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The short answer
A debt acknowledgement letter is a short document, signed by the person who owes, confirming the amount and that it is unpaid. Nigerian courts treat a written, signed acknowledgement as reviving the right to sue, and limitation laws for simple contract debts commonly run six years (five in Delta State), so the date on the letter can matter as much as the amount.
Why a signed acknowledgement is worth having
Most small business debts in Nigeria start with a phone call and a promise. That is fine until the customer goes quiet, disputes the figure or argues that too much time has passed. A debt acknowledgement letter fixes three things in writing: who owes, how much, and that they accept it.
It is evidence of the debt
If you later file a claim, the letter answers the question a court or a small claims judge asks first: is the sum agreed? In Lagos, for example, the Small Claims Court practice direction covers liquidated money demands up to ₦5,000,000 (excluding interest and costs) and asks the claimant to attach documents such as contracts and receipts. A signed acknowledgement is exactly that kind of document.
It can restart the limitation period
Each state has a limitation law that sets how long you have to sue. A LawCare Nigeria article (September 2019) describes a six-year period for simple contract debts, and cites the Supreme Court in NSITF v Klifco Nigeria Ltd for two points: the limitation law bars the remedy rather than wiping out the debt, and an acknowledgement revives the right to recover if it is 'in writing signed by the party that is liable'.
In Andy Surveys Co v Chevron (Court of Appeal, Asaba, June 2024), reported by LawPavilion, the Delta State Limitation Law's five-year period applied, and the court read its section 30(5)(a) as treating the right as accruing on the date of an acknowledgement or part payment. Periods and wording differ by state, so check the law of the state where the debt arose; this is information, not legal advice.
The template
Ask the debtor to print this on their own letterhead if they are a business, or to sign it in front of a witness if they are an individual. Fill in every blank; a vague letter is weaker evidence.
- Date: [day month year]
- From: [Debtor's full name or registered business name, RC/BN number, address, phone]
- To: [Creditor's full name or business name, address]
- I/We, [debtor], confirm that as at [date] I/we owe [creditor] the sum of ₦[amount in figures] ([amount in words]) for [goods supplied / services rendered / loan advanced] under [invoice numbers, dates or agreement reference].
- I/We confirm this sum is due, unpaid and not disputed. [If part is disputed, state the agreed figure only.]
- I/We agree to pay this sum by [lump sum on date] / [instalments of ₦____ on the ____ day of each month from ____ until fully paid] into [account name and number].
- If any instalment is missed by more than [number] days, the full outstanding balance becomes due immediately.
- Signed: ____ Name: ____ Position (for a company): ____
- Witness: Name ____ Address ____ Signature ____
A worked example
Example only. A cement retailer in Onitsha supplied ₦1,850,000 of stock to a contractor over three invoices. The contractor paid ₦350,000 and stopped. In the letter, the contractor confirms a balance of ₦1,500,000 and agrees to six monthly payments of ₦250,000. Check the sum: 6 × ₦250,000 = ₦1,500,000, and ₦1,850,000 − ₦350,000 = ₦1,500,000. The two figures agree, which is what you want; a letter whose instalments do not add up to the acknowledged balance invites a later argument.
Note the date as well. If the last invoice was eighteen months ago and the contractor signs on 1 March, the Delta-style reading in the Andy Surveys case treats the right to sue as accruing again from 1 March. Each later instalment the contractor pays is a further dated record that the debt is accepted. Keep the bank narrations; a transfer reading 'part payment, invoice 114' is useful evidence on its own.
When to ask for one
- When a customer asks for more time and you agree.
- When an account has gone past your normal credit terms and you are about to stop supplying.
- Before a key contact at the customer leaves, so the debt is not lost with their memory.
- When a debt is getting old and you have not yet decided whether to sue.
Stamping and signatures
Under the Nigeria Tax Act 2025, as summarised in an April 2026 journal article by Olagoke Odubunmi, dutiable instruments must be stamped within 30 days of execution, and section 127(1) says an unstamped dutiable instrument is not admissible in civil or arbitration proceedings. The same article lists fixed duties for agreements in the Ninth Schedule. Whether a bare acknowledgement is a dutiable 'agreement' depends on its wording; one that adds a payment plan looks more like an agreement. If you expect to rely on it in court, ask the Nigeria Revenue Service or your lawyer, and stamp it if in doubt. Our guide to stamp duty on contracts covers the process.
What to check first
- The debtor's legal name matches the CAC record or their ID.
- The amount matches your ledger and invoice numbers are listed.
- The person signing for a company has authority to do so.
- You keep the original and a scanned copy, and note the date it was signed.
- If the debtor refuses to sign, move to a formal demand; see how to recover an unpaid invoice.
Where Pryme fits
If you agree an instalment plan, Pryme invoicing can issue each instalment as its own invoice, and a verifiable receipt from VerifyDoc.ai for every payment gives both sides a record anyone can check is genuine and unaltered. For informal personal loans, see the IOU template.
Questions people ask
Is a WhatsApp message admitting a debt enough?
It is evidence, but the Supreme Court's test cited in LawCare's summary is an acknowledgement in writing signed by the person liable. A signed letter is stronger and removes argument about who sent the message.
How long do I have to sue for a debt in Nigeria?
It depends on the state's limitation law. Six years is commonly cited for simple contracts, and Delta State's law applies five years. A signed acknowledgement or part payment can restart the clock.
Does a debt acknowledgement letter need a lawyer?
No. Either party can draft and sign it. A lawyer helps if the sum is large or the debtor is a company with unclear signing authority.
Do I need to stamp a debt acknowledgement letter?
It depends on whether it counts as a dutiable agreement. Unstamped dutiable instruments cannot be used in civil proceedings, so check with NRS or a lawyer if you plan to sue on it.
Sources
- LawCare Nigeria: Debt recovery in Nigeria (Resolution Law Firm, 14 Sep 2019) · accessed Oct 2026
- LawPavilion: When does the right of action to recover a debt accrue? (Andy Surveys v Chevron, 2024) · accessed Oct 2026
- Odubunmi, Examining the legal framework for the collection of stamp duties under the NTA 2025, NAU Journal of Private and Property Law (Apr 2026) · accessed Oct 2026
- Lagos State Small Claims Court Practice Direction 2023 (file dated Dec 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.