HIREPURCHASEACT

ARRANGEMENTOFSECTIONS
Preliminary
SECTION
1.TransactionsregulatedbythisAct.
Operationandterminationofagreements,etc.
2. Requirementsrelatingtohirepurchaseandcreditsaleagreements.
3. Avoidanceofcertainprovisionsinagreements.
4. Conditionsandwarrantiesimpliedinhirepurchaseagreements.
5. PowerofMinistertoregulatetermsofhirepurchaseandcreditsale
transactions.
6. Dutyofpartiestofurnishinformation.
7. Appropriationofpaymentsunderhirepurchaseagreements.
8. Rightofhirertodeterminehirepurchaseagreement.
Recoveryofgoods,etc.
9. Restrictiononrecoveryofgoodsotherwisethanbyaction.
10. Powersofcourtinactionstorecovergoods.
11. Applicationofsections9and10ofthisActtosuccessivehirepurchaseagreementsbe
tweensameparties.
12. Effectofsuspensionoforderfordeliveryupofgoods.
13. Powersofcourtastopaymentsarisingondeterminationofhirepurchaseagreements.
14. Adversepossessionandconversion.
Controlofadvertisements
15. Advertisementssubjecttocontrol.
16. Informationtobeincludedinadvertisements.
17. Penalties.
Miscellaneousandgeneral
18. PowerofMinistertorequireinformationabouthirepurchasebusiness,etc.
19. PowerofMinistertoexcludegoods,etc.,fromoperationoftheAct.
20. Interpretation,etc.
21. Shorttitleandextent.
SCHEDULE
NoticeforinclusioninHirepurchaseagreement

HIREPURCHASEACT
AnActtomakeprovisionwithrespecttohirepurchaseandcreditsaletransactions
andadvertisementsrelatingthereto;andforpurposesconnectedwiththemat
tersaforesaid.
[1965No.3.1970No.23.]
[IstOctober,1968]
[Commencement.]
Preliminary
1. TransactionsregulatedbythisAct
Subjecttotheprovisionsofsection19ofthisAct,theprovisionsofthisAct(other
thantheprovisionsrelatingtothecontrolofadvertisements)shallapplyinrelationto
[L.N.90of1968.]
(a) allhirepurchaseagreementsandcreditsaleagreements(otherthanagreements
inrespectofmotorvehicles)underwhichthehirepurchasepriceortotalpurchase
price,asthecasemaybe,doesnotexceedtwothousandnaira;and
(b)allsuchagreementsinrespectofmotorvehicles,irrespectiveofthehire
purchasepriceorthetotalpurchaseprice,
beingagreementsmadeafterthecommencementofthisAct;andtheexpressions"hire
purchaseagreement"and"creditsaleagreement"inthefollowingprovisionsofthisAct
shallbeconstruedaccordingly.
Operationandterminationofagreements,etc.
2. Requirementsrelatingtohirepurchaseandcreditsaleagreements
(1)Beforeanyhirepurchaseagreementisenteredintoinrespectofanygoods,the
ownershallstateinwritingtotheprospectivehirer,otherwisethaninthenoteormem
orandumoftheagreement,apriceatwhichthegoodsmaybepurchasedbyhimfor
cash(inthissectionreferredtoasthe"cashprice"):
Providedthatthissubsectionshallbedeemedtohavebeensufficientlycomplied
with
(a) ifthehirerhasinspectedthegoodsorlikegoodsandatthetimeofhisinspection
ticketsorlabelswereattachedtoordisplayedwiththegoodsclearlystatingthe
cashpriceeitherofthegoodsasawholeorofallthedifferentarticlesorsetsof
articlescomprisedinthegoods;or
(b) ifthehirerhasselectedthegoodsbyreferencetoacatalogue,pricelistor
advertisementwhichclearlystatedthecashpriceeitherofthegoodsasawholeor
ofallthedifferentarticlesorsetsofarticlescomprisedinthegoods.

(2)Anownershallnotbeentitledtoenforceahirepurchaseagreementoranycon
tractofguaranteerelatingtotheagreementoranyrighttorecoverthegoodsfromthe
hirer,andnosecuritygivenbythehirerinrespectofmoneypayableunderthehire
purchaseagreementorgivenbyaguarantorinrespectofmoneypayableundera
contractofguaranteerelatingtotheagreementshallbeenforceableagainstthehireror
guarantor,unlesstherequirementspecifiedinsubsection(1)ofthissectionhasbeen
compliedwithand
(a) anoteormemorandumoftheagreementismadeandsignedbythehirerand
byoronbehalfofallotherpartiestotheagreement;and
(b) thenoteormemorandumcontains
(i) astatementofthehirepurchasepriceandofthecashpriceofthe
goodstowhichtheagreementrelatesandoftheamountofeachof
theinstalmentsbywhichthehirepurchasepriceistobepaidandof
thedate,orthemodeofdeterminingthedate,uponwhicheach
instalmentispayable;and
(ii)astatementofthedepositpaid;and
(iii) astatementofthetruerateofinterestcalculatedinsuchmanneras
theMinistermaybyregulationspublishedintheFederalGazette
prescribe;and
(iv) alistofthegoodstowhichtheagreementrelatessufficienttoidentify
them;and
(c) thenoteormemorandumcontainsanotice,whichisatleastasprominentas
therestofthecontentsofthenoteormemorandum,inthetermsprovided
bytheScheduletothisAct;and
[Schedule.]
(d) acopyofthenoteormemorandumisdeliveredorsenttothehirerwithin
fourteendaysofthemakingoftheagreement:
Providedthat,ifthecourtissatisfiedinanyactionthatafailuretocomplywith
therequirementspecifiedinsubsection(1)ofthissectionoranyrequirementspecified
inparagraph(b),(c)or(d)ofthissubsectionhasnotprejudicedthehirer,andthatit
wouldbejustandequitabletodispensewiththerequirement,thecourtmay,subjectto
anyconditionsthatitthinksfittoimpose,dispensewiththatrequirementforthe
purposesoftheaction.
(3)Theprovisionsofthissectionshallapplytocreditsaleagreementsastheyapply
tohirepurchaseagreements,butasif
(a) foranyreferencetotheowner,hirerorhirepurchasepricetherewere
substitutedrespectivelyareferencetotheseller,buyerandtotalpurchase
price;and
(b) paragraph(c)ofsubsection(2)ofthissection,andthereferencetothatpara
graphintheprovisotothesubsection,wereomitted.
3. Avoidanceofcertainprovisionsinagreements
Thefollowingprovisionsinanagreementshallbevoid,thatistosay,anyprovi
sion
(a) wherebyanownerorapersonactingonhisbehalfisauthorisedtoenteruponany
premisesforthepurposeoftakingpossessionofgoodswhichhavebeen
letunderahirepurchaseagreementorisrelievedfromliabilityforanysuch
entry;or
(b) wherebytherightconferredonahirerbythisActtodeterminethehire
purchaseagreementisexcludedorrestricted,oranyliabilityinadditiontothe
liabilityimposedbythisActisimposedonahirerbyreasonofthetermination
ofthehirepurchaseagreementbyhimunderthisAct;or
(c) wherebyahirer,afterthedeterminationofthehirepurchaseagreementor
thebailmentinanymannerwhatsoever,issubjecttoaliabilitywhichexceeds
theliabilitytowhichhewouldhavebeensubjectiftheagreementhadbeen
determinedbyhimunderthisAct;or
(d) wherebyanypersonactingonbehalfofanownerorsellerinconnectionwith
theformationorconclusionofahirepurchaseorcreditsaleagreementis
treatedasordeemedtobetheagentofthehirerorbuyer;or
(e) wherebyanownerorsellerisrelievedfromliabilityfortheactsordefaultsof
anypersonactingonhisbehalfinconnectionwiththeformationorconclusion
ofahirepurchaseorcreditsaleagreement;or
(f) wherebyahirerorbuyerisrequiredtoavailhimselfoftheservices,asinsurer
orrepairerorinothercapacitywhatsoever,ofapersonotherthanaperson
selectedbythehirerorbuyerintheexerciseofhisunfettereddiscretion.
4. Conditionsandwarrantiesimpliedinhirepurchaseagreements
(1)Ineveryhirepurchaseagreementthereshallbe
(a) animpliedwarrantythatthehirershallhaveandenjoyquietpossessionofthegoods;
(b)animpliedconditiononthepartoftheownerthatheshallhavearighttosell
thegoodsatthetimewhenthepropertyistopass;
(c) animpliedwarrantythatthegoodsshallbefreefromanychargeorencum
branceinfavourofanythirdpartyatthetimewhenthepropertyistopass;
(d) exceptwherethegoodsareletassecondhandgoodsandthenoteormem
orandumoftheagreementmadeinpursuanceofsection2ofthisActcontains
astatementtothateffect,animpliedconditionthatthegoodsshallbeofmer
chantablequality,sohoweverthatnosuchconditionshallbeimpliedbyvirtue
ofthisparagraphasregardsdefectsofwhichtheownercouldnotreasonably
havebeenawareatthetimewhentheagreementwasmadeor,ifthehirerhas
examinedthegoodsorasampleofthem,asregardsdefectswhichtheexami
nationoughttohaverevealed.
(2)Wherethehirerexpresslyorbyimplicationmakesknowntheparticularpurpose
forwhichthegoodsarerequiredthereshallbeanimpliedconditionthatthegoodsshall
bereasonablyfitforthatpurpose.
(3)Thewarrantiesandconditionssetoutinsubsection(1)ofthissectionshallbeim
pliednotwithstandinganyagreementtothecontrary,andtheownershallnotbe
entitledtorelyonanyprovisionintheagreementexcludingormodifyingthecondition
setoutin

