AI agents for business finance: what they can and can't do
What AI agents can do in bookkeeping, close, collections and compliance today, where a person must stay in charge, and how to judge a product.
The short answer
Start with dated reminders that quote the invoice and contract, then send a formal letter of demand giving a clear deadline, usually 14 days. For debts up to ₦5 million against a Lagos client, the Lagos small claims court handles liquidated money claims and aims to reach judgment within 60 days of filing. Larger or foreign-currency debts usually need a Nigerian lawyer, or arbitration if your contract provides for it.
First, find out why it is late
Most late payments from Nigerian clients are not refusals. Common causes are a missing document the bank needs for a foreign payment, an invoice sent to the wrong person, a dispute over part of the work, or cash-flow trouble. A short call with the finance contact often reveals which. If the problem is foreign exchange paperwork, see why a Nigerian client says it cannot pay in dollars; offering a naira route may solve it in days.
A reminder sequence that works
| When | What to send | Tone |
|---|---|---|
| Due date minus 5 days | Friendly note with the invoice attached and payment details | Courteous |
| Due date plus 3 days | Reminder quoting invoice number, amount and due date; ask if anything is missing | Neutral |
| Due date plus 14 days | Second reminder to the finance contact and your project sponsor; propose a payment date | Firm |
| Due date plus 30 days | Final reminder stating that a formal demand will follow by a named date; pause further work if the contract allows | Formal |
| Due date plus 45 days | Letter of demand | Formal |
Keep every reminder in writing, even after a phone call. A written trail is what a court, an arbitrator or a lawyer will ask for.
The letter of demand
A letter of demand states the debt, the basis for it and a deadline, and says what you will do if it is not paid. It should include:
- Your name and address abroad and the client's registered name and address.
- The contract, the work delivered and the date it was accepted.
- Each unpaid invoice, its amount and due date, and any interest your contract allows.
- A deadline for payment, commonly 14 days, and the account to pay into.
- What follows if unpaid: a claim in court or arbitration.
A letter from a Nigerian lawyer carries more weight with many clients than one from you, and costs relatively little. If you use the Lagos small claims court, its own Letter of Demand form (Form SCA 1) is the first step and gives the debtor 14 days.
Small claims in Lagos
Lagos runs a small claims procedure in designated Magistrates' Courts under a 2023 practice direction. A copy published on the Lagos MSME and PEBEC site sets out the main points:
- Claim type
- A liquidated money demand (a fixed, known sum)
- Limit
- Not more than ₦5,000,000, excluding interest and costs
- Where
- The claimant or defendant lives or carries on business in Lagos, or the cause of action arose there
- Forms
- SCA 1 letter of demand (14 days), SCA 2 complaint with documents such as contracts and receipts, SCA 3 summons
- Timetable
- Defence within 6 days of service, hearing within 30 days, judgment within 14 days, filing to judgment within 60 days
- Companies
- Represented by the company secretary or a principal officer
The direction does not state filing fees in the copy reviewed. A client carrying on business in Lagos meets the location test even when you live abroad, but you may need to appear or be represented; ask the court registry how it handles claimants outside Nigeria. Edo State has a similar procedure with the same ₦5 million limit. Other states vary.
Worked example (illustration only)
A London illustrator is owed ₦3,600,000 on two invoices of ₦1,800,000 by an Ikeja agency. She sends Form SCA 1 on 1 March giving 14 days. Unpaid by 15 March, she files Form SCA 2 with her contract, invoices and email trail. On the practice direction's timetable, judgment should come by about mid-May. If her invoices had been for £3,000 instead, she would need to show the naira value within the limit, so a naira or dual-currency invoice can matter later.
Bigger debts, foreign courts and arbitration
Above the small claims limit, or for disputed claims, a Nigerian lawyer can file in the High Court of the state where the client is. You could also sue in your own country, but a foreign judgment then has to be enforced in Nigeria. A guide by Streamsowers & Köhn on the Global Legal Post says registration must be applied for within 12 months of the foreign judgment unless a superior Nigerian court extends the time, and lists grounds for refusal including lack of notice and lack of jurisdiction. Mondaq's June 2026 guide notes the 1922 Ordinance covers UK superior courts, so a judgment from a lower court may not qualify. If your contract has an arbitration clause, an award can be enforced in Nigeria under the Arbitration and Mediation Act 2023, which incorporates the New York Convention. Choosing governing law and jurisdiction in a contract with a Nigerian client explains how to set this up before work starts.
Where Pryme fits
A Pryme Business account gives a Nigerian client naira account details to pay you by local transfer, which removes a common excuse. Invoicing keeps invoice numbers and due dates in one place, and the Finance agent can prepare reminder drafts on your schedule for you to approve and send.
Questions people ask
How do I recover money from a Nigerian client while abroad?
Send written reminders, then a letter of demand with a 14-day deadline. For up to ₦5 million against a Lagos client, use the Lagos small claims court; for more, instruct a Nigerian lawyer.
What is the small claims limit in Lagos?
₦5,000,000, excluding interest and costs, under the 2023 practice direction.
Can I sue a Nigerian company in the UK?
You can, but a UK judgment must then be registered in Nigeria, generally within 12 months, and lower-court judgments may not qualify.
Should a lawyer send the demand letter?
It is not required, but a Nigerian lawyer's letter often gets faster attention and prepares the ground for a claim.
Sources
- Lagos State Practice Direction on Small Claims Court 2023 (copy on lagosmepb.org) · accessed Oct 2026
- Global Legal Post: Enforcement of judgments law guide, Nigeria (Streamsowers & Köhn, Apr 2026) · accessed Oct 2026
- Mondaq: Enforcing UK and US judgments in the Nigerian Federal High Court (24 Jun 2026) · accessed Oct 2026
This article is general information, not financial, legal or tax advice. Products described are provided under the terms on this site and are subject to regulation and eligibility.