10/01/2022
DON’T USE POLICE TO COLLECT DEBT!
The believe among Nigerian masses is that police have the power to assist them to collect debts if their creditors failed to pay loan or other indebtedness. This perception is far from the truth. Let’s review the following scenario.
You are a businessman or businesswoman. You have built up your business and you have several loyal customers who purchase merchandises or services from you. One loyal customer who we will name Trading Partner (“TP”) has been trading with you for many years. He has built his trading credit with your business and you have extended huge credit line for him and he has been made repayment without default.
On this day, TP requested N2,000,000 (Two million Naira) worth of merchandise and services, which is within his unsecured credit line limit. The repayment term is 60 days. You graciously grant TP’s purchase order; and he carted away merchandise and received needed services. You and TP are now in a creditor and debtor relationship.
The 60 days granted TP to repay the credit advance had lapsed, but TP paid zero amount. You became restless and worried. You made several demands for TP to repay the loan. TP made several promises to pay, but failed to fulfil his promises.
A short while later, a business opportunity with huge profit margin emerged. You needed N1,000,000.00 million to close the deal. But, you are cash strapped. If TP repaid his debt, you will close the deal. You approached TP and demanded he repay half of the N2,000,000.00 he owed you. TP promised he will repay in 7 days. You threatened to use the police to arrest him and get your money from him. TP says there won’t be any need to involve the police because he is sure he will pay N1,000,000.00 out of the N2,000,000.00 he owed you within 7 days. Alas! TP’s promised 7 days came and gone, TP failed to keep his promise. Unfortunately, you missed the business opportunity because you couldn’t raise N1,000,000.00 needed to close the deal.
You are frustrated and you are mad like hell! You consider several options on how to get TP to repay your debt. The thought to use the police coercive power to help you collect the debt from TP came to your mind. You breadth a fresh air; and you said to yourself: Yes, that is the best option - I will use police to arrest TP so that the police can help me get my money from TP.
Whao! The option to use the police to assist you to collect the debt TP owes is the worse possible option out of many options available to you. Don’t ever seek or approach the police to assist/help debt in Nigeria. Because In Nigeria/under Nigeria law, the police (Army, Navy, EFCC, etc) have no right or power to arrest anyone in aid of efforts to collect debt. The arrest of a debtor because of failure to repay debt is outright illegal in Nigeria.
Now you know not to use the police or any other law enforcement officers to harass debtor or to help you collect debt. The use of police to collect debt will land you in deeper trouble! Meanwhile, it is often said that knowledge is power. But, I subscribe to the school of thought that says: knowledge is powerful when you use it appropriately!
My regards and best wishes.
Prince Bayo Ogunmeno, BA, BL, JD, Esq
Barrister, Solicitor, Arbitrator and Mediator
Principal Lawyer at Ogunmeno Law Chambers
Contact: 2348095830905 or 2348158083287
Email: [email protected]
,
