Hakort International Country Credit Risk update: Nigeria

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Hakort International collects debts in every country in the world. In this Country Credit Risk update we focus on Nigeria.

Citizens: 206.139.587
Languages: English is the official language. After English, Hausa, Yoruba and Igbo are major languages. Nigeria is very diverse and has more than 520 languages.

Currency: Nigerian Naira (NGN)
Statue of limitation: 6 years
Law: English law, common law, customary law and Sharia law are applicable. Each law is used in different regions and circumstances.

Average credit risk: high
(Pre) legal options: extensive & reliable
Economic situation: fragile
Political situation: fragile

Background

The “Giant of Africa”, the Federal Republic of Nigeria, is very diverse and is located in West Africa. Nigeria deducts its nickname due to all the different languages, ethnicities and religions. The majority of the population practices the religions Islam and Christianity. It is also the 7th most populous country in the world, despite the high mortality rates and low life expectations. Nigeria has a rich film industry as well. Their film industry is known as “Nollywood” and it is the second largest movie producer in the world after India’s Bollywood. Just like in other African countries, some Nigerians consider the left hand to be unclean. They use the left hand as a sign of disrespect. The people who believe this, don’t eat, receive items and shake hands with their left hand.

Local approach

We believe that the success of collecting a debt is always based on a local approach. Our local debt collection officers, paralegals and attorneys need to be as close to the debtor as possible. They speak the language, and know their culture and even more importantly; they also know how the legal process works as one of the best. Our average length of the pre-legal fase in Italy takes approximately two months. Keep in mind that legal procedures in Italy can take a long time. That is why a powerful and decent pre-legal procedure is of great importance.

Risks

In large measure, Nigeria is the biggest exporter of oil in Africa and has got the largest economy of the continent. It became a member of OPEC in 1971. As a member of OPEC, the country has been a big producer of petroleum and is a key player in the international oil industry. Nigeria is the 12th largest oil producer and the 8th largest exporter in the world. With approximately 40% of the gross domestic product (GDP) and about 80% of the government’s income, petroleum is really important for the export. However, most of the population works in the agricultural industry.

In the Nigerian politics, tribalism and religious persecution are a major topic. Currently, the political parties are irreligious and pan national. Muhammadu Buhari head of the state and of the Federal Republic of Nigeria. A major problem in Nigeria, as in many other African countries, is corruption. By many parties methods as vote rigging or other coercion occur during elections.

There are different kinds of laws applicable in Nigeria, as stated above. The jurisdiction of courts is distributed between the Federal Government and the 36 states governments as well as the Federal Capital Territory in Abuja. The 36 states and the Federal Capital Territory are subdivided into 774 Local Government Areas (LGA’s). The highest court is the Supreme Court of Nigeria.

Hakort International Services

  • Debt collection (pre-legal and legal)
  • Litigation
  • Address research
  • Site visits
  • Credit checks

NOTE: The information in this article is provided by Hakort international. We are one of the key players providing global debt collection services. This article represents a compilation of information of several reputable sources. Please always look at the date of publication to determine how actual the information is. To get the most recent and accurate Country Credit Risk update, always contact our office first: info@hakortinternational.com. No rights can be derived from this article.