02/08/2026
Can You Lend Money to a Friend Without a Written Agreement?
Many people lend money to friends or relatives based on trust alone. While trust is important, it is not always enough when a dispute arises. As a lawyer, my advice is simple: document every loan, no matter how close the relationship is.
A written agreement helps to clearly state:
* The amount borrowed.
* The repayment date.
* Whether interest is payable (if any).
* The obligations of both parties.
Although oral agreements can be legally enforceable in Nigeria, they are often much more difficult to prove in court. If there is no written agreement, you may have to rely on witnesses, bank transfers, chats, emails, or other evidence to establish that the money was a loan and not a gift.
Remember, the court decides cases based on credible evidence, not emotions or goodwill. A simple signed agreement can save you from unnecessary conflict, preserve relationships, and make it easier to enforce your rights if repayment becomes an issue.
A transfer receipt (bank transfer receipt) is certainly evidence, but it is not conclusive proof that the money was a loan.
However, it does not, by itself, prove the purpose of the transfer. If the recipient denies borrowing the money, they might claim it was:
* a gift,
* financial support,
* payment for goods or services,
* or repayment of an earlier debt.
Legal Tip: Before lending money even to your closest friend or family member put the terms in writing and ensure both parties sign it. Protecting yourself is not a sign of distrust; it is a sign of wisdom.
Document today. Protect your money. Protect your peace.