subsection(2)ofthissectionunlessheprovesthatbeforetheagreementwasmadethe
provisionwasbroughttothenoticeofthehireranditseffectmadecleartohim.
(4)Nothinginthissectionshallprejudicetheoperationofanyotherenactmentor
ruleoflawwherebyanyconditionorwarrantyistobeimpliedinahirepurchaseagree
ment.
5.PowerofMinistertoregulatetermsofhirepurchaseandcreditsaletransac
tions
TheMinistermaybyregulationspublishedintheFederalGazettemakesuchprovi
sionasheconsidersexpedient
(a) forrestrictingthesums(includinginparticularratesofinterest)which
maybechargedinconnectionwithhirepurchaseandcreditsale
transactionsinadditiontothepurchasepriceandprescribingthe
methodsbywhichthosesumsandpurchasepricesaretobedetermined
forthepurposesoftheregulations;
(b) forprohibitinghirepurchaseandcreditsaletransactionsunlessinitialcash
paymentsaremadeforthepurposesofthetransactionsofsuchamountsandat
suchtimesasmaybeprescribedbytheregulations;
(c) forsecuringthattheperiodsduringwhichpaymentsfalltobemadeinpursuance
ofhirepurchaseorcreditsaleagreementsshallnotexceedtheperiodsprescribed
bytheregulations;and
(d) forprescribingpenaltiesforoffencesagainsttheregulationsnotexceedinga
fineofonethousandnairainrespectofanyparticularoffence.
6. Dutyofpartiestofurnishinformation
(1)Atanytimebeforethefinalpaymenthasbeenmadeunderahirepurchase
agreementorcreditsaleagreement,anypersonentitledtoenforcetheagreement
againstthehirerorbuyershall,withinfourteendaysfromthedateonwhichhereceives
arequestinwritingfromthehirerorbuyerandthehirerorbuyerhastenderedtohim
thesumoftwentykoboforexpenses,supplytothehirerorbuyeracopyofany
memorandumornoteoftheagreement,togetherwithastatementsignedbythesaid
personorhisagentshowing I
(a) theamountpaidbyoronbehalfofthehirerorbuyer;
(b) theamountduebutunpaidundertheagreement,andthedateonwhicheach
unpaidinstalmentbecamedue,andtheamountofeachsuchinstalment;and
(c) theamountwhichistobecomepayableundertheagreement,andthedateor
themodeofdeterminingthedateuponwhicheachfutureinstalmentistobe
comepayable,andtheamountofeachsuchinstalment.
(2)Intheeventofafailurewithoutreasonablecausetocomplywithsubsection(1)
ofthissection,then,whilethedefaultcontinues
(a) nopersonshallbeentitledtoenforcetheagreementagainstthehireror
buyerortoenforceanycontractofguaranteerelatingtotheagreementto
enforceanyrighttorecoverthegoodsfromthehirer;and
(b) nosecuritygivenbythehirerorbuyerinrespectofmoneypayableunder
theagreementorgivenbyaguarantorinrespectofmoneypayableundera

contractofguaranteerelatingtotheagreementshallbeenforceableagainst
thehirerorbuyerortheguarantor,
and,ifthedefaultcontinuesforaperiodofonemonth,thedefaultershallbeguiltyof
anoffenceandliableonsummaryconvictiontoafineofanamountnotexceeding
twentynaira.
(3)Wherebyvirtueofahirepurchaseagreementahirerisunderadutytokeepthe
goodscomprisedintheagreementinhispossessionorcontrol,thehirershall,onreceiptofa
requestinwritingformtheowner,informtheownerwherethegoodsareatthetimewhenthe
informationisgivenor,ifitissentbypost,atthetimeofposting.
(4)Ifahirerfailswithoutreasonablecausetogivethesaidinformationwithinfour
teendaysfromthedateofthereceiptofarequestundersubsection(3)ofthissection,heshall
beguiltyofanoffenceandliableonsummaryconvictiontoafinenotexceeding
twentynaira;andifanyinformationgivenbyoronbehalfofahirerinpursuanceofa
requestunderthatsubsectionistohisknowledgefalseinamaterialparticular,thehirer
shallbeguiltyofanoffenceandliableonsummaryconvictiontoafinenotexceeding
onehundrednaira.
7. Appropriationofpaymentsunderhirepurchaseagreements
Ahirerwhoisliabletomakepaymentsinrespectoftwoormorehirepurchase
agreementstothesameownershall,notwithstandinganyagreementtothecontrary,be
entitled,onmakinganypaymentinrespectoftheagreementswhichisnotsufficientto
dischargethetotalamountthendueunderalltheagreements,toappropriatethesumsopaid
byhiminortowardsthesatisfactionofthesumdueunderanyoneoftheagree
ments,orinortowardsthesatisfactionofthesumsdueunderanytwoormoreofthe
agreementsinsuchproportionsashethinksfit;andifhefailstomakeanysuchappro
priationasaforesaidthepaymentshallbyvirtueofthissectionbeappropriatedtowards
thesatisfactionofthesumsdueundertherespectivehirepurchaseagreementsinthepro
portionswhichthosesumsbeartooneanother.
8. Rightofhirertodeterminehirepurchaseagreement
(1)Ahirershall,atanytimebeforethefinalpaymentunderahirepurchaseagree
mentfallsdue,beentitledtodeterminetheagreementbygivingnoticeofterminationinwriting
toanypersonentitledorauthorisedtoreceiveanysumspayableundertheagreementandshall,
ondeterminingtheagreementunderthissection,beliable,withoutprejudicetoanyliability
whichhasaccruedbeforethetermination,topaytheamount,ifany,bywhichonehalfofthe
hirepurchasepriceexceedsthetotalofthesumspaidandthe
sumsdueinrespectofthehirepurchasepriceimmediatelybeforethetermination,or
suchlessamountasmaybespecifiedintheagreement.
(2)Whereahirepurchaseagreementhasbeendeterminedunderthissection,the
hirershall,ifhehasfailedtotakereasonablecareofthegoods,beliabletopaydamages
forthefailure.
(3)Inanycircumstanceswhere
(a) ahirerdeterminesorhasdeterminedahirepurchaseagreementunderthissec
tion,heshall,immediatelyuponthedetermination,returnthegoodstothe
ownerandsettlealloutstandingliabilitiessubjectasprescribedintheforego
ingprovisionsofthissection;and
[1970No.23.]
(b) havingdeterminedahirepurchaseagreement,thehirerwrongfullyretains
possessionofthegoods,theninanyactionbroughtbytheownertorecover
possessionofthegoodsfromthehirer,thecourtshall,unlessitissatisfiedthat
havingregardtothecircumstancesitwouldnotbejustandequitablesotodo,
orderthegoodstobedeliveredtotheownerwithoutgivingthehireranoption
topaythevalueofthegoods.
(4)Nothinginthissectionshallprejudiceanyrightofahirertodetermineahire
purchaseagreementotherwisethanbyvirtueofthissection.
Recoveryofgoods,etc.
9. Restrictiononrecoveryofgoodsotherwisethanbyaction
(1)Wheregoodshavebeenletunderahirepurchaseagreementandtherelevantproportion
ofthehirepurchasepricehasbeenpaid(whetherinpursuanceofajudgmentor
otherwise)ortenderedbyoronbehalfofthehireroranyguarantor,theownershallnot
enforceanyrighttorecoverpossessionofthegoodsfromthehirerotherwisethanby
actionandexceptasprovidedbysubsection(5)ofthissection.
[1970No.23.]
(2)Ifanownerrecoverspossessionofgoodsincontraventionofsubsection(1)of
thissection,thehirepurchaseagreement,ifnotpreviouslydetermined,shalldetermine
and
(a) thehirershallbereleasedfromallliabilityundertheagreementandshallbe
entitledtorecoverfromtheownerinanactionformoneyhadandreceivedall
sumspaidbythehirerundertheagreementorunderanysecuritygivenbyhim
inrespectoftheagreement;and
(b) anyguarantorshallbeentitledtorecoverfromtheownerinanactionfor
moneyhadandreceivedallsumspaidbyhimunderthecontractofguarantee
orunderanysecuritygivenbyhiminrespectofthatcontract.
(3)Theprovisionsofsubsections(1)and(2)ofthissectionshallnotapplyinany
caseinwhichthehirerhasdeterminedtheagreementorthebailmentbyvirtueofany
rightvestedinhim.
(4)InthissectionandelsewhereinthisAct,"therelevantproportion",wherethe
referenceistotherelevantproportionofthehirepurchasepriceofanygoodsortothe
relevantproportionofapart(howeverdescribed)ofthatprice,means
(a) inthecaseofgoodsotherthanmotorvehicles,onehalf;and
(b) inthecaseofmotorvehicles,threefifths.
(5)Intheapplicationoftheprovisionsofthissectiontomotorvehicles,wherethree
ormoreinstallmentsofthehirepurchasepriceofamotorvehicleundertheagreement
aredueandunpaid,theownermayremovethemotorvehicletoanypremisesunderhis
controlforthepurposeofprotectingitfromdamageordepreciationandretainitthere
pendingthedeterminationofanyaction,andtheownershallbeliabletothehirerforany
damageorlosswhichmaybecausedbytheremoval.
[1970No.23.]
10.Powersofcourtinactionstorecovergoods
(1)Where,inanycasetowhichsection9ofthisActapplies,anownercommences
anactiontoenforcearighttorecoverpossessionofgoodsfromahireraftertherelevant
proportionofthehirepurchasepricehasbeenpaidortenderedasaforesaid,theowner
shallnottakeanysteptoenforcepaymentofanysumdueunderthehirepurchase
agreementorunderanycontractofguaranteerelatingtotheagreement,exceptbyclaim
ingthesumintheaction.
[1970No.23.]
(2)Subjecttosuchexceptionsasmaybeprovidedforbyrulesofcourt,alltheparties
totheagreementandanyguarantorshallbemadepartiestotheaction.
(3)Pendingthehearingoftheactionthecourtshall,inadditiontoanyotherpowers,
havepower,upontheapplicationoftheowner,tomakesuchordersasthecourtthinks
justforthepurposeofprotectingthegoodsfromdamageordepreciation,includingor
dersrestrictingorprohibitingtheuseofthegoodsorgivingdirectionsastotheir
custody.
(4)Onthehearingoftheactionthecourtmay,withoutprejudicetoanyother
power
(a) makeanorderforthespecificdeliveryofallthegoodstotheowner;or
(b) makeanorderforthespecificdeliveryofallthegoodstotheownerandpost
ponetheoperationoftheorder
(i) onconditionthatthehireroraguarantorpaystheunpaidbalanceof
thehirepurchasepriceatsuchtimesandinsuchamountsasthecourt
thinksjusthavingregardtothemeansofthehirerorguarantor;and
(ii) subjecttothefulfillmentofsuchotherconditionsbythehirerora
guarantorasthecourtthinksjust;or
(c) makeanorderforthespecificdeliveryofapartofthegoodstotheownerand
forthetransfertothehireroftheowner'stitletotheremainderofthegoods.
(5)Noordershallbemadeundersubsection(4)(b)ofthissectionunlessthecourtis
satisfiedthatthegoodsareinthehirer'spossessionorcontrolatthetimewhenthe
orderismade.
(6)Thecourtshallnotmakeanordertransferringtothehirertheowner'stitletoa
partofthegoodsunlessitissatisfiedthattheamountwhichthehirerhaspaidinrespectofthe
hirepurchasepriceexceedsthepriceofthatpartofthegoods(determinedinac
cordancewithsubsection(9)ofthissection)byatleasttherelevantproportionofthe
unpaidbalanceofthehirepurchaseprice.
(7)Wheredamageshavebeenawardedagainsttheownerintheproceedings,the
courtmaytreatthehirerashavingpaidinrespectofthehirepurchaseprice,inaddition
totheactualamountpaid,theamountofthedamages,orsuchpartthereofasthecourt
thinksfit,andthereuponthedamagesshallaccordinglyberemittedeitherinwholeorin
part.
(8)InthissectionandelsewhereinthisAct"orderforthespecificdeliveryof'any
goodsmeansanorderforthedeliveryofthegoodstotheownerwithoutgivingthehirer
anoptiontopaytheirvalue.
(9)Inthissection"price",inrelationtoanygoods,meanssuchpartofthehire
purchasepriceasisassignedtothosegoodsbythenoteormemorandumofthehire
purchaseagreementor,ifnosuchassignmentismade,suchpartofthehirepurchase
priceasthecourtmaydetermine.
(10)Ifatanytimebeforethehearingofanactiontowhichthissectionappliesthe
ownerhasrecoveredpossessionofapartofthegoods,thereferencesinsubsection(4)of
thissectiontoallthegoodsshallbeconstruedasreferencestoallthegoodswhichthe
ownerhasnotrecovered;andifthepartieshavenotagreeduponanadjustmentofthe
hirepurchasepriceinrespectofthegoodssorecovered,thecourtmayforthepurposes
ofparagraphs(b)and(c)ofthatsubsection,makesuchreductionofthehirepurchase
priceandoftheunpaidbalanceofitasthecourtthinksjust.
(11)Whenanownerhasrecoveredapartofthegoodsletunderahirepurchase
agreementandtherecoverywaseffectedincontraventionofsection10ofthisAct,the
provisionsofthissectionshallnotapplyinrelationtoanyactionbytheownertorecover
theremainderofthegoods.
11.Applicationofsections9and10ofthisActtosuccessivehirepurchaseagree
mentsbetweensameparties
Wheregoodshavebeenletunderahirepurchaseagreementand,atanytimeafterthe
relevantproportionofthehirepurchasepricehasbeenpaidortendered,theownermakes
afurtherhirepurchaseagreementwiththehirercomprisingthosegoods,theprovisions
ofsections9and10ofthisActshallhaveeffectasrespectsthatfurtheragreementfrom
itscommencement.
12.Effectofsuspensionoforderfordeliveryupofgoods
(1)Whiletheoperationofanorderforthespecificdeliveryofgoodstotheowneris
postponedundersection10ofthisAct,thehirershallbedeemedtobeabaileeofthe
goodsunderandonthetermsofthehirepurchaseagreement:
Providedthat
(a) nofurthersumshallbeorbecomepayablebythehireroraguarantoronac
countoftheunpaidbalanceofthehirepurchasepriceexceptinaccordance
withthetermsoftheorder;and
(b) thecourtmaymakesuchfurthermodificationsofthetermsofthehire
purchaseagreement,andofanycontractofguaranteerelatingtoit,asthecourt
considersnecessaryhavingregardtothevariationofthetermsofpayment.
(2)Ifwhiletheoperationofanorderforthespecificdeliveryofgoodstotheowner
ispostponedasaforesaidthehireroraguarantor
(a) failstocomplywithanyconditionofthepostponement,orwithanyterm
oftheagreementasvariedbythecourt;or
(b) wrongfullydisposesofthegoods,
theownershallnottakeanycivilproceedingsinrespectofthefailureordisposalagainst
thehirerorguarantorotherwisethanbymakinganapplicationtothecourtbywhichthe
orderwasmade:
Providedthat,inthecaseofabreachofanyconditionrelatingtothepaymentof
theunpaidbalanceofthehirepurchaseprice,itshallnotbenecessaryfortheownerto
applytothecourtforleavetoexecutetheorderunlessthecourthassodirected.
(3)Whentheunpaidbalanceofthehirepurchasepricehasbeenpaidinaccordance
withthetermsoftheorder,theowner'stitletothegoodsshallvestinthehirer.
(4)Thecourtmayatanytimeduringthepostponementoftheoperationofsuchan
orderasaforesaid
(a) varytheconditionsofthepostponementandmakesuchfurthermodificationof
thehirepurchaseagreement,andofanycontractofguaranteerelatingtoit,as
thecourtconsidersnecessaryhavingregardtothevariationoftheconditionsof
thepostponement;
(b) revokethepostponement;
(c) makeanorder,inaccordancewiththeprovisionsofsection10ofthisAct,for
thespecificdeliveryofapartofthegoodstotheownerandforthetransferto
thehireroftheowner'stitletotheremainderofthegoods.
(5)Thepowersofthecourtunderparagraphs(a)and(c)ofsubsection(4)ofthis
sectionmaybeexercised,notwithstandingthatanyconditionofthepostponementofthe
operationoftheorderhasnotbeencompliedwith,atanytimebeforethegoodsaredeliv
eredtotheownerinaccordancewithawarrantissuedinpursuanceoftheorder;and
wheresuchawarranthasbeenissued,thecourtshall
(a) ifthecourtvariestheconditionsofthepostponementunderparagraph(a)of
subsection(4)ofthissection,suspendthewarrantonthelikeconditions;
(b) ifthecourtmakesanorderunderparagraph(c)ofsubsection(4)ofthissection
forthedeliveryofapartofthegoodstotheownerandforthetransfertothe
hireroftheowner'stitletotheremainingpartthereof,cancelthewarrantsofar
asitprovidesforthedeliveryofthelastmentionedpartofthegoods.
(6)Atanytimebeforethedeliveryofgoodstotheownerinaccordancewithawar
rantissuedasaforesaid,thewarrantmay,sofarasitprovidesforthedeliveryofgoods,
bedischargedbythepaymenttotheownerbythehireroranyguarantorofthewholeof
theunpaidbalanceofthehirepurchaseprice,andinanysuchcasetheowner'stitletothe
goodsshallvestinthehirer.
(7)Ifinanyactiontowhichsection10ofthisActappliesanofferastoconditions
forthepostponementoftheoperationofanorderundersubsection(4)(b)ofthatsection
ismadebythehirerandacceptedbytheownerinaccordancewithrulesofcourt,anor
derunderthatparagraphmaythereuponbemadebythecourtinaccordancewiththesaid
offerwithouthearingevidenceastomattersspecifiedinthatparagraphorinsubsection
(5)ofthatsection:
Providedthatwhereaguarantorisapartytotheaction,nosuchordershallbe
madebeforethedatefixedforthehearingoftheaction.

