the affidavits of both parties to determine if there is a genuine dispute. If no credible defense is shown, the court will enter judgment for the plaintiff without a full trial. If a genuine issue is raised, the matter may be transferred to the general cause list for a full trial.
General Writ of Summons: If the case proceeds to a full trial, witnesses will be called to give oral testimony, and cross-examination will occur. The affidavits previously filed as “witness statements on oath” will be adopted by the witnesses in court.

6. Judgment

If the court finds in favor of the creditor, it will deliver a judgment ordering the debtor to pay the outstanding sum. The judgment will also specify any interest and costs awarded.

7. Enforcement of Judgment

Obtaining a judgment is one thing; enforcing it is another. If the debtor still refuses to pay, the creditor can initiate various enforcement proceedings:

Writ of Fieri Facias (Fi. Fa.): Allows the seizure and sale of the debtor’s movable and immovable property to satisfy the judgment debt.
Garnishee Proceedings: A highly effective method where the court orders a third party (often a bank) holding money for the debtor to pay it directly to the judgment creditor. This involves an ex parte application for a Garnishee Order Nisi (initial order), followed by a Garnishee Order Absolute (final order) if no sufficient cause is shown against it. Affidavits are crucial in supporting these applications.
Judgment Summons: A court order compelling the judgment debtor to appear in court to disclose their means of satisfying the judgment. Failure to comply can lead to committal to prison for contempt.
Winding-up Proceedings (for companies): Under CAMA, if a company cannot pay its debts, a creditor can petition the court to wind it up, leading to the liquidation of its assets to pay creditors.
Bankruptcy Proceedings (for individuals): Under the Bankruptcy Act, a creditor can initiate proceedings to declare an individual debtor bankrupt, leading to the management and distribution of their assets.

Interactive Question: If you’ve just secured a judgment for N2 million against a debtor who you suspect has funds in their bank account, which enforcement method would you pursue first, and why?

Common Pitfalls and Blind Spots to Avoid

Navigating debt recovery can be complex. Be aware of these common pitfalls:

Lack of Proper Documentation: This is perhaps the biggest pitfall. Without clear contracts, invoices, demand letters, and proof of delivery/service, your case is weak. “He said, she said” rarely wins in court.
Statute-Barred Debts: Failing to institute legal action within the limitation period (usually 6 years for simple contracts) will result in your case being dismissed. Time is of the essence.
Resorting to Self-Help or Harassment: Never resort to threats, intimidation, or public shaming. It is illegal and can lead to counter-suits for fundamental human rights violations.
Engaging the Police: The Nigerian Police Force is not a debt recovery agency. Involving them in civil debt matters is unlawful and will not yield positive results in court.
Insufficient Detail in Affidavit: A vague or poorly drafted affidavit will likely lead to the dismissal of your application, especially in summary judgment or undefended list procedures. Facts must be specific, relevant, and supported by exhibits.
Failure to Serve Process Properly: If the defendant is not properly served, the court will not have jurisdiction, and any proceedings will be a nullity.
Not Considering ADR: Ignoring mediation or negotiation can sometimes be a strategic error, as litigation is often more costly and time-consuming.
Underestimating the Debtor’s Defence: Assuming a debtor has no defence without thorough due diligence can lead to costly and drawn-out litigation.
Ignoring Enforcement Challenges: Winning a judgment is only half the battle. Understanding and planning for enforcement from the outset is crucial.

Interactive Challenge: If a potential client comes to you with a debt recovery case but only has text messages and verbal agreements as evidence, what is the first piece of advice you would give them regarding their chances in court?

The Role of a Legal Practitioner

While this guide provides comprehensive information, it cannot replace the expertise of a qualified legal practitioner in Nigeria. Here’s why engaging a lawyer is indispensable:

Legal Expertise: Lawyers understand the nuances of Nigerian debt recovery laws, court rules, and precedents.
Drafting Skills: Drafting precise, legally sound affidavits and other court documents requires specialized skills.
Procedural Compliance: Lawyers ensure all procedural requirements are met, preventing costly errors and delays.
Strategic Advice: They can advise on the best course of action, whether it’s negotiation, ADR, or litigation, and the most effective court procedure to pursue.
Representation in Court: Lawyers represent your interests effectively in court, presenting arguments, cross-examining witnesses, and responding to opposing counsel.
Enforcement: They navigate the complex process of enforcing judgments to ensure you actually recover your debt.

Interactive Reflection: Thinking about the complexities discussed, how confident would you be attempting debt recovery through the Nigerian courts without legal representation? What specific aspects would concern you most?

Conclusion: A Pathway to Justice and Financial Rectification

Debt recovery in Nigeria, while challenging, is a structured legal process designed to ensure creditors receive what they are owed. The affidavit stands as a critical pillar in this process, serving as the sworn voice of the creditor, presenting the facts, and laying the groundwork for judicial intervention.

By understanding the legal framework, the essential components of a robust affidavit, and the step-by-step court procedures, creditors can approach debt recovery with greater confidence and clarity. Remember, meticulous documentation, adherence to legal timelines, and the strategic guidance of a competent legal practitioner are not just recommended, but absolutely essential for a successful outcome.

While the journey may seem daunting, the Nigerian legal system offers clear pathways for justice. With the right approach and the proper legal tools, including a well-articulated affidavit, financial rectification and the recovery of rightful dues are within reach.

Final Interactive Thought: What is the single most valuable piece of information you gained from this blog post that changes your perspective on debt recovery in Nigeria? Share your biggest takeaway!

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