Before You Send That Payment: A 7-Point Due Diligence Checklist for Nigerian Bulk Deals

Every business owner in Nigeria has heard a version of this story. Someone finds a supplier offering inventory at 30% below market rate. The deal makes sense on paper. The WhatsApp conversation is professional. The proforma invoice looks legitimate. The payment is made. And then — silence. The number stops going through. The "warehouse address" turns out to be a residential building. The money is gone.

It happens more often than anyone admits, because victims rarely report it. The embarrassment is worse than the loss. But here's the thing: in almost every case, there were warning signs. The buyer just didn't know what to check.

Group-buying and bulk purchasing are among the most powerful cost-reduction strategies available to Nigerian SMEs. Done right, they can cut your inventory costs by 22 to 40% — money that drops straight to your bottom line. But the gap between "cheaper supplies" and "lost capital" comes down to one thing: due diligence.

Here's a practical, seven-point checklist you can run before committing to any bulk purchase — whether on the VIJOSAK Deals Marketplace or anywhere else.

The 7-Point Due Diligence Checklist

Verify the Business Registration (CAC)

Every legitimate Nigerian business has a CAC registration number. Request theirs and verify it yourself on the CAC portal. A business that hesitates to share its RC number — or gives you one that doesn't match the company name — is a red flag you cannot ignore.

Action: Use VIJOSAK CAC Search at /cac-search/ — free, instant, no login required.

Check References From Previous Buyers

Ask for contact details of at least two previous buyers — not testimonials on their website, but real people you can call. Ask specific questions: Did the goods arrive on time? Did the quality match the sample? Were there any hidden charges? A seller with nothing to hide will have references ready.

Action: Call — don't just WhatsApp. Voice conversations reveal hesitation and inconsistencies that text hides.

Request and Inspect a Sample

Before committing to a bulk order, request a sample unit. Legitimate suppliers expect this and often have a sample process in place. If they refuse — or insist you must buy the full quantity first — walk away. The cost of a sample is the cheapest insurance you'll ever buy.

Action: If physically inspecting isn't possible, ask for a dated video showing the product with a handwritten note including today's date.

Use Escrow — Not Direct Transfer

This is the single most important rule. Never pay 100% upfront via direct bank transfer. Use an escrow service that holds your payment until you confirm receipt of goods. VIJOSAK Deals Marketplace uses a 10% escrow model: you pay only 10% upfront to secure the deal, and the seller doesn't get paid until buyers confirm delivery.

Action: On VIJOSAK Deals, escrow is automatic. For external deals, insist on a third-party escrow arrangement or staged payments tied to delivery milestones.

Document the Terms in Writing

Verbal agreements and WhatsApp messages don't hold up in a dispute. Before paying, get a written agreement covering: product specifications, quantity, unit price, delivery timeline, location, and what happens if either party defaults. It doesn't need to be 20 pages — a clear one-page agreement signed by both parties is enough.

Action: Use the VIJOSAK Workspace to generate a simple supply agreement. Describe what you need and download a ready-to-sign PDF in minutes.

Verify the Bank Account Details

Confirm that the bank account name matches the business name on the CAC registration. Be wary of personal accounts for business transactions — while some sole proprietors use personal accounts legitimately, a mismatch between the company name and the account name should prompt additional verification.

Action: Send a small test transfer (₦100) and confirm the account name that appears in your banking app before sending the full amount.

Start Small, Then Scale

Even if the unit economics get better at higher volumes, your first transaction with any supplier should be your smallest. Treat it as a paid verification. Once the supplier proves they can deliver on time and to specification, you can increase your order size confidently. A supplier who pushes you to go big on the first order is prioritising their cash flow over your trust.

Action: Set a maximum first-order value — we recommend no more than ₦200,000 for a first transaction with any new supplier, regardless of how good the deal looks.

Why Escrow Changes Everything

The seven checks above are powerful. But the most impactful one — number 4 — deserves more attention, because escrow fundamentally changes the risk equation in Nigerian commerce.

In a traditional bulk purchase, the buyer carries all the risk. You send the full payment. You wait. You hope. The seller has your money and you have nothing but a promise. If the goods don't arrive, your only recourse is a lengthy, expensive legal process that most SMEs can't afford to pursue.

