Sales are up but the money isn't: how to find the gap in your Nigerian business

The weekly update says sales were strong. The photos show a busy shop. But when you check the bank statement, less money has arrived than you expected, and you are not sure who to ask or what to ask for.

This is one of the most common worries I hear from owners who run a business in Nigeria from the UK. It is also one of the easiest to handle badly. Accuse too early and you can lose a good manager over an explainable difference. Ignore it and a small leak becomes a habit.

A gap in the figures is a question to investigate, not a verdict.

Start with one fictional example

Imagine you own a phone-accessories shop in Abuja. Last month the sales record shows ₦2.1m. The business bank account received ₦1.6m. That leaves ₦500k to explain.

Before drawing any conclusion, list the ordinary reasons money can be recorded as sold but not yet banked. Most gaps are partly or wholly explained by one of these.

1. Payment timing

Card and transfer payments can land days after the sale. POS settlements, bank transfers made late on a Friday and payments through apps may fall into the next statement period. Compare the dates, not just the monthly totals.

2. Credit sales

Some customers pay later. Trusted regulars, businesses buying in bulk or friends of staff may take goods on credit. Ask for a list of who owes money, how much and since when. If no such list exists, that is your first finding.

3. Authorised cash spending

Shops often pay for transport, fuel, small repairs or staff meals in cash before anything reaches the bank. That can be legitimate. The question is whether each payment was approved, recorded and supported by a receipt or note.

4. Stock movements

If goods were returned, swapped, damaged or moved between branches, the sales record may not match what was actually sold. Compare opening stock, purchases, sales and closing stock. A count that does not reconcile tells you where to look next.

5. Recording errors

Duplicated entries, sales recorded in the wrong week and simple arithmetic mistakes are more common than most owners expect, especially when records are kept in notebooks or WhatsApp messages.

What to ask for

You do not need to fly to Nigeria to start. Ask for:

• the sales record for the period, with dates
• bank and POS statements for the same period
• a list of cash payments made from takings, with receipts where available
• a list of customers who owe money
• the stock count at the start and end of the period

Then match them line by line. Whatever remains unexplained after timing, credit, approved spending, stock and errors is your real gap. It is usually much smaller than the number you started with.

Agree the fix, not just the finding

Once you understand the gap, put three things in place:

• Clear ownership. Who records sales, who banks the money, who approves spending and who checks the records. One person should not do all four without a second check.
• A short weekly report. Sales, money banked, cash spent, money owed and stock. Every number should link to a source record.
• A rule for cash. Decide what can be paid from takings, up to what amount, and what needs your approval first.

These are not signs of mistrust. They protect your staff as much as they protect you, because a clear record is the fastest way to show that everything was handled properly.

When to get help

If the records are scattered, the gap keeps returning or the conversation has become personal, an independent review can help. We look at the evidence, separate what is known from what is assumed, and agree corrections with clear owners.

See how we help established business owners, or get the free "Can this business run without you?" worksheet to review your controls first.

The example above is fictional and for illustration only. It is general business guidance, not legal or accounting advice.