The Money Claim Letter is a critical document in Nigerian debt recovery practice, serving as a formal demand for payment and a prerequisite to legal action. This document is typically used when informal attempts to recover a debt have been unsuccessful, and the creditor needs to escalate the matter through formal channels. The letter must be drafted in compliance with Nigerian legislation, including the Sheriffs and Civil Process Act and state-specific Civil Procedure Rules. It should clearly state the amount owed, provide evidence of the debt, and give the debtor a reasonable timeframe to respond or make payment. The document is designed to establish a clear record of the demand and can be used as evidence in subsequent legal proceedings if the debt remains unpaid. The Money Claim Letter can be used for various types of debts, from commercial transactions to personal loans, and must include specific elements required by Nigerian law to be legally effective.

1. Sender's Details: Full name, address, and contact information of the creditor

2. Date: Current date of the letter

3. Recipient's Details: Full name and address of the debtor

4. Subject Line: Clear indication that this is a formal demand for payment

5. Debt Details: Specific amount owed, date the debt was incurred, and reference numbers

6. Basis of Claim: Description of how the debt arose and the legal basis for the claim

7. Payment History: Summary of any partial payments made and remaining balance

8. Demand for Payment: Clear statement of the amount demanded and payment deadline

9. Payment Instructions: Bank details or other payment methods accepted

10. Legal Warning: Statement of intention to take legal action if payment is not received