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
If the contractor was real, started or promised work and then stopped, it is usually breach of contract: send a written demand and, in Lagos, use the small claims court for sums up to ₦5,000,000. If they lied about who they were or never meant to do the work, it can be a crime, and a police report is the first step; many cases involve both.
Breach of contract or fraud: the distinction that decides your route
The police and the courts look at different questions. A civil court asks: was there an agreement, and did the other side fail to keep it? The police ask: was someone deceived into paying, by a person who never intended to deliver? The answer shapes where you go first.
| Signs it is mainly a broken contract | Signs it may be fraud |
|---|---|
| You know their real name, address or workshop | Name, phone number or address turn out to be false |
| They did some work, bought some materials or kept in touch for a while | No work, no materials, contact cut off as soon as money landed |
| Delays come with excuses (illness, supplier, price rises) | Several other customers report the same pattern |
| They admit owing you | They used a fake business page, stolen photos or another person's account |
Many cases sit in between. A plumber who takes ₦150,000 for materials, buys half, and stops answering has broken the contract and may also have taken money dishonestly. You can pursue both.
The civil route
1. A written demand
Write to the contractor by WhatsApp, SMS and, if you have an address, letter. State what was agreed, what you paid and when, what was done, and what you want: completion by a date, or a refund of a stated amount within 14 days. Keep it factual.
2. Small claims (Lagos example)
The Lagos State Small Claims Court practice directions cover liquidated money demands up to ₦5,000,000 (excluding interest and costs) with a Lagos connection, such as where the work was to be done. The steps are:
- Serve a Letter of Demand on Form SCA 1 and allow 14 days.
- If unpaid, file a complaint on Form SCA 2 with your evidence.
- The Sheriff serves the contractor; the directions provide for service within 7 days.
- Represent yourself if you wish; the directions aim for judgment within 60 days of filing.
Outside Lagos, ask the magistrate court registry in your state how small money claims are handled.
The police route
Where deception is involved, report at the police station nearest to where you paid or where the work was to be done, with your evidence. Where the deception happened through messages or online adverts, the Cybercrimes Act 2015 is relevant: section 12(2) covers sending misleading electronic messages with intent to defraud, carrying at least five years' imprisonment or a fine of at least ₦10,000,000. For online cases, the police run the NPF-NCCC cybercrime e-reporting portal.
Failing to deliver what was paid for can lead to criminal charges in some circumstances. In one reported case from September 2025, a thrift collector in Ekiti State was arraigned on charges including conversion of funds after failing to pay out contributions. That shows the police route exists, but a prosecution punishes; getting your money back is a separate question for the court.
Evidence to gather now
- Transfer receipts and your statement showing every payment, with session IDs.
- The quote, list of materials or chat where the price and scope were agreed.
- Photos of the site before and after, and of any materials delivered.
- The contractor's name, phone, address, the account name they gave, and who introduced them.
- Names of anyone else who used the same contractor.
Before you pay the next contractor
- Get the price, scope and timeline in writing, even as a WhatsApp message both of you confirm.
- Pay for materials against a receipt from the supplier, or buy them yourself.
- Pay labour in stages after each stage is done, not all upfront.
- Pay into an account in the contractor's own name, and note the name your bank shows before you send.
- Ask for a previous client you can call.
Worked example
Example only. Bisi agrees ₦480,000 for tiling: ₦300,000 upfront for tiles and labour, ₦180,000 on completion. The tiler delivers tiles worth about ₦120,000, lays one room, then stops answering. Bisi has paid ₦300,000 and received roughly ₦120,000 of materials plus one room of labour. She sends a written demand for completion or a refund of ₦150,000 (her estimate of the unearned balance, which she sets out line by line). After 14 days she files in the Lagos small claims court. Because the tiler was real and did some work, she treats it as a contract case rather than going to the police.
Where Pryme fits
Paying in stages, against work you have seen, is the best protection. A Personal Assistant on Pryme can remind you of each stage payment, but nothing moves until you approve it, and every payment comes with a verifiable receipt you can show a court. Read also paying traders and artisans: proof that holds and when a court order is worth it.
Questions people ask
Can I report a contractor who collected money and did not do the work to the police?
Yes, if you believe you were deceived. If the contractor is real and simply failed to finish, a written demand and a civil claim are usually more effective.
What is the limit for small claims in Lagos?
₦5,000,000, excluding interest and costs, under the Lagos Small Claims Court practice directions.
Do I need a lawyer for the small claims court?
No. The Lagos practice directions let parties represent themselves.
How do I prove I paid an artisan?
Your transfer receipts and bank statement, plus the chat or quote showing what the payment was for.
Sources
- Lagos State: Small Claims Court Practice Directions (file dated 17 Dec 2025) · accessed Oct 2026
- Cybercrimes (Prohibition, Prevention, etc.) Act 2015 (PDF copy) · accessed Oct 2026
- Techeconomy: Nigeria Police launches platform for reporting cybercrime (31 May 2024) · accessed Oct 2026
- Peoples Gazette: Thrift collector in court over alleged theft of ₦365,000 contribution (10 Sep 2025) · 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.