Nigeria | What is Most Effective Debt Collection Mechanism in Nigeria?(2)
Contributed by CJP Ogugbara, CJP Ogugbara & Co (Sui Generis Avocats), Nigeria.
Due to the volatile nature of the Nigerian economy, it has become very imperative for Law Firms preparing suits to ensure that their claims have futuristic effects.
Because of the volatile nature of the Nigerian economy, it has become very imperative for Law Firms preparing suits to ensure that their claims have futuristic effects. This includes the use of good drafting skills to accommodate incidents of inflation, deflation, exchange rate and other interventions that can hedge the devaluating consequential effect of the monetary policies of the Nigeria Government. Thus, a counsel drafting must ensure that the debt is treated in his pleadings as monies in the bank which accrues interests for the owner. For instance, it would be drastic if counsel to a creditor decides to claim the debts in the domiciliary currencies instead of the stated currency on the invoice. The implication is that the amount submitted to the court as claims or for adjudication remains static irrespective of the changes in the exchange rate. The court does not have the power to make orders not claimed by the claimant, except in certain cases that require consequential orders.
It is strongly advised that a versed and seasoned litigation law firm be engaged in the recovery of debts through the courts. First, such counsel would deplore all expertise in speedy pursuit of the case, by avoiding all manners of contentious applications and being in tune with reality to know what response to put up in deserving circumstances. All these are all about the effort to avoid delays. Moreso, due to certain unavoidable circumstances or time bound procedural steps that are compulsory, such as periods of response, time of filing, extension of time privileges and rights, a litigation guru, who has access to the Account information of the Debtor can assuage the court through applications to place lien or restrict access to funds in the Account of the debtor. Alternatively, such application can be extended to moveable equipment of the debtor which can be used in the satisfaction of the judgment in the event the debtor fails to pay after Judgment. Such application is called Mareva Injunction.
Contributor: CJP Ogugbara
Agency/Firm: CJP Ogugbara & Co (Sui Generis Avocats)(English)
Position/Title: Founding Partner
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This post is a contribution from CJP Ogugbara & Co (Sui Generis Avocats). Established in 2014 as a Partnership Firm in Nigeria, CJP Ogugbara & Co has been working along and engaging in dispute management, litigation and arbitration, commercial practice: real estate and investment advisory, tax practice and energy consultancy. Apart from the core practice areas, they also facilitate and extend practice to the development of clients’ businesses and corporate interests, especially as they apply to the Nigerian economy and investment circle.