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
Most disputes with Nigerian suppliers are settled by firm, documented negotiation, then mediation. The Lagos Multi-Door Courthouse aims to finish mediation within 30 days of appointing a mediator, and a settlement endorsed by its judge is enforceable as a Lagos High Court judgment. If your contract has an arbitration clause, Nigeria's Arbitration and Mediation Act 2023 applies the New York Convention, so awards can be enforced across borders.
Start with your contract and your evidence
Before choosing a route, gather what you have. The strength of any claim depends on it:
- The purchase order, proforma or contract, and any specification.
- The Incoterm, which tells you where risk passed (see Incoterms with a Nigerian supplier).
- Payment records showing who you paid and when.
- The bill of lading or air waybill, packing list and any inspection report.
- Photos, survey reports and all messages, including WhatsApp.
- The supplier's registered name and address from the CAC register (see checking the CAC register).
Check the contract for a dispute clause. It may name a governing law, a court, or arbitration and a seat. If there is nothing written, Nigerian courts will usually be the realistic forum against a Nigerian company with assets only in Nigeria.
Option 1: negotiate, in writing
Send a clear written complaint: what was ordered, what arrived, the loss, and what you want (replacement, credit, refund). Set a reasonable deadline. Many disputes end here, especially where the supplier values repeat orders. If the reply goes nowhere, a formal letter before action from a Nigerian lawyer shows you are prepared to go further; see letter before action templates.
Option 2: mediation
The Lagos Multi-Door Courthouse (LMDC) on King George V Road, Onikan, provides mediation and arbitration for commercial disagreements. Its Mediation Practice Direction sets the pace:
- Start
- A written request to the LMDC.
- Respondent
- Has 7 days to respond.
- Mediator
- Agreed within 7 days.
- Sessions
- No more than 10 days apart, aiming for three.
- Finish
- Within 30 days of the mediator's appointment.
- Result
- A signed settlement endorsed by the ADR judge is enforceable as a Lagos High Court judgment.
Fees are an administrative fee plus session fees; the Practice Direction does not state amounts, so ask the LMDC. Under the Arbitration and Mediation Act 2023, as summarised on Mondaq, mediated settlements are binding and enforceable as a contract, a consent judgment or a consent award, and limitation periods are suspended while mediation runs.
Option 3: arbitration
Arbitration needs an agreement, normally a clause in the contract. The 2023 Act repealed the old Arbitration and Conciliation Act and added features such as an emergency arbitrator appointed within two business days of an application, and an optional Award Review Tribunal. Section 60 incorporates the New York Convention for awards from Convention states arising from commercial relationships, according to Streamsowers & Kohn in Global Legal Post. UNCITRAL's status table shows Nigeria acceded on 17 March 1970, with reciprocity and commercial reservations.
In practice, an award made in London, Lagos or another Convention state can be enforced in Nigeria, subject to the refusal grounds in the Convention, such as no proper notice or public policy. For an earlier look at Lagos arbitration, see arbitration with a Nigerian client.
Option 4: courts
You can sue in Nigeria, through a Nigerian lawyer, without travelling for every hearing. Or, if your contract allows, sue at home and then enforce in Nigeria. Streamsowers & Kohn's guide says foreign judgments are registered under the Reciprocal Enforcement of Judgments Ordinance 1922 or the Foreign Judgments (Reciprocal Enforcement) Act 1990, within 12 months of the judgment unless a superior court extends that. Registration can be refused for reasons including lack of jurisdiction, fraud, public policy, or a judgment that is not final or not for a sum of money.
Keeping the claim proportionate
Work out what the problem is worth before you pick a route. Example only: you paid $8,000 for 400 cartons of dried crayfish, and a survey at your end finds 120 cartons spoiled. The loss on the goods is 120/400 of $8,000, which is $2,400, plus the survey fee and disposal costs. A claim of that size usually justifies a firm letter and mediation; it rarely justifies arbitration, whose costs can exceed the claim.
- Claim in the contract currency, and show how you calculated each figure, with the survey report attached.
- Offer a practical fix first: replacement goods, a credit on the next order, or a part refund.
- Agree your Nigerian lawyer's fees in writing before they act.
- Watch time limits. The 2023 Act, as summarised on Mondaq, suspends limitation during mediation, but limitation still applies to arbitration.
Choosing a route
| Route | Best for | Watch out for |
|---|---|---|
| Negotiation | Most disputes, ongoing relationships | Promises without dates |
| Mediation | Clear facts, both sides willing | Needs the supplier to attend |
| Arbitration | Contracts with a clause, larger sums | Cost; needs a prior agreement |
| Courts | No clause, supplier ignoring you | Time, and enforcing against assets |
Where Pryme fits
Disputes are easier when your records are clean. Payments from a Pryme Business Account carry references, and verifiable receipts and statements from VerifyDoc.ai let a mediator or lawyer confirm they are genuine and unaltered.
Questions people ask
How do I take a Nigerian supplier to court from abroad?
Instruct a Nigerian lawyer to file in the right Nigerian court, or sue at home if your contract allows and register the judgment in Nigeria within 12 months.
Can I use the Lagos Multi-Door Courthouse from abroad?
You start mediation with a written request. Ask the LMDC about remote sessions and fees, since the Practice Direction does not state them.
Is a foreign arbitration award enforceable in Nigeria?
Generally yes for awards from New York Convention states in commercial matters, under section 60 of the Arbitration and Mediation Act 2023, subject to refusal grounds.
What should I do first when goods from Nigeria are wrong?
Record the problem with photos and survey, check the contract and Incoterm, and send a written complaint with a deadline.
Sources
- Lagos Multi-Door Courthouse Practice Directions on Mediation (NigeriaLII) · accessed Oct 2026
- Lagos Multi-Door Courthouse · accessed Oct 2026
- Mondaq: Salient provisions of the Arbitration and Mediation Act 2023 · accessed Oct 2026
- Global Legal Post (Streamsowers & Kohn): Enforcement of judgments, Nigeria · accessed Oct 2026
- UNCITRAL: Status of the New York Convention · 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.