13.Powersofcourtastopaymentsarisingondeterminationofhirepurchase
agreements
(1)Whereahirepurchaseagreementvalidlyprovidesforthepaymentbythehireron
orafterthedeterminationoftheagreementorthebailmentofsuchsumas,whenaddedto
thesumspaidandthesumsdueinrespectofthehirepurchasepricebeforethedetermi
nation,isequaltoafixedamount,andaclaimismadeinrespectofanysuchsuminan
actiontowhichsection10ofthisActapplies,then
(a) ifthecourtmakesanorderforthespecificdeliveryofapartofthegoodsto
theownerandthetransfertothehireroftheowner'stitletotheremainderof
thegoods,theclaimshallbedisallowed;
(b) ifthecourtpostponestheoperationofanorderforthespecificdeliveryofthe
goodstotheowner,itshallnotentertaintheclaimunlessanduntilthepost
ponementisrevoked,andshallthendealwiththeclaimasiftheagreement
hadjustbeendetermined.
(2)Wherethehireroraguarantorhaspaidorhasbeenorderedtopayanysuchsum
asaforesaidandtheownersubsequentlyseekstorecoverthegoodsinanactiontowhich
section10ofthisActapplies,thecourtmaytreatthatsumaspaidorpayable,asthecase
maybe,inrespectofthehirepurchaseprice.
14.Adversepossessionandconversion
(1)Where,inanyactionbyanownerofgoodswhichhavebeenletunderahire
purchaseagreementtoenforcearighttorecoverpossessionofthegoodsfromthehirer,
theownerprovesthat,beforethecommencementoftheactionandaftertherighttore
coverpossessionofthegoodsaccrued,theownermadearequestinwritingtothehirerto
surrenderthegoods,thehirer'spossessionofthegoodsshall,forthepurposesofthe
owner'sclaimtorecoverpossessionofthem,bedeemedtobeadversetotheowner.
(2)Nothinginsubsection(1)ofthissectionshallaffectaclaimfordamagesforcon
version.
(3)Ifatanytimewhiletheenforcementbyanownerofarighttorecoverpossession
ofgoodsfromahirerissubjecttoanyrestrictionbyvirtueofthisAct,thehirerrefusesto
giveuppossessionofthegoodstotheowner,thehirershallnot,byreasononlyofthe
refusal,beliabletotheownerforconversionofthegoods.
Controlofadvertisements
15.Advertisementssubjecttocontrol
(1)Thissectionappliestoanyadvertisementofanygoodsasbeingavailablefordis
posalbywayofhirepurchaseorcreditsale,iftheadvertisementincludesoneormoreof
theelementsmentionedinsubsection(2)ofthissectionandisnotanadvertisementfal
lingwithinsubsection(3)ofthissection.
(2)Theelementsrequiredbytheprovisionsofthissectionare
(a) anindicationthatadepositispayable,consistingoforincludingeitheran
indicationoftheamountofthedepositoranindicationthatitisafraction

