Debt Collection in Niger

The debt collection process in Niger begins with an assessment of the debtor’s solvency, their business sector, the history of the business, the availability of documentary evidence of the debt, ongoing court cases and enforcement proceedings, and the possibility of disputing the debt. This assessment determines the strategy that will be used on behalf of the client in the collection process.

If the debtor has no ongoing court cases or outstanding judgments for debt collection and is actively engaged in commercial activities, then it is advisable to use the out-of-court debt collection stage.

This stage involves active negotiations with the debtor in order to reach an agreement on the payment of the creditor’s claims or other possible settlement options (e.g. return of goods, transfer of the debt to a third party, exchange of services or goods).

Interaction with the debtor begins immediately after sending a notice by mail, email, phone or instant messengers. This process involves intensive communication with the debtor in order to exert constant pressure. The main objective is to establish contact with key decision makers to achieve early recovery of the debt.

The average time for informal out-of-court collection is up to 60 days (except in cases where a debt repayment plan has been agreed upon). If this stage does not produce the expected results or after an initial analysis it becomes clear that it is not applicable, it is necessary to proceed to collection through the courts.

The Republic of Niger is a member of OHADA (Organization for the Harmonization of Business Law in Africa), which includes nine approved Uniform Legal Acts applicable to all member countries of the above-mentioned organization. Therefore, the procedures for judicial debt collection, enforcement and bankruptcy are mainly regulated by the provisions of the relevant Uniform Acts.

Before initiating judicial collection, it is worth paying attention to the limitation period. The general limitation period under the national legislation of Niger is 30 years. According to the provisions of the general commercial law OHADA, obligations arising from commercial transactions between merchants or between merchants and non-merchants expire after five years. The effects of the expiration of the limitation period are applied in the court of first instance and on appeal only at the request of the debtor. The limitation period is interrupted by the recognition of the creditor’s claims by the debtor. After the interruption, the limitation period begins to run anew. The limitation period may be shortened or extended by agreement of the parties. However, it cannot be shortened to less than one year or extended to more than ten years. The parties may also, by mutual agreement, supplement the list of reasons for the suspension and interruption of the limitation period.

Judicial debt collection in the Republic of Niger is carried out in the ordinary judicial procedure and by order of payment.

The ordinary judicial procedure begins with the filing of a claim in court, after which the court, if the claim meets the procedural requirements, issues a summons to summon the defendant. The summons must be served at least eight days before the hearing. This period is extended by distance. If the debtor is outside the territorial jurisdiction of the court, the period is extended by one month; if the debtor is outside the territory of the Republic of Niger, the period is extended by two months.

If, for special reasons, the summons cannot be served within the specified period, the bailiff must contact the court secretary, who will set a new date for appearance at the direction of the president of the court.

On the day of the hearing, the president of the court shall ensure that sufficient time has elapsed since the summons was served to enable the party against whom the summons was issued to prepare his defence. The case shall then be heard immediately, as it stands, even without written statements. However, the president of the court may adjourn the case to another hearing if he deems it necessary or, if necessary, refer the case to the judge in charge of preparing the case. No case may be adjourned more than once.

The chairman of the court or the judge to whom the case has been delegated for consideration shall hold a discussion of the status of the case with the parties present or their lawyers. The chairman of the court shall refer the case for consideration on the merits if, based on the explanations of the parties or their lawyers, as well as on the basis of the exchange of applications and the documents submitted, he or she considers that the case is ready for consideration on the merits. He or she shall also refer the case for a hearing if the defendant has not appeared, except in cases where the court orders a second notice to the defendant. In any of the above cases, the chairman of the court shall declare the preparation of the case complete and shall set a date for the hearing, which may take place on the same day.

If the case is not ready for consideration on the merits, the chairman of the court shall refer it to the judge preparing the case for preparatory activities, such as: questioning the parties, exchanging opinions, conducting conciliation procedures, summoning and examining witnesses, appointing and conducting an expert examination, and requesting additional documents. After completion of the preparatory activities, the case shall be returned to the chairman of the court for consideration on the merits.

At the hearing on the merits, the court evaluates the results of the preliminary measures and holds a final debate between the parties, after which the final decision is made. When making a decision, the judge may, taking into account the good faith of the debtor and the economic circumstances, grant the debtor a reasonable grace period of not more than one year to pay off the debt.

The procedure for issuing a payment order is regulated by the OHADA Debt Settlement Act and is used to collect a debt arising from a contract or a negotiable bill and a check. To implement this procedure, the creditor must file an application for a payment order with the court along with documents confirming the debt. If, after reviewing the documents submitted, the application is found to be fully or partially justified, the court issues an order for payment of the amount requested. If the court rejects the application in whole or in part, its decision is not subject to appeal by the creditor. The only remedy for the creditor in this case is to file a claim under the ordinary procedure.

A certified copy of the application and the order for payment must be served on the debtor within three months. Otherwise, the order will be invalid. Upon receipt of the said documents, the debtor must either pay the debt within 15 days or file an objection within the same period. If the debtor does not file an objection, the order for payment acquires the force of an enforcement document. If the debtor files an objection with the court, the judge attempts to reconcile the parties. If reconciliation is achieved, the judge draws up a reconciliation act, which is signed by the parties. One copy of this act contains the enforcement formula. If reconciliation is unsuccessful, the court immediately considers the case and issues a decision on the claim for collection, even in the absence of the debtor who filed the objection. The court’s decision in this case has the force of a decision made following the results of adversarial proceedings. The court’s decision made following the objection replaces the order for payment.

The decision of the court of first instance may be appealed to the court of appeal within one month from the date of the contested decision. The appeal period is extended by one month if the interested party is outside the location of the court of first instance and by two months if outside the territory of the Republic of Niger. The decision of the Court of Appeal may be appealed to the Supreme Court of Niger within one month from the date of the decision contested. The period for appeal shall be extended by the application of the rules of distance specified above. During the appeal period, the contested decision may be suspended at the request of the interested party if the execution of the decision would cause irreparable harm. The decision of the Supreme Court is final and may not be appealed further.

Once the judgment has entered into legal force, the creditor must initiate enforcement proceedings. Within the framework of enforcement of the judgment, the creditor’s claims may be satisfied by seizing and writing off funds from the debtor’s accounts; seizing the movable and immovable property of the debtor with their subsequent sale; seizing and confiscating securities, seizing and confiscating the debtor’s property held by third parties.

An alternative method of debt collection is the initiation of bankruptcy proceedings against the debtor. In the Republic of Niger, this procedure is regulated by the provisions of the Uniform Insolvency Law (OHADA). The creditor may initiate this procedure if its claims are undisputed, liquid and payable. If the debtor’s assets are insufficient to fully satisfy the creditors’ claims, it is possible to annul transactions made by the debtor with the intent to cause damage to creditors. Such transactions, concluded between the suspension of payments and the opening of bankruptcy proceedings, include: gratuitous transfer of property; agreements where the debtor’s obligations significantly exceed the obligations of the other party; early repayment of debts that are not yet due; provision of security for previously incurred debts; as well as any payment transactions in which the other party knew about the financial insolvency of the debtor. The cancellation of such transactions allows the return of property or other assets lost by the debtor, which increases the liquidation estate to satisfy the claims of creditors and cover the costs associated with the bankruptcy procedure.

If you have any questions or need support on international debt collection in Niger, our company is ready to provide its expert assistance to effectively resolve your financial issue. Contact us to get additional information and professional support from specialists of the leading debt collection agency.

# DEBT COLLECTION AGENCY NIGER

21.11.2024

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