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
Your options depend mostly on what the contract says. A written contract with an arbitration clause gives you an award that both Nigeria and the US have agreed, under the New York Convention, to recognise and enforce for commercial disputes. Without one, you are choosing between negotiation, mediation (such as the Lagos Multi-Door Courthouse) and a court case in Nigeria, and in every route the evidence of what was ordered, paid and delivered decides the outcome.
Start with the paper trail
Most disputes with Nigerian suppliers come down to a few patterns: goods not shipped after a deposit, short shipment, wrong specification, poor quality, or goods refused by the FDA because the supplier's facility was not registered or the label was wrong. Before you choose a route, assemble:
- The purchase order, proforma invoice and any written specification.
- The contract or terms you agreed, including messages where terms were set.
- Proof of payment: bank or transfer records showing amount, date, payee and account.
- Shipping documents: bill of lading or air waybill, packing list, commercial invoice.
- Inspection or lab reports, photos on arrival, and any FDA or CBP notice.
- All messages about the problem, kept in their original form.
If an FDA detention or refusal is the cause, the notice itself is strong evidence of what went wrong. See what to do after a shipment is held.
Route 1: negotiation and a written settlement
Many disputes end with a credit on the next order, a partial refund or a replacement shipment. Whatever you agree, put it in writing with amounts, dates and what happens if the supplier does not perform. A settlement that only exists on a call is hard to enforce later.
Route 2: mediation in Nigeria
The Lagos Multi-Door Courthouse offers alternative dispute resolution, with mediators and arbitrators, for commercial disagreements among other matters. Its homepage gives its address as 27/29 King George V Road, Onikan, Lagos, with contact details, but no fees. Mediation needs the supplier to take part, and its value is that it is faster and cheaper than court and keeps a trading relationship alive. Ask the courthouse directly about fees and whether parties abroad can attend remotely.
Route 3: arbitration under your contract
Arbitration is only available if both sides agreed to it, usually in a clause in the supply contract. The advantage is enforcement. UNCITRAL's status table for the New York Convention shows Nigeria acceding on 17 March 1970 and the United States on 30 September 1970. Both apply the Convention to awards made in another contracting state and to legal relationships considered commercial under national law. A supply contract between a US buyer and a Nigerian seller is a commercial relationship, and both countries are contracting states.
A workable clause names:
- the seat of arbitration (the legal home of the process, such as Lagos or a US city);
- the rules and the institution that will administer it;
- the number of arbitrators and the language;
- the governing law of the contract.
The cost of arbitration can be high relative to a small shipment. For low-value disputes, a clause that steps from negotiation to mediation before arbitration is often more useful.
Route 4: court proceedings
Without an arbitration clause, a claim generally means a court case where the supplier is, which for most diaspora importers means Nigeria, with a Nigerian lawyer. Getting a US court judgment and then enforcing it against assets in Nigeria is a separate exercise; take advice from lawyers in both countries before relying on it. This is information, not legal advice.
A worked example: valuing a short shipment
Example only. You order 1,000 cartons of garri at $12 each, $12,000 in total. You pay a 40% deposit of $4,800 and the balance of $7,200 against the bill of lading. Only 800 cartons arrive, and the packing list says 1,000.
| Item | Amount |
|---|---|
| Paid for 1,000 cartons | $12,000 |
| Value of 800 cartons received | $9,600 |
| Shortfall (200 cartons at $12) | $2,400 |
Your core claim is $2,400, plus any costs the contract lets you recover. Evidence that wins it: the packing list, the arrival tally, photos, and payment records showing the full $12,000 was paid. A claim this size usually justifies negotiation or mediation, not arbitration.
How to make the next dispute easier
- Check the supplier is a registered company before the first payment. Our Nigeria library explains how to verify a Nigerian company.
- Use a written contract with specification, inspection, delivery terms and a dispute clause.
- Pay against documents where you can. The ITA's Trade Finance Guide describes letters of credit, where the bank pays only against compliant documents, and notes they are relatively expensive; documentary collections are cheaper but give fewer protections.
- Keep payment records you can prove. See using verifiable invoices with Nigerian suppliers.
Where Pryme fits
In every route, a clean record of what you paid matters. A Pryme Business Account keeps USD and NGN payments to suppliers in one place, and a verifiable statement from VerifyDoc.ai lets a mediator, arbitrator or court confirm the record is genuine and unaltered. See business multicurrency accounts.
Questions people ask
Can I sue a Nigerian supplier from the US?
Possibly, but enforcing a US judgment against assets in Nigeria is a separate step. Take advice from lawyers in both countries.
Is an arbitration award enforceable in Nigeria?
Nigeria is a party to the New York Convention, applying it to commercial awards made in other contracting states, which include the US.
What is the Lagos Multi-Door Courthouse?
A Lagos centre offering mediation and arbitration services for commercial and other disputes. Contact it directly for fees and procedures.
What evidence do I need in a supplier dispute?
The order, specification, contract, proof of payment, shipping documents, inspection reports and all messages, kept in original form.
Sources
- UNCITRAL: Status, Convention on the Recognition and Enforcement of Foreign Arbitral Awards (New York, 1958) · accessed Oct 2026
- Lagos Multi-Door Courthouse: home page · accessed Oct 2026
- US International Trade Administration: Trade Finance Guide (2022 edition) · accessed Oct 2026
- FDA: Detention and hearing (content current as of 17 Oct 2024) · 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.