specifiedintheadvertisement,whethertheamountofwhichitisafractionis
specifiedintheadvertisementornot;
(b) wordsindicatingthatnodepositispayable;
(c) anindicationoftheamountofanyoneormoreoftheinstalmentspayable.
(3)Anadvertisementofgoodsasbeinggoodsavailablefordisposalbywayofcredit
saleisnotanadvertisementtowhichthissectionapplies,notwithstandingthatitinclude
oneormoreoftheelementsmentionedinsubsection(2)ofthissection,if
(a) itdoesnotadvertiseanygoodsasbeingavailablefordisposalbywayofhire
purchase;and
(b) thetermsofcreditsalesetoutintheadvertisementaresuchthatnosingleart
couldbedisposedofinaccordancewiththosetermsatatotalpriceex
ceedingtennaira.
16.Informationtobeincludedinadvertisements
(1)Anadvertisementtowhichsection15ofthisActappliesshallnotbedisplayedor
issuedbyanymeansunlessitincludesalltheinformationrequiredbythissectionand
eachpartofthatinformationisdisplayedorstatedclearlyintheadvertisementinsucha
wayasnottogiveundueprominenceoremphasistoanypartofitincomparisonwith
anyotherpart.
(2)Whereanadvertisementcontainsdetailsofpaymentsinrespectofanygoods,
then,insofarasitrelatestothosegoods,theinformationrequiredbythissectionisthe
following,thatistosay
(a) either
(i)theamountofthedepositdirectlyexpressed;or
(ii) astatementthattheamountofthedepositisafractionspecifiedinthe
advertisementofasumtheamountofwhichisdirectlyexpressedinth
advertisement;or
(iii)astatementthatnodepositispayable;
theamountofeachinstalmentdirectlyexpressed;
(b)
(c)
(d)

(e)
thetotalnumberofinstalmentspayable;
thelengthoftheperiodinrespectofwhicheachinstalmentispayable;
ifanyinstalmentsarepayablebeforedeliveryofthegoods,thenumberofin
stalmentssopayable;and
asumstatedasthecashpriceofthegoods.
(f)
(3)Insofarasanadvertisementtowhichsection15ofthisActappliesrelatesto
goodsinrespectofwhichtheadvertisementdoesnotcontaindetailsofpayments,the
informationrequiredbythissectionisthatspecifiedinsubsection(2)ofthissection,
subjecttothefollowingmodifications,thatistosay
(a) withregardtothedeposit,theinformationrequiredbythissection(insteadof
thatspecifiedinsubsection(2)(a)ofthissection)iseither
(i) astatementthattheamountofthedepositisafractionspecifiedinthe
advertisementofapriceorsumthenatureofwhichisclearlyindicatedinthe
advertisement;or
(ii)astatementthatnodepositispayable;and
(b) subsection(2)(b)and(f)ofthissectionshallnotapply.
(4)Forthepurposesofthissectionanadvertisementshallbetakentocontaindetailsof
paymentsinrespectofanygoodsifitspecifiestheamountofthedepositpayablein
respectofthosegoods,orofanyoneormoreoftheinstalmentssopayable,andthat
amountisdirectlyexpressedintheadvertisement.
(5)Withoutprejudicetothegeneralityofsubsection(1)ofthissection,inthecaseofan
advertisementofgoods
(a) asbeinggoodsavailablefordisposalalternativelybywayofhirepurchase
orbywayofcreditsale;or
(b) asbeinggoodsavailablefordisposalinaccordancewithtwoormorealterna
tiveschemesofhirepurchase,ortwoormorealternativeschemesofcredit
sale,
theinformationrequiredbythissectionshallnotbetakentobedisplayedorstated
clearlyintheadvertisementifitisnotdisplayedorstatedsoastodistinguishclearlybe
tweentheinformationapplicabletohirepurchaseandtheinformationapplicableto
creditsaleor,asthecasemaybe,soastodistinguishclearlybetweentheinformation
applicabletoeachoftheschemesofhirepurchaseorcreditsalerespectively.
(6)Inthecaseofanyadvertisementcontainedinasoundbroadcastorissuedby
meansofaloudspeakerorotherpublicaddresssystem
(a) forthepurposesofsection15ofthisAct,andforthepurposeofdetermining
underthissectionwhethertheadvertisementcontainsdetailsofpaymentsin
respectofanygoods,anythingincludedinanyvisualdisplaybywhichthead
vertisementisaccompaniedshallbetakentoformpartoftheadvertisement;
(b) forthepurposesofthissectionotherthanthepurposementionedinpara
graph(a)ofthissubsection,informationshallbetakennottobeincludedin
theadvertisementunlessitiscontainedinitinanaudibleform;
(c) indeterminingforthepurposesofsubsection(1)ofthissectionwhethereach
partoftheinformationrequiredbythisActisstatedclearlyintheadvertise
mentinsuchawayasnottogiveundueprominenceoremphasistoanypartof
itincomparisonwithanyotherpart,regardshallbehadtothelengthoftime
takenbyeachsuccessivepartoftheadvertisementandtotheaggregatelength
oftimetakenbythemall,aswellastothecontentsoftheadvertisement.
(7)Inthecaseofanyadvertisementcontainedinacinematographfilmortelevision
broadcast
(a) forthepurposesofsection15ofthisAct,andforthepurposeofdetermining
underthissectionwhethertheadvertisementcontainsdetailsofpaymentsin
respectofanygoods,anythingincludedinanyspokenwordsorothersounds
bywhichtheadvertisementisaccompaniedshallbetakentoformpartofthe
advertisement;

(b) forthepurposesofthissection,otherthanthepurposementionedinpara
graph(a)ofthissubsection,informationshallbetakennottobeincludedin
theadvertisementunlessitiscontainedinitinavisualform;
(c) indeterminingforthepurposesofsubsection(1)ofthissectionwhethereach
partoftheinformationrequiredbythisActisdisplayedclearlyintheadver
tisementinsuchawayasnottogiveundueprominenceoremphasistoany
partofitincomparisonwithanyotherpart,regardshallbehadtothelengthof
timeforwhichtheadvertisementisdisplayed(or,ifdifferentpartsofthead
vertisementaredisplayedsuccessively,tothelengthoftimetakenbyeachof
themandtotheaggregatelengthoftimetakenbythemall)aswellastothe
contentsoftheadvertisement.
17.Penalties
(1)Subjecttotheprovisionsofthissection,anypersonwhodisplaysorissuesanad
vertisementincontraventionoftheprovisionsofsection16ofthisAct,orcausesanad
vertisementtobedisplayedorissuedincontraventionofthoseprovisions,shallbeguilty
ofanoffenceandliableonsummaryconviction
(a) ifitishisfirstconvictionofanoffenceunderthissection,toafinenotex
ceedingonehundrednaira;
(b) inanyothercase,toafinenotexceedingfourhundrednaira.
(2)Whereapersonischargedwithanoffenceunderthissection,itshallbea
defencetoprove
(a) thatthematterscontainedintheadvertisementdidnotrelatetoanythingtobe
doneinthecourseofabusinesscarriedonbyhim;and
(b) thatthematterssocontainedwerenot(whollyorinpart)devisedorselected
byhimorbyanyotherpersonunderhisdirectionorcontrol.
(3)Whereanoffenceunderthissectioncommittedbyabodycorporateisprovedto
havebeencommittedwiththeconsentorconnivanceof,ortobeattributabletoanyne
glectonthepartof,anydirector,manager,secretaryorothersimilarofficerofthebody
corporateoranypersonwhowaspurportingtoactinanysuchcapacity,heaswellasthe
bodycorporateshallbeguiltyofthatoffenceandshallbeliabletobeproceededagainst
andpunishedaccordingly:
Providedthat,forthepurposesoftheapplicationofsubsection(2)ofthissectionto
anyproceedings,insofarastheyarebroughtagainstapersonbyvirtueofthissubsection
inrespectofanoffencecommittedbyabodycorporate,referencesinparagraphs(a)and
(b)ofsubsection(2)ofthissectiontothepersonchargedshallbeconstruedasreferences
tothebodycorporate.
Miscellaneousandgeneral
18.PowerofMinistertorequireinformationabouthirepurchasebusiness,etc.
(1)TheMinistermaybyregulationspublishedintheFederalGazettemakeprovi
sion

(a) forrequiringpersonswhocarryon,orhavecarriedon,thebusinessofdispos
ingofgoodsbymeansofhirepurchaseorcreditsaletransactions,orofmak
ingfundsavailableforthepurposesofsuchtransactions,tofurnishtothe
Minister,atsuchtimesandinsuchformasmaybeprescribedbytheregula
tions,suchinformationrelatingtothebusinessasmaybesoprescribed;
(b) forprescribingpenaltiesforoffencesagainsttheregulationsnotexceeding
(i) inthecaseofanoffenceinvolvingthefurnishingoffalseinformation,
imprisonmentforatermoftwoyearsorafineofonethousandnairaor
both;
(ii)inanyothercase,afineoftwohundrednaira.
(2)TheMinister,orthePermanentSecretaryoftheMinistryonhisbehalf,may
authoriseinwritinganyofficeroftheMinistrytoactasaninspectorunderthissection;
andanypersonsoauthorisedmay,forthepurposeofenforcinganyregulationsmade
underthissection,andonproducinghisauthorisationifsorequired,enteratallreason
abletimesanypremisesusedforthepurposesofanysuchbusinessasismentionedin
subsection(1)ofthissectionand
(a)inspectanybooksordocumentsonthosepremiseswhichappeartohimto
relatetoanysuchbusiness;and
(b) takecopiesof,orofanythingcontainedin,anysuchbookordocument.
(3)Adocumentwhichpurports
(a) toauthoriseapersonwhosefullnamesaresetoutthereintoactasaninspector
underthissection;and
(b) tobesignedbytheMinisterorthePermanentSecretaryoftheMinistry,
shall,exceptinsofarasthecontraryisproved,bedeemedtobeavalidauthorisation
underthissectionofthepersonnamedtherein.
(4)Anypersonwhowilfullyobstructsordelaysanypersonintheexerciseofhis
powersofentry,inspectionortakingcopiesundersubsection(2)ofthissectionshallbe
guiltyofanoffenceandliableonsummaryconvictiontoafinenotexceedingonehun
drednaira.
(5)Ifanypersondiscloses,otherwisethanonthedirectionsoftheMinisterorforthe
purposesoflegalproceedingstakeninpursuanceofregulationsmadeunderthissection,
anyinformationobtainedbyhim
(a) byvirtueofanysuchregulations;or
(b) intheexerciseofanypowerconferredbysubsection(2)ofthissection,
heshallbeguiltyofanoffenceandliableonsummaryconvictiontoimprisonmentfora
termnotexceedingtwoyears.
19.PowerofMinistertoexcludegoods,etc.,fromoperationoftheAct
(1)TheMinistermaybyorderpublishedintheFederalGazette
(a) excludefromtheoperationofthisActgoodsofanydescriptionorclassspeci
fiedintheorder;and
(b) excludefromtheoperationofthisActanystatutorycorporationsospecified.
(2)Inthissection,"statutorycorporation"meansabodycorporateestablisheddirectlybyalawinforce
inNigeria.

