For most Nigerian agencies the problem isn't winning clients, it's getting paid by them. A single large client paying 90 days late can mean salaries paid from an overdraft, VAT paid on money you haven't received, and a founder spending Fridays on the phone. Collections isn't about being aggressive. It's about a system that runs whether or not you feel like chasing.
Why do clients pay late?
In most Nigerian corporate payables processes, late payment has boring causes:
- The invoice is stuck. No PO number, missing TIN, wrong entity name, sent to the wrong person.
- Approval chains. The invoice needs sign-off from someone who's travelling.
- Payment runs. Many companies pay suppliers only once or twice a month.
- Nobody asked. Invoices without follow-up sink to the bottom of the pile.
- Cash-flow games. Some clients deliberately stretch suppliers. A system protects you here too.
Fix the first four and the fifth becomes visible.
Step 1: Prevent late payment in the contract
- Payment terms in writing: 14 or 30 days from invoice date, not "on completion".
- A deposit or mobilisation fee on project work. See mobilisation fees and deposits.
- Milestone billing for projects longer than a month.
- A late-payment clause. Even if you rarely enforce it, it sets expectations.
- The right to pause work when invoices are more than a set number of days overdue.
- Get the client's vendor onboarding done before you start: vendor registration, PO process and accounts contact.
Step 2: Send invoices they can actually process
Every invoice should carry the client's PO number, both companies' TINs, VAT shown separately and the correct legal entity name. Send it to their accounts payable email and copy your project contact. Use our invoice checklist.
Step 3: Follow a reminder schedule
| When | Channel | Tone |
|---|---|---|
| 3 days before due | Friendly heads-up with the payment link | |
| Due date | "Due today" with invoice attached | |
| 3 days late | Email + call to accounts | Check it's in the payment run |
| 7 days late | Email to accounts, copy your contact | Firm, ask for a payment date |
| 14 days late | Call your senior contact | Escalate the relationship, not the tone |
| 30 days late | Formal letter | Reference contract terms, late fees, work pause |
| 60+ days late | Pause work | Stop new work until the account is current |
Reminder templates you can use
Before due date
Hi [Name], a quick note that invoice [INV-0042] for [₦1,281,250] is due on [2 November]. You can pay by transfer to [bank details] or online here: [link]. Thank you.
7 days late
Hi [Name], invoice [INV-0042] for [₦1,281,250] was due on [2 November] and is now 7 days overdue. Could you confirm the date it's scheduled for payment? If anything is missing for your process (PO, documents), tell me and I'll send it today.
30 days late
Dear [Senior contact], invoice [INV-0042] for [₦1,281,250] is now 30 days overdue. Under clause [X] of our agreement, invoices are payable within [30] days. Please arrange payment by [date]. Otherwise we'll need to pause work on [project] until the account is up to date. We value this relationship and would rather resolve this quickly.
Step 4: Make paying easy
- A "Pay now" link on the invoice for card, transfer or USSD
- Your account number with a copy button
- A clear reference (the invoice number) so you can match the payment
- A way for the client to say "we've paid", so you're not chasing money that has already left their account
Step 5: Watch your aged receivables every week
Look at who owes you, and for how long every Monday: coming due, 1–30, 31–60, 61–90 and 90+ days. The 90+ bucket is the one that turns into bad debt. The earlier you act, the more you collect.
What if a client still won't pay?
After 60–90 days, and with your contract in hand: stop further work, send a formal demand letter (a lawyer's letter often works), and consider negotiated instalments rather than losing everything. Keep emails and delivery evidence organised from the start.
How BizBooks automates this
BizBooks sends polite reminders automatically (the day before the due date, then 3 and 7 days late), adds a one-tap payment link through your own Paystack or Flutterwave, lets clients say "I've sent the transfer", and shows aged receivables on your dashboard. See invoicing.
Frequently asked questions
How do I politely remind a client to pay?
Send a short, specific message with the invoice number, amount, due date and a way to pay, and ask them to confirm the payment date. Offer to send anything missing for their process.
When should I stop work for non-payment?
Set the point in your contract. Many agencies pause new work once an invoice is 60 days overdue, after written warnings at 14 and 30 days.
Should I charge late payment interest?
Include a late-payment clause in contracts. Whether you enforce it depends on the relationship, but having it gives you leverage.
What payment terms are normal in Nigeria?
For corporate clients, 14–30 days is common, with deposits or milestone payments on projects.
Sources
- Based on standard credit-control practice. Contract clauses should be reviewed by your lawyer.