Every Abuja entrepreneur I’ve met has at least one horror story that starts with the words: “We signed an agreement, but…”
Contracts are supposed to protect you, but in Nigeria, they often end up being the very reason businesses lose money, partnerships, or even their entire company. And the painful part? Most of these disasters are completely avoidable.
Let me break it down with real patterns I’ve seen in Abuja and beyond.
Mistake 1: Signing without clarity.
Too many business owners rush into deals because they’re excited. Someone says, “Don’t worry, we’ll sort the details later,” and before you know it, you’ve signed an agreement that doesn’t clearly define roles, deliverables, or timelines. A friend of mine in Abuja lost ₦18 million in a supply contract because the “deadline” was never properly written in. The supplier dragged deliveries for months, and legally, there was nothing to enforce.
Mistake 2: Using copy-and-paste contracts.
I’ve seen startups use contracts pulled off Google or borrowed from a friend. Sounds smart until you realize the clause that saves you in one industry could kill you in another. An IT firm once used a “partnership” agreement designed for real estate. When disputes arose, the court tossed half the terms out because they were irrelevant. They wasted money on a trial that never stood a chance.
Mistake 3: Skipping dispute resolution clauses.
Litigation in Nigeria isn’t just expensive, it’s slow. Cases drag for years. A solid arbitration clause can save you time and money, but most business owners overlook it. One Abuja construction company is still tied up in court over a ₦250 million project dispute from 2019. Meanwhile, a competitor with similar issues resolved theirs in arbitration in under six months.
Mistake 4: Ignoring local law requirements.
Here’s something many Nigerians forget: a contract that works in Lagos may not work in Accra or Johannesburg. Cross-border deals need to be localized. A Nigerian exporter signed a contract under “Nigerian law” while shipping goods to Kenya. When things went wrong, the Kenyan court basically said: “Why are you bringing Nigerian law here?” Case dismissed. Losses? Over $1.2 million.
Mistake 5: Not involving lawyers early.
I know, lawyers cost money. But so do mistakes. Too many businesses call us only after the damage is done. At that point, fixing the problem is usually more expensive than preventing it in the first place. Think of it like hiring a mechanic only after your car’s engine explodes.
Here’s the truth: contracts aren’t “just paperwork.” They’re the backbone of business in Nigeria. And if you don’t take them seriously, you’re walking into a boxing match blindfolded.
At Polaris Solicitors, we help businesses draft, review, and negotiate contracts that actually protect them, not sink them. Before you sign your next big deal, let’s make sure you’re covered. Call 08034358887, WhatsApp 09020485947, or email legal@polarissolicitors.com.
Because in Nigeria, the most expensive mistake you can make is assuming a contract will protect you… when it won’t.