20.Interpretation,etc.
(1)InthisAct,unlessthecontextotherwiserequires
"action"includescounterclaimandsetoff;
"advertisement"means
(a) anyformofadvertisingbywayofsoundbroadcastingorbymeansofa
loudspeakeroranyotherpublicaddresssystem;and
(b) anyvisualformofadvertising(whetherornotaccompaniedbyspokenwords
orothersounds),whetherinapublication,orbythedisplayofnotices,orby
meansofcatalogues,pricelists,labelsorotherdocuments,orbytheexhibition
ofcinematographfilmsorphotographs,orbywayoftelevision,orinanyother
way;
"buyer"meansapersonwhobuysoragreestobuygoods;
"contractofguarantee"means,inrelationtoanyhirepurchaseagreementorcredit
saleagreement,acontract,madeattherequestexpressorimpliedofthehirerorbuyer,to
guaranteetheperformanceofthehirer'sorbuyer'sobligationsunderthehirepurchase
agreementorcreditsaleagreement,andtheexpression"guarantor"shallbeconstrued
accordingly;
"creditsale"meansthesaleofgoodsinpursuanceofanagreementunderwhichthe
wholeorpartofthepurchasepriceispayablebyfiveormoreinstalments,and"credit
saleagreement"shallbeconstruedaccordingly;
"delivery"meansvoluntarytransferofpossessionfromonepersontoanother;
"deposit"includesanyinitialpaymenttobemadebeforeoratthetimeofentering
intoanagreement;
"directlyexpressed"meansexpressed(whetherinwordsorfiguresorboth)other
wisethanasafractionof,orbyreferenceto,someotheramount;
"disposal",inrelationtogoods,includes
(a) thedisposaloftheownershipofthegoods,orofanyproprietaryinterestin
them,oroftherighttopossessionofthegoods;and
(b) thedisposalofthepossessionofthegoods,whetherornotaccompaniedby
anydisposaloftheownershipofthegoods,orofanyproprietaryinterestin
them,oroftherighttopossessionofthem;
"fraction"includesaproportionexpressedasapercentageorinanyotherway;
"goods"meansanychattelspersonal,otherthanthingsinactionandmoney;

"hirer"meansthepersonwhotakesorhastakengoodsfromanownerunderahire
purchaseagreementandincludesapersontowhomthehirer'srightsorliabilitiesunder
theagreementhavepassedbyassignmentorbyoperationoflaw;
"hirepurchase"meansthebailmentofgoodsinpursuanceofanagreementunder
whichthebaileemaybuythegoodsorunderwhichthepropertyinthegoodswillormay
passtothebailee,and"hirepurchaseagreement"shallbeconstruedaccordingly;and
wherebyvirtueoftwoormoreagreements,noneofwhichbyitselfconstitutesahire
purchaseagreement,thereisabailmentofgoodsandeitherthebaileemaybuythegoods,
orthepropertythereinwillormaypasstothebailee,theagreementsshallbetreatedfor
thepurposesofthisActasasingleagreementmadeatthetimewhenthelastofthe
agreementswasmade;
"hirepurchaseprice"meansthetotalsumpayablebythehirerunderahire
purchaseagreementinordertocompletethepurchaseofgoodstowhichtheagreement
relates,exclusiveofanysumpayableasapenaltyorascompensationordamagesfor
breachoftheagreementbutincludinganysumpayablebythehirerundertheagreement
bywayofdepositorotherinitialpayment,orcreditedortobecreditedtohimunderthe
agreementonaccountofanysuchdepositorpayment,whetherthatsumistobeorhas
beenpaidtotheownerortoanyotherpersonoristobeorhasbeendischargedbya
paymentofmoneyorbythetransferordeliveryofgoodsorbyanyothermeans;
"theMinister"meanstheMinisteroftheGovernmentoftheFederationresponsible
forcommerce,and"theMinistry"shallbeconstruedaccordingly;
"motorvehicle"meansamechanicallypropelledvehicleintendedoradaptedforuse
onroadsorforuseforagriculturalpurposes;
"owner"meansthepersonwholetsorhasletgoodstoahirerunderahirepurchase
agreementandincludesapersontowhomtheowner'spropertyinthegoodsoranyofthe
owner'srightsorliabilitiesundertheagreementhaspassedbyassignmentorbyopera
tionoflaw;
"property"meansthegeneralpropertyingoodsandnotmerelyaspecialproperty;
"therelevantproportion",wherethereferenceistotherelevantproportionofthe
hirepurchasepriceofanygoodsortotherelevantproportionofapart(howeverde
scribed)ofthatprice,hasthemeaningassignedbysection9(4)ofthisAct;
"sale"includesabargainandsaleaswellassaleanddelivery;
"seller"meansapersonwhosellsoragreestosellgoods;
"totalpurchaseprice"meansthetotalsumpayablebythebuyerunderacreditsale
agreement,exclusiveofanysumpayableasapenaltyorascompensationordamagesfor
breachoftheagreementbutincludinganysumpayablebythebuyerundertheagreement
bywayofdepositorotherinitialpayment,orcreditedortobecreditedtohimunderthe
agreementonaccountofanysuchdepositorpayment,whetherthatsumistobeorhas

beenpaidtothesellerortoanyotherpersonoristobeorhasbeendischargedbya
paymentofmoneyorbythetransferordeliveryofgoodsorbyanyothermeans;
"warranty"meansanagreementwithreferencetogoodswhicharethesubjectofa
contractbutcollateraltothemainpurposeofthecontract,thebreachofwhichgivesrise
toaclaimfordamagesbutnottoarighttorejectthegoodsandtreatthecontractasrepu
diated.
(2)Whereanownerhasagreedthatanypartofthehirepurchasepricemaybedis
chargedotherwisethanbythepaymentofmoney,anysuchdischargeshall,forthepur
posesofsections6to13ofthisAct,bedeemedtobeapaymentofthatpartofthehire
purchaseprice.
(3)Where,underanyhirepurchaseagreementmadeafterthecommencementofthis
Act,theownerisrequiredtocarryoutanyinstallation,andthenoteormemorandumof
theagreementspecifiesaspartofthehirepurchasepricetheamounttobepaidinrespect
oftheinstallation
(a) thereferenceinsection8ofthisActtoonehalfofthehirepurchaseprice
shallbeconstruedasareferencetotheaggregateofthesaidamountandone
halfoftheremainderofthehirepurchaseprice;and
(b) referencesinsections9to11thisActtotherelevantproportionofthehire
purchasepriceshallbeconstruedasreferencestotheaggregateofthesaid
amountandtherelevantproportionoftheremainderofthehirepurchaseprice.
(4)Forthepurposesofsubsection(3)ofthissection,theexpression"installation"
means
(a) theinstallingofanyapparatusmotivatedbyorconductingelectricityorofany
gasorwaterpipe;
(b) thefixingofgoodstowhichtheagreementrelatestothepremiseswherethey
aretobeusedandthealterationofpremisestoenableanyofthegoodstobe
usedthere;and
(c) whereitisreasonablynecessarythatanysuchgoodsshouldbeconstructedor
erectedonthepremiseswheretheyaretobeused,anyworkcarriedoutforthe
purposeoftheconstructionorerection.
21.Shorttitleandextent
ThisActmaybecitedastheHirepurchaseAct,andshallapplythroughouttheFederation.
[1966No.42.]