Escrow flips this. With VIJOSAK's model:

Buyers pay only 10% upfront to lock in the deal. The remaining 90% stays in your account until delivery.
The seller sees the commitment is real — 10% from multiple buyers signals serious demand. They can proceed with confidence.
Payment is only released when buyers confirm receipt. If the goods don't arrive or don't match the description, your money is protected.
If the deal falls through, your escrow is refunded. No chasing. No courtroom. No "Uncle, please I'll pay next week."

10%

That's all you put down on VIJOSAK Deals. The remaining 90% stays in your account until you confirm the goods have arrived and match what was promised.

This isn't just a convenience feature. For Nigerian SMEs operating on thin margins, it's the difference between "we can try this supplier" and "it's too risky to switch from who we know." Escrow makes competition possible. It lets new, legitimate suppliers prove themselves without asking buyers to take a leap of faith.

Red Flags That Should Make You Pause Immediately

Beyond the seven-point checklist, there are warning signs that experienced buyers learn to recognise. Any one of these should make you slow down and verify harder:

Pressure to pay quickly. "The price is only valid for 24 hours" or "three other buyers are ready to pay." Urgency that benefits only the seller is a classic pressure tactic.
No physical address. A supplier who won't share a verifiable location — not a PO Box, not a "suite" in a residential area, but a real place you can visit or verify — is hiding something.
WhatsApp-only communication. Professional suppliers have email, phone, and often a website. Someone who insists on WhatsApp-only communication is harder to trace if things go wrong.
Prices significantly below market. If a deal looks too good to be true, run checklist items 1 through 7 twice. There's almost always a reason.
Refusal to use escrow. A legitimate seller with quality goods has nothing to fear from escrow. If they insist on direct payment, ask yourself what they're afraid of you discovering after delivery.

The most expensive deal is the one where you lose both the discount and the capital. Due diligence costs time. No due diligence costs everything.

Common sentiment among Nigerian SME owners who have experienced supplier fraud

How VIJOSAK Deals Marketplace Builds Trust In

Every feature of the Deals Marketplace was designed around one question: "How do we make it safe for a Nigerian business owner to transact with someone they've never met?"

Here's what that looks like in practice:

Seller KYC verification — before listing, sellers submit BVN, government ID, and CAC documents for verification.
Deal inspection workflow — independent inspectors can verify inventory exists before a deal goes live.
10% escrow on every transaction — automatic, non-negotiable, built into the platform.
Dispute resolution process — if something goes wrong, there's a structured process, not just a WhatsApp argument.
Buyer confirmation triggers payment — sellers get paid when buyers say "I received what I paid for," not before.

You don't need to be a lawyer or a detective to transact safely. The platform handles the verification so you can focus on evaluating the deal itself — the price, the product, the timeline.

Your Move: Protect Your Next Purchase

Whether you're buying on VIJOSAK Deals or negotiating directly with a new supplier in Kano, the seven checks in this article apply. Bookmark this page. Run through the checklist before your next bulk payment. Make it a habit, like checking the exchange rate before quoting a dollar-denominated price.

The goal isn't to make you suspicious of every seller. It's to make you confident in the ones who pass. When a supplier clears all seven checks — verified CAC, solid references, product sample, escrow-ready, documented terms, matching bank details, and no pressure to oversize your first order — you've found someone worth building a long-term relationship with.

And those relationships? They're worth far more than the margin you save on any single deal.

Frequently Asked Questions

Q1: What if the seller refuses to provide their CAC registration number?

Walk away. A legitimate business has nothing to hide. If they won't share their RC number, they're either unregistered or hiding something — and neither is a risk you should take with your working capital.

Q2: How does the 10% escrow work in practice?

When you indicate interest in a deal on the VIJOSAK Deals Marketplace, you pay 10% of the deal value via Paystack. That money is held securely. Once the minimum number of buyers is reached and the deal executes, the seller delivers the goods. When you confirm receipt, the seller gets paid. If the deal doesn't reach its minimum or the seller fails to deliver, your 10% is refunded.

Q3: Can I use this checklist for international suppliers too?

Yes, with modifications. For international suppliers, check their registration with their country's equivalent of CAC, use a letter of credit or trade escrow service for payments, and always engage a clearing agent you've verified independently — not one recommended by the supplier.

Q4: What if I've already been scammed by a supplier?

Document everything — all chat logs, payment receipts, invoices, and communication. Report to the EFCC and the police. Notify your bank immediately. While recovery is difficult, documentation makes it possible. And going forward, use escrow for every transaction — it prevents the same thing from happening twice.