Debt Recovery Practices and Debtors’ Rights in Nigerian Commercial Courts: Emerging Issues

Debt recovery litigation is among the most common categories of commercial dispute in Nigerian courts, yet the process is frequently characterised by procedural delays, high costs, and inadequate protection of the rights of debtor parties. This study examines current debt recovery practices in Nigerian commercial courts and evaluates the rights of debtors in enforcement proceedings, focusing on the Commercial Divisions of the Lagos, Kano, and Abuja High Courts between 2020 and 2024. Using a practitioner-oriented research design combining doctrinal analysis with interviews involving 35 debt recovery lawyers and 15 commercial court registrars, the research evaluates the use of summary judgment procedures, garnishee proceedings, and Mareva injunctions in debt recovery actions. Findings reveal that while summary judgment procedures expedite recovery in straightforward cases, commercial debtors face difficulties challenging inflated claims, disputed interest calculations, and premature enforcement actions. The study further examines how the recently introduced commercial court practice directions have affected debt recovery timelines and the protection of debtor rights to fair hearing. Recommendations include the mandatory introduction of pre-action debt negotiation, clearer judicial guidelines on interest calculations in debt claims, enhanced procedural protections for consumer debtors, and the establishment of specialised small claims debt recovery procedures accessible to small creditors. Keywords: debt recovery, commercial courts, debtors' rights, enforcement, Nigeria