SCHEDULE
[Section2(2)(c).]
Noticeforinclusioninhirepurchaseagreements
Rightofhirertoterminateagreement
1.Thehirermayputanendtothisagreementbygivingnoticeofterminationinwriting
toanypersonwhoisentitledtocollectorreceivethehirerent.
2.Hemustthenpayanyinstalmentswhichareinarrearsatthetimewhenhegivesnotice.If,
whenhehaspaidthoseinstalments,thetotalamountwhichhehaspaidundertheagreementis
lessthan(hereinserttheminimumamountwhichthehirerisrequiredtopayinaccordance
withtheprovisionsofsections8and20(3)ofthisAct)hemustalsopayenoughtomakeup
thatsum.
3.Ifthegoodshavebeendamagedowingtothehirerhavingfailedtotakereasonablecareof
them,theownermaysuehimfortheamountofthedamageunlessthatamountcanbeagreed
betweenthehirerandtheowner.
4.Thehirershouldseewhetherthisagreementcontainsprovisionsallowinghimtoputanendto
theagreementontermsmorefavourabletohimthanthosejustmentioned.Ifitdoes,hemay
putanendtotheagreementonthoseterms.
Restrictionofowner'srighttorecovergoods
5.*[After(hereinsertanamountcalculatedinaccordancewiththeprovisionsof
sections9and20(3)ofthisAct)hasbeenpaid,then,]unlessthehirerhashimselfputan
endtotheagreement,theownerofthegoodscannottakethembackfromthehirer
withoutthehirer'sconsentunlesstheownerobtainsanorderofthecourt.
*Iftheagreementisafurtheragreementwithinthemeaningofsection11ofthis
Act,thewordsinsquarebracketsshouldbeomitted.
6.Iftheownerappliestothecourtforsuchanorder,thecourtmay,ifthecourtthinksitjust
todoso,allowthehirertokeepeither
(a) thewholeofthegoods,onconditionthatthehirerpaysthebalanceofthe
priceinthemannerorderedbythecourt;or
(b)afairproportionofthegoodshavingregardtowhatthehirerhasalreadypaid.
HIREPURCHASEACT
SUBSIDIARYLEGISLATION
ListofSubsidiaryLegislation
1.HirepurchaseRegulations

HIREPURCHASEREGULATIONS
ARRANGEMENTOFREGULATIONS
REGULATION
1.Shorttitleandapplication.
2. Interpretation.
3. Requirementsrelatingtohirepurchaseandcreditsaleagreements.
4. Furtherrequirementsrelatingtohirepurchaseandcreditsaleagreements.
5. Ownerofgoodsnottopermitthepossessionofhisgoodsincontraventionofregulation4.
6. Regulations3,4and5nottoapplyincertaincases.
7. Conditionsunderwhichpossessionofgoodsmaybetransferredinanticipationofhire
purchaseorcreditsaleagreement.
8. Prohibitionofvariationofhirepurchaseorcreditsaleagreementincertaincases.
9. Exceptionstoregulation8,etc.
10.Possessionacquiredthroughdeathofthehirerorbyassignmenttoabodycorporate.
11Penalties.
12.Regulationsnottoapplytocertaincreditsaleagreements.
13.GoodsaffectedbytheseRegulations.
14.Methodofcalculatingtruerateofinterest.
15.Monthlyreturns:penalties.
SCHEDULES
FIRSTSCHEDULE
GoodstowhichtheseRegulationsapply
SECONDSCHEDULE
Requirementsrelatingtohirepurchaseandcreditsaleagreements
THIRDSCHEDULE
Substitutedagreements
FOURTHSCHEDULE
Formulaforcalculatingtruerateofinterestorcharge
FIFTHSCHEDULE
Returns
HIREPURCHASEREGULATIONS
[L.N.91of1968.]
undersections2(2),5and18
[1stOctober,1968]
[Commencement.]
1. Shorttitleandapplication
(1)TheseRegulationsmaybecitedastheHirepurchaseRegulations.
(2)TheHirepurchaseActhavingbeenextendedinitsapplicationbytheHire
purchase(Application)Act,theseRegulationsshallhaveeffectthroughouttheFederation.
[Cap.H4.1966No.42.]
2. Interpretation
(1)IntheseRegulations,unlessthecontextotherwiserequires
"cashprice"means,inrelationtoanyhirepurchaseorcreditsaleagreementinre
spectofanygoods,thepriceatwhichtheprospectivehirerorbuyermay,atthedateof
theagreement,purchaseoragreetopurchasethegoodsforcash;
"Minister"meanstheMinisteroftheGovernmentoftheFederationresponsiblefor
tradeandtourism;
"FirstSchedule","SecondSchedule","ThirdSchedule","FourthSchedule"and
"FifthSchedule"meansrespectivelyFirst,Second,Third,FourthandFifthScheduleof
theseRegulations.
(2)ExpressionsusedintheseRegulationswherenotinconsistentherewithhavethe
meaningassignedtothembytheHirepurchaseAct.
[Cap.H4.]
3. Requirementsrelatingtohirepurchaseandcreditsaleagreements
(1)ApersonshallnotdisposeofanygoodstowhichtheseRegulationsapplyinpur
suanceofahirepurchaseoracreditsaleagreemententeredintoonorafterthespecifieddate
unlesstherequirementsspecifiedinPartIoftheSecondScheduletotheseRegula
tionsareorhavebeencompliedwithinrelationtothatagreement.
(2)InanyproceedingsforanallegedcontraventionoftheprovisionsoftheseRegu
lations,inwhichitisallegedthat,byvirtueoftheprovisionsofPartoftheSecond
ScheduletotheseRegulations,therequirementsspecifiedinparagraph2ofPartofthat
Schedulewasnotcompliedwith,itshall,inrespectofthatallegationbeadefenceifthe
defendantprovesthatatthetimeoftheallegedoffence
[SecondSchedule.]

(a) hehadnoreasonablecausetobelievethatmoneyhadbeenborrowedoroth
erwiseacquiredoragreedtobeborrowedorotherwisebeacquiredforthepur
poseandthecircumstancesmentionedinPartIIofthatSchedule;and
(b) hewasnotapartytoanyagreementorarrangementunderorasaresultof
whichmoneycouldbeborrowedorotherwiseacquiredoragreedorotherwise
tobeacquiredtofacilitatethemakingofpaymentsofthedescriptionmen
tionedinparagraph2ofthisregulation.
4. Furtherrequirementsrelatingtohirepurchaseandcreditsaleagreements
Apersonshallnot,byvirtueofahirepurchaseorcreditsaleagreemententeredinto
onorafterthespecifieddate,beinpossessionofanygoodstowhichtheseRegulations
applyunless
(a) thatagreementcomplieswiththerequirementsspecifiedinparagraph1of
PartoftheSecondScheduletotheseRegulations;and
[SecondSchedule.]
(b) apaymentcomplyingatthedatewhenthepaymentwasmadewiththere
quirementsspecifiedinparagraph2ofPartoftheSecondScheduletothese
Regulations,wasmadebyhimbeforeheenteredintotheagreementunder
whichheheldthosegoods;and
(c) thatagreementprovidesforthepaymentofthebalancedueinrespectofeach
descriptionofgoodscomprisedthereineither
(i)byapproximatelyequalinstalmentsatequalintervalsspreadovera
period,commencingwiththedateoftheagreementunderwhichhe
heldthosegoods,notexceedingtheperiodspecifiedincolumn3of
PartoftheFirstScheduleinrelationtothatdescriptionofgoods:
Providedthatwhereahirepurchaseorcreditsaleagreementhasbeenvariedby
thelengtheningorshorteningoftheperiodoverwhichthebalanceduethereunderispay
able,thissubparagraphshallbedeemedtobecompliedwithinrespectoftheremainder
ofthatperiodifthebalanceremainingatthedateofthevariationispayablebyapproxi
matelyequalinstalmentsatequalintervalsspreadovertheremainderofthatperiod;or
(ii) inthecaseofahirepurchaseagreement,byonepaymenttobemade
withintheperiodofthreemonthscommencingwiththedateofthe
agreement.
5.Ownerofgoodsnottopermitthepossessionofhisgoodsincontraventionof
regulation4
(1)ApersonshallnotknowinglycauseorpermitanygoodstowhichtheseRegula
tionsapply,ownedbyhim,tobeinpossessionofanotherpersonbyvirtueofahire
purchaseagreementifthepossessionofthosegoodsbythatotherpersoncontravenesthe
provisionsofregulation4oftheseRegulations.
(2)ApersonshallnotknowinglycauseorpermitanygoodstowhichtheseRegula
tionsapply,ownedbyhimimmediatelybeforeheentersintoacreditsaleagreement,to
beinpossessionofanotherpersonbyvirtueofanysuchagreementifthepossessionof
thosegoodsbythatotherpersoncontravenestheprovisionsofregulation4ofthese
Regulations.

6. Regulations3,4and5nottoapplyincertaincases
Inanyproceedingsforanallegedcontravention,inrelationtoanyagreement,ofthe
provisionsofregulations3,4and5oftheseRegulations,itshallbeadefenceifthede
fendantprovesthat
(a) thehirerhadbeforethespecifieddateenteredintoacontractinwritingtobuy
thegoodsthesubjectoftheagreement;
(b) thecontracttobuywasvalidandenforceableonthespecifieddate;
(c) thegoodsweretobemanufacturedtothespecialorderofthehirer;and
(d) workonthegoodsinfulfilmentofthecontracttobuyhadbeenbegunbefore
thespecifieddate.
7.Conditionsunderwhichpossessionofgoodsmaybetransferredinanticipation
ofhirepurchaseorcreditsaleagreement
(1)Apersonshallnotknowinglycauseorpermitanotherpersontobeinpossession
ofanygoodstowhichtheseRegulationsapplyinanticipationofthemakingofahire
purchaseorcreditsaleagreementinrespectofthoseorothergoodstowhichthese
Regulationsapply,unlesswithinfourteendaysofthosegoodsbeingdisposedoftothat
otherperson,thatotherpersonhasmadeactualpaymentofanamount,calculatedinre
spectofthosegoodsinaccordancewiththeprovisionsofparagraph2ofthisregulation
tothepersonwhohaddisposedofthegoodstohim.
(2)Theamounttobepaidbyapersonbyvirtueofparagraph(1)ofthisregulationin
respectofanysuchgoodsshallbethepercentage,specifiedincolumn2ofPartIofthe
FirstScheduletotheseRegulationsinrelationtothedescriptionofgoodstowhichthose
goodsbelong,ofthepriceatwhich,atthedatewhenthegoodsweredisposedoftohim
hecouldhavepurchasedthemforcash.
(3)TheprovisionsofPartoftheSecondScheduletotheseRegulationsshallwith
therequisitemodifications,applyforthepurposeofdeterminingwhetherthisregulation
hasbeencompliedwithastheyapplyforthepurposeofdeterminingwhetherthere
quirementspecifiedinparagraph2ofPartofthatSchedulehasbeencompliedwith.
[SecondSchedule.]
(4)Anypaymentmadebyvirtueofthisregulationshallnotberepaidinwholeorin
partunlessanduntilthegoodsinrespectofwhichthepaymentwasmadehavebeenre
turnedtothepersontowhomitwasmade.
8.Prohibitionofvariationofhirepurchaseorcreditsaleagreementincertain
cases
(1)Apersonshallnotenterintoanyagreementwherebyanyhirepurchaseorcredit
saleagreemententeredintoafterthespecifieddatecomprisinggoodstowhichthese
Regulationsapplyisvariedineitherorbothofthefollowingrespects,thatistosay
(a) anypayment,madeinaccordancewiththeprovisionsoftheseRegulations
beforetheagreementwasenteredinto,isaffected;
(b) theperiodoverwhichthebalanceduethereunderispayableinrespectof
goodsofanydescriptionislengthenedbeyondthemaximumperiodprovided
forintheseRegulationsforthatdescriptionofgoods.

