Common Scams to Avoid When Hiring a Contractor in Nigeria

Hiring a contractor for a construction, renovation, or repair project in Nigeria can be a daunting task.

While there are many skilled and reputable contractors in the country, the industry is also riddled with scammers looking to take advantage of unsuspecting clients.

Understanding the most common scams can help you avoid falling victim and ensure you get quality work done. Here are some of the most common scams to watch out for when hiring a contractor in Nigeria.

1. Upfront Payment Scam

Many fraudulent contractors demand a large percentage or even full payment before starting any work. Once they receive the money, they either disappear or deliver substandard work.

How to Avoid It:

• Never pay the full amount upfront. Instead, agree on a payment structure based on project milestones.
• Use escrow services or hold payments in tranches based on completed work.
• Work with reputable contractors who have a track record of reliability.

2. Ghost Contractor Scam

Some people pose as contractors online or through referrals but have no physical office or registered business. They often provide attractive pricing to lure clients and disappear after receiving an initial deposit.

How to Avoid It:

• Verify the contractor’s business registration with the Corporate Affairs Commission (CAC) of Nigeria.
• Ask for references and physically inspect past projects.
• Avoid hiring through informal channels without proper vetting.

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3. Low-Bid Scam

Some contractors provide extremely low quotes to win projects, only to start demanding additional payments midway through the project or delivering poor-quality materials and work.

How to Avoid It:

• Get multiple quotes and compare them to understand the fair market rate.
• Insist on a detailed contract specifying materials, labor costs, and scope of work.
• Beware of deals that seem too good to be true.

4. Fake Materials Scam

A common practice is for dishonest contractors to use substandard materials while charging for high-quality ones. This can lead to structural failures, costly repairs, or even health hazards.

How to Avoid It:

• Personally inspect materials before they are used on your project.
• Purchase materials yourself or involve a trusted third party.
• Request material receipts and verify with suppliers if necessary.

5. Abandoned Project Scam

Some contractors start a project, collect money at different phases, and then abandon the work midway, leaving the client stranded.

How to Avoid It:

• Ensure the contract includes clauses for project timelines and penalties for abandonment.
• Avoid making large payments without corresponding progress in work.
• Work with contractors who have a solid reputation and verifiable past projects.

6. Bait-and-Switch Scam

Here, a contractor presents impressive project samples or showcases previous work done by other professionals as their own to win contracts.

How to Avoid It:

• Visit past project sites and confirm that the contractor was truly involved.
• Speak directly with past clients to verify claims.
• Check online reviews and ask for real-time progress reports from their ongoing projects.

7. Fake Licensing and Credentials

Some contractors falsely claim to have professional certifications, licenses, or affiliations with industry bodies.

How to Avoid It:

• Verify credentials with the issuing bodies.
• Request and verify tax clearance and business registration documents.
• Check if they are affiliated with recognized industry associations such as COREN (Council for the Regulation of Engineering in Nigeria).

8. Hidden Charges Scam

A contractor may initially offer an attractive bid but later introduce hidden costs, making the project significantly more expensive than anticipated.

How to Avoid It:

• Demand a detailed contract outlining all costs.
• Avoid contractors who refuse to provide a written agreement.
• Be wary of vague cost estimates that lack specificity.

9. Unskilled Labor Scam

Some contractors, after winning a project, subcontract the work to unskilled laborers while keeping a large portion of the payment for themselves. This leads to poor-quality work.

How to Avoid It:

• Ensure that the contract specifies who will be working on the project.
• Visit the site regularly to monitor work quality.
• Hire contractors who have a team of certified professionals.

10. Fake Emergency Scam

Some fraudulent contractors create fake emergencies to justify additional charges. For example, they may claim that a structure needs unexpected reinforcement, requiring more money.

How to Avoid It:

• Get an independent expert’s opinion before agreeing to additional expenses.
• Include a contingency budget in your project but ensure it is used only for genuine issues.
• Have a clause in your contract that specifies how unexpected costs should be handled.

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Final Thoughts

Avoiding contractor scams in Nigeria requires vigilance, thorough research, and a structured payment plan.

Always insist on a legally binding contract, verify credentials, and monitor project progress closely.

If possible, seek recommendations from trusted sources and ensure transparency in all dealings.

By taking these precautions, you can safeguard your investment and achieve the quality construction or renovation project you desire.