nigeria contract australian firm financially ruined

We have received a call from the Managing Director of an Australian Engineering Firm who completed a major contract in Nigeria.

The work involved a large outlay of capital. The company borrowed extensively from the bank in order to finance the lucrative contract. The work was completed 12 months ago but the Firm has not yet received payment.

As a result the Managing Director has lost everything including his family home.

When doing business overseas, make sure to hire the services of and international financial consultant who will help you set up iron clad letter of credits which guarantee payment. If you are unable to obtain a guarantee you should insist in a 50% deposit or some other surety. There is not much point in winning a major contract that will not pay.

THE FIVE RULES FOR DOING BUSINESS WITH NIGERIA (Courtesy of The 419 Coalition)|

1. NEVER pay anything up front for ANY reason.
2. NEVER extend credit for ANY reason.
3. NEVER do ANYTHING until their check clears.
4. NEVER expect ANY help from the Nigerian Government.
5. NEVER rely on YOUR Government to bail you out.

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