(2)Apersonshallnotenterintoanyagreementwherebyahirepurchaseorcredit
saleagreemententeredintoonorafterthespecifieddateisvariedinsuchmannerthat
thathirepurchaseorcreditsaleagreementcomprisesaftersuchvariationgoodstowhich
theseRegulationsapplynotcomprisedthereinbeforesuchvariation.
(3)Apersonshallnotenterintoanyhirepurchaseorcreditsaleagreementwhichis
insubstitutionforanothersuchagreemententeredintoonorafterthespecifieddate
which
(a) comprisesallorsomeofthegoodscomprisedinthatotheragreement;and
(b) comprisesgoodstowhichtheseRegulationsapplybutnotcomprisedinthat
otheragreement.
9. Exceptionstoregulation8,etc.
(1)Nothinginregulations3and4oftheseRegulationsshallapplytothedisposalor
possessionofanygoodsunderanyhirepurchaseorcreditsaleagreement(hereinafter
called"thesubstitutedagreement")if
(a) thesubstitutedagreementisinsubstitutionforahirepurchaseorcreditsale
agreementcomprisingsolelygoodstowhichtheseRegulationsapplyanden
teredintobetweenthesameparties(hereinaftercalled"thereplacedagree
ment"),and
(b) therequirementsspecifiedintheThirdScheduletotheseRegulationsareor
havebeencompliedwithinrelationtothesubstitutedagreement.
[ThirdSchedule.]
(2)Nothinginregulation8oftheseRegulationsshallprohibittheenteringintoofa
substitutedagreementiftheconditionscontainedinsubparagraphs(a)and(b)ofpara
graph(1)ofthisregulationarecompliedwithinrelationtothatagreement.
10.Possessionacquiredthroughdeathofthehirerorbyassignmenttoabodycor
porate
Inrelationtoanyhirepurchaseorcreditsaleagreementinpursuanceofwhichany
goodstowhichtheseRegulationsapplyaredisposedofto,orbyvirtueofwhichanysuch
goodsareinthepossessionof
(a) thespouseofadeceasedpersonwhoatthedateofhisdeathwasinpossession
ofthosegoodsunderahirepurchaseoracreditsaleagreement;or
(b) abodycorporatetowhompossessionofthosegoodshasbeentransferredin
thecourseoftheassignmentofabusinesstothatbodycorporatebyanyperson
whowasatthedateoftransferinpossessionofthosegoodsunderahire
purchaseorcreditsaleagreement
theseRegulationsshallhaveeffectasif
(i)anypaymentmadeinaccordancewiththeprovisionsofthese
Regulationsinrespectofthosegoodsbythedeceasedorbythe
transferor,asthecasemaybe,hadbeenmadebythatspouseor
thatbodycorporaterespectively;and

(ii) themaximumperiodprescribedbytheseRegulationsforthepayment
ofthebalancedueinrespectofthosegoodsweretheperiodspecifiedin
column3ofPartoftheFirstScheduletotheseRegulationsinrelationtothe
goodsoftheappropriatedescriptionlesstheperiodcommencingwiththedate
ofthemakingofthefirstagreementunderwhichthedeceasedorthe
transferor,asthecasemaybe,wasinpossessionofthosegoods,and
terminatingrespectivelywiththedateof
deathortransfer.
[FirstSchedule.]
11.Penalties
(1)Anypersonwhocontravenestheprovisionsofregulation3,4,5,7or8ofthese
Regulationsshallbeguiltyofanoffenceandliableonsummaryconvictiontoafinenot
exceedingtwohundrednaira.
(2)Whereanoffenceunderthisregulationorregulation15oftheseRegulations
committedbyabodycorporateisprovedtohavebeencommittedwiththeconsentor
connivanceof,ortobeattributabletoanyneglectonthepartof,anydirector,manager,
secretary,orothersimilarofficerofthebodycorporateoranypersonwhowaspurporting
toactinsuchcapacity,heaswellasthebodycorporateshallbeguiltyofthatoffenceand
shallbeliabletobeproceededagainstandpunishedaccordingly.
12.Regulationsnottoapplytocertaincreditsaleagreements
NothingintheseRegulationsshallapplyinrelationtoacreditsaleagreementunder
whichthepropertyinallthegoodspassesunconditionallytothebuyeronorbeforethe
deliveryofthegoodstohimandwhichprovidesforthewholeofthepurchasepriceor,
wherepartofthatpriceistobepaidbeforetheagreementisenteredinto,thebalanceto
bepaideitherbyapproximatelyequalinstalmentsatequalintervalsspreadoveraperiod
oflessthanninemonthscommencingwiththedateoftheagreementorbyonepayment
tobemadewithintheperiodofthreemonthscommencingwiththatdate.
13.GoodsaffectedbytheseRegulations
(1)ThegoodstowhichtheseRegulationsapplyare
(a) goods(whetherneworsecondhand)ofanyofthedescriptionsspecifiedin
items1to22inclusiveinPartoftheFirstScheduletotheseRegulationsnot
beinggoodsofadescriptionspecifiedinPartofthatSchedule;
[FirstSchedule.]
(b) anyothergoods(includinggoodsofthedescriptionspecifiedinPartofthe
FirstScheduletotheseRegulations)comprisedinahirepurchaseorcredit
saleagreementwithgoodstowhichtheseRegulationsapplybyvirtueofsub
paragraph(a)ofthisparagraph.
(2)TheprovisionsofPartoftheSecondScheduletotheseRegulationsshallapply
forthepurposeofdeterminingwhethertherequirementsspecifiedinparagraph2ofPart
ofthatSchedulehavebeencompliedwith.
[SecondSchedule.]
14.Methodofcalculatingtruerateofinterest
Thetruerateofinterestrequiredtobestatedinthenoteormemoranduminaccor
dancewiththeprovisionsofsection2(2)(b)oftheActshallbecalculatedinaccordance
withtheformulaprescribedintheFourthScheduletotheseRegulations.
[FourthSchedule.]
15.Monthlyreturns:penalties
(1)Asfromthespecifieddate,everypersoncarryingonthebusinessofdisposingof
goodsbymeansofhirepurchaseorcreditsaletransactionsorofmakingfundsavailable
forthepurposeofsuchtransactions(hereinaftercalled"thespecifiedperson")shallhalf
yearly,fromthe1stdayofApril1970completeForms1,2and3intheFifthScheduleto
theseRegulationsinquadruplicate(hereinaftercalled"thereturns")anddeliverthere
turnstotheMinister.
[FifthSchedule.L.N.46of1970.]
(2)Withoutprejudicetotheprovisionsofsection18(2)oftheAct(whichempowers
theMinisterorthePermanentSecretaryoftheMinistryofTradeandTourismtoauthor
iseanyofficeroftheMinistrytoenterpremiseswherehirepurchasebusinessisbeing
carriedonandinspectbooksordocumentsrelatingtosuchbusiness),onthereceiptofthe
returnsbytheMinister,theMinistermaywithinareasonabletimesendbypostanotice
tothespecifiedpersonrequestingthespecifiedpersontosupplysuchfurtherinformation
astheMinistermaythinknecessaryfortheproperunderstandingofthestatementscon
tainedinthereturnsdeliveredtotheMinisterbythespecifiedpersonanditshallbethe
dutyofthespecifiedpersontosupplytheinformationwithinfourteendaysofthereceipt
ofthenotice.
(3)Anypersontowhomthisregulationapplieswho
(a) withinthetimeprescribedinparagraph(1)ofthisregulationfailstodeliverthe
returnsdulycompletedtotheMinistershallbeguiltyofanoffenceandliable
onsummaryconvictiontoafineoftwohundrednaira;
(b) knowinglysuppliesanyinformationinthereturnswhichisfalseinanyma
terialparticularshallbeguiltyofanoffenceandliableonsummaryconviction
toafinenotexceedingonethousandnairaoratermofimprisonmentnotex
ceedingtwoyearsortobothsuchfineandimprisonment;
(c) wilfullyfailstosupplythefurtherinformationrequestedforbytheMinisterin
pursuanceofparagraph(2)ofthisregulationwithinfourteendaysofthere
ceiptoftheMinister'srequestforthefurtherinformationshallbeguiltyofan
offenceandliableonsummaryconvictiontoafinenotexceedingtwohundred'
naira.
SCHEDULES
FIRSTSCHEDULE
[Regulations7and13.]
PART
GoodstowhichtheseRegulationsapply

Column1
Descriptionofgoods
1.Radioreceivmgsetsandtelevisionreceivingsets
(includingportablesetsandsetsdesignedforusein
roadvehicles),whetherornotassembledorwhetheror
notcomplete,andpartsthereof;televisionaerials,
cathoderaytubes,loudspeakersandtelevisionconver
sionunits......................................................................
2.Gramophones,radiogramophones,recordplayers
andjukeboxes,taperecordersandpartsthereof.......
3.Spaceheatinginstallationsandappliancesofakind
designedexclusivelyormainlyfordomesticuse,and
partsthereof................................................................
4.Appliancesandapparatus,whethermechanically
operatedornot,beingappliancesorapparatusofakind
designedexclusivelyormainlyfordomesticuse,and
partsthereof,thefollowing
Dishwashers............................................................
Dryingcabinetsanddryingmachines......................
Washingmachinesandwashersexcludingwashing
machinesandwasherswhicharedesignedforheat
ingwaterbyelectricityorgasbutwhicharenototh
erwisedesignedforoperationbyelectricityorgas.
Ironingmachinesandirons......................................
Wringersandmangles.............................................
Pressurecookers......................................................
Floorpolishers..........................................................
Vacuumcleaners......................................................
Watersofteners.......................................................
Refrigeratorshavingastoragecapacitynotexceed
ing12cubicfeet.......................................................

