How to vet a supplier in Lagos before you pay

A supplier can have a polished Instagram page and still be the wrong fit for your order. The task is to establish who you are dealing with, whether they can deliver your specification and how much you could lose if they cannot.

No check guarantees a safe transaction. Several independent checks, a small test and clear terms give you a better basis for deciding than a referral alone.

1. Define the order before you compare suppliers

Write a specification: quantity, materials, dimensions, quality requirements, packaging, destination and delivery date. Ask each supplier to quote against the same brief. Otherwise the cheapest quote may simply omit something you need.

Ask what is included in the price and what can change it. Separate the goods, delivery, installation if relevant and any other charges. Record the quote’s validity period.

2. Establish the supplier’s identity

Request the business’s registered name, registration number where applicable, trading address and a named contact. Cross-check the information against the Corporate Affairs Commission’s official records. Investigate inconsistencies before proceeding.

Registration is evidence of an entity’s existence. It is not proof of product quality, financial strength or honest behaviour. Keep the identity check separate from the capability check.

3. Check that the operation exists

A video call can help you understand a workshop, warehouse or office, but it is not equivalent to an independent visit. For a material order, consider an independently scoped physical check by someone who is not financially tied to the supplier.

Agree what the checker must establish: the address, the person met, the production or stock actually seen, the date and the limits of the visit. A photograph without context is weak evidence. Do not describe documents as authenticated unless a suitable verification was actually completed.

4. Ask for comparable references

Ask for recent customers who bought something similar in size, value and complexity. With permission, contact them directly. Ask whether delivery matched the specification, what happened when something went wrong and whether they would place another order.

Look for patterns across independent information. One glowing recommendation or one unhappy comment should not carry the entire decision. If a supplier refuses every reasonable check, reduce your exposure or walk away.

5. Test the product and the process

Where practical, pay for a sample or a small first order. Assess what arrives, the packaging, delivery performance, communication and handling of corrections. Keep photos and a written comparison against your specification.

A good sample does not prove that a much larger order will be consistent. Ask how quality will be checked during production and who can inspect before dispatch. Use acceptance criteria that both sides can understand.

6. Match payment terms to evidence

Agree a written order covering the parties, specification, price, milestones, delivery, inspection and what happens if work is late or defective. Seek appropriate professional advice for a high-value or complex contract.

Verify payment details through a known contact route, especially if bank details change. Investigate any mismatch between the named supplier and the payee. An explanation should be supported by evidence, not just reassurance.

Avoid paying the full value merely because a supplier offers a discount. Negotiate staged payments where practical, linked to defined deliverables. Never describe a payment as protected or in escrow unless the relevant arrangement really exists and its terms have been checked.

7. Keep a decision record

For each supplier, record the check, source, date, result and unresolved question. Mark claims as unverified until the relevant evidence arrives. Compare at least two realistic options where you can, using the same specification.

The decision is not simply “trusted” or “not trusted”. You may proceed with a small capped order, require further checks or reject the supplier for this job. Limit the commitment to what the evidence can support.

Before the first transfer

Confirm the identity, specification, current quote, payment details, acceptance criteria and your maximum exposure. Make sure someone owns the delivery check and knows how to report a problem.

Explore the free BFA learning and tools, or join a free masterclass to work through demand, numbers and your next move.

Source

Corporate Affairs Commission: Nigeria’s business registry. Supplier-check suggestions above are BFA practical guidance, not a certification of any provider.