Column2
Minimum
percentageof
cashprice
Percent
10
36
10
10
10
10
10
10
10
10
10
10
10
10
Column3
Maximumperiodfor
paymentof
balance
Months

36
36
36
36
36
36
36
36
36
36
36
36
Column1
Descriptionofgoods

Machinesformixing,extractingandpreparationof
foodanddrink..........................................................
Electrickettlesandothercookingutensilsincorpo
ratingheatingelements,includingelectrichotplates
Dryshavers,electricallyoperated............................
Sewingmachines......................................................
Knittingmachines.....................................................
Hairdryingmachines................................................
Electricblankets.......................................................
Electricgeneratingplant..........................................
5.Photographiccamerasandphotographicenlargers
andlensestherefor,projectorsandother
photographic
equipmentnotdesignedspecificallyforindustrial,sci
entificorcommercialuse............................................
6.Binoculars,monocularsandtelescopes.................
7.Lawnmowersandgardenrollers.............................
8.Clocksandwatches.................................................
9.Furniture(includingshopandofficefurnitureand
fittings,lampstandards,lampshadesandgardenfur
niture)otherthanfurnitureofaspecialisedtype
unsuit
ablefordomesticuse;andfloorcoverings..................
10.Sinkunitsandparts,baths,basinsandbathroom
fittings..........................................................................
11.Mattressesandoverlays.......................................
12.Sectionalshedsandgaragesandothersectionalor
prefabricatedbuildings................................................
13.Trunks,bagsandsuitcases....................................
14.Jewelleryandimitationjewellery........................
15.Bicyclesandtricyclesnotmechanicallypropelled
16.Caravansandtrailers...........................................

Column2

Minimum
percentageof
cashprice
Percent

10
10
10
10
10
10
10
10

10
10
10
10
10
10
10
10
10
10
10
10

Column3
Maximum
period
forpaymentof
balance
Months

36
36
36
36
36
36
36
36
36
36
36
36

36
36
36
36
36
36
36
36

Column1
Descriptionofgoods

Column2
Minimum
percentageof
cashprice
Percent

Column3
Maximumperiod
forpaymentof
balance
Months

17.Washingmachinesandwasherswhicharede
signedforheatingwaterbyelectricityorgasbutwhich
arenototherwisedesignedforoperationbyelectricity
orgas,includingwashboilersandcoppers.............................
18.Cookers,includingsolidfuelcookers,designed
exclusivelyormainlyfordomesticuse..................................
19.Waterheatingappliances.................................................
20.(a)Mechanicallypropelledroadvehiclescon
structedoradaptedforthecarriageofpassengersor
goods,andpartsthereof(includingchassis),mechani
callypropelledbicyclesandtricycles(otherthanthose
describedinhead(d)ofthisitem),andsidecars....................
(b)Auxiliaryunitswhereofthecylindercapacitydoes
notexceed50cubiccentimetres,designedoradapted
forthepropulsionofbicyclesandtricycles.............................
(c)Auxiliaryunitswhereofthecylindercapacityex
ceeds50cubiccentimetres,designedoradaptedforthe
propulsionofbicyclesandtricycles........................................
(d)Mechanicallypropelledbicyclesandtricycles
whereofthecylindercapacityoftheenginedoesnot
exceed50cubiccentimetres,beingbicyclesandtricy
clesequippedwithpedalsbymeanswhereoftheyare
capableofbeingpropelled....................................................
21.Aircraft,includinggliders..................................................
22.Shipsandboats.................................................................
23.Goodsofanydescriptionnotspecifiedinanyother
iteminthisPartofthisSchedulecomprisedinahire
purchaseorcreditsaleagreementwithgoodsofade
scriptionsospecified.

10
10
10
20
10
20
1O
1O
10
Thelowestper
centagesetout
inthiscolumnin
relationto
goods,described
inanyother
item,comprised
intheagreement

48
48
48
36
36
36
36
36
36
Thelongestpe
riodsetoutin
thiscolumnin
relationto
goods,described
inanyother
item,comprised
intheagreement

PART
Goods(beinggoodsincludedinadescriptionofgoodsinPartIofthisSchedule)to
whichtheseRegulationsdonotapplyunlesswithinitem23ofthatpart
1.Ambulances.
2. Invalidcarriages.
3. Vehiclesspeciallyconstructedoradaptedfordisabledpeople.
4. Medical,surgical,dentalandveterinaryappliances,equipmentandapparatus.
5.Seagoingshipsconstructedoradaptedforthecommercialtransportationofgoodsorpas
sengers,tugsandfishingvessels;andgoodsdisposedoftoanypersonasequipmentforsucha
ship,tugorvesselownedorcharteredhyhim.
SECONDSCHEDULE
[Regulations3and4.]
Requirementsrelatingtohirepurchaseandcreditsaleagreements
PART
1.Theagreementcontainsinrespectofeachdescriptionofgoodsastatementofthecash
priceofthegoodsofthatdescriptioncomprisedintheagreementandofanyamountpayable
byinstalmentsundertheagreementfortheinstallationormaintenanceofthosegoods.
2.(1)Beforetheagreementwasenteredintoactualpaymentwasmadeinrespectofeach
descriptionofgoodscomprisedintheagreementofnotlessthananamountequaltotheper
centagespecifiedincolumn2ofPartoftheFirstScheduleinrelationtothatdescriptionof
goodsoftheaggregateof
(a)thecashpriceofthegoodsofthatdescriptioncomprisedintheagreement;and
(b)anyamountpayablebyinstalmentsundertheagreementfortheinstallationor
maintenanceofthegoodsofthatdescriptioncomprisedintheagreement.
(2)Incomputingforthepurposesofsubparagraph(1)ofthisparagraphthetotal
amounttobepaidbeforeanyagreementisenteredinto,accountmaybetakenofany
allowanceforanygoodstakeninpartexchangeforgoodscomprisedinthatagreement,
beinganallowancewhichisreasonableinrelationtothevalueofthegoodssotakenin
partexchange:
Providedthatthissubparagraphshallnotapplyinrespectofahirepurchaseorcredit
saleagreement,enteredintoafterthespecifieddate,whichcompriseswhollyorpartlyanyof
thegoodsdescribedinitem1inPartoftheFirstScheduleoraradiogramophone.
3.Theagreementprovidesforthepaymentofthebalancedueinrespectofeachdescription
ofgoodscomprisedthereineither
(a) byapproximatelyequalinstalmentsatequalintervalsspreadoveraperiod
commencingwiththedateoftheagreementnotexceedingthatspecifiedin
column3ofPartoftheFirstScheduleinrelationtothatdescriptionofgoods;or
(b) inthecaseofahirepurchaseagreement,byonepaymenttobemade
withinthreemonths.

PART
1.Therequirementspecifiedinparagraph2ofPartofthisScheduleshallbedeemednotto
becompliedwithinrelationtoahirepurchaseorcreditsaleagreementif,forthepurposeof
facilitatingthemakingofthepaymentmentionedinthatparagraphoranypartofthatpay
ment,moneyhasbeenborrowedorotherwiseacquiredoragreedorarrangedtobeborrowed
orotherwisetobeacquired(whetherbythepersonmakingthepaymentorbysomeotherper
son)underorasaresultofanagreementorarrangementtowhichoneormoreofthefollow
ingpersonsareparties,thatistosay
(a) thepersondisposingofthegoodsunderthehirepurchaseorcreditsaleagree
ment;
(b) apersonwhohassuppliedoristosupplythosegoodstoanotherperson
withaviewtotheirbeingdisposedofthereunder;
(c)themanufacturerofthegoodstobedisposedofthereunder.
THIRDSCHEDULE
[Regulation9.]
Substitutedagreements
1.Thesubstitutedagreementisinwritingandwasenteredintobeforethedatespecifiedin
thereplacedagreementforpaymentofthefinalinstalmentunderthereplacedagreementand
beforeallpaymentsduethereunderweremadeinfull.
2.Thesubstitutedagreementcomprisessomeorallofthegoodscomprisedinthereplaced
agreement.
3.Thesubstitutedagreementcomprisesgoodswhichwerenotcomprisedinthereplaced
agreementandthosegoodsaresolelyofanyofthedescriptions(otherthanfloorcoverings)
specifiedinitems9and11inPartoftheFirstSchedule.
4.Thesubstitutedagreementcontainsastatementofthecashpriceofthosegoodscomprised
inthesubstitutedagreementwhichwerenotcomprisedinthereplacedagreementandofthe
totalamountpayableinrespectofthosegoods.
5.Thesubstitutedagreement(notbeingasecondorlatersubstitutedagreementinaseriesof
suchagreementsenteredintobetweenthesameparties)wasenteredintoafterpaymenthad
beenmadeinrespectofthegoodscomprisedinthereplacedagreementofanamountequalto
notlessthan25percentofthetotalamountpayableinrespectthereof.
6.(1)Wherethetotalamountpayableinrespectofallgoodscomprisedinthesubstituted
agreementisinexcessofthetotalamountpayableinrespectofallthegoodscomprisedinthe
replacedagreementactualpaymentwasmadebeforethesubstitutedagreementwasentered
intooftheamountcalculatedbyreferencetotheexcessinaccordancewithsubparagraph(2)
ofthisparagraphinrespectofthegoodscomprisedinthesubstitutedagreement.
(2)Wherethesubstitutedagreementisoneofaseriesofsuchagreementsenteredinto
betweenthesamepartiesandthetotalamountpayableinrespectofallthegoodscomprisedin
anyagreementintheseriesearlierthanthereplacedagreementishigherthanthetotalamount
payableinrespectofallthegoodscomprisedinthereplacedagreementapaymentshallonly
berequiredtobemadeunderthissubparagraphifthetotalamountpayableinrespectofall
thegoodscomprisedinthesubstitutedagreementisinexcessofsuchhigheramountandin
suchcasethepaymentrequiredtobemadehereundershallbecalculatedaccordingly.

(3)Theamountrequiredtobepaidbyvirtueofsubparagraph(1)ofthisparagraphshall
beanamountequaltonotlessthan10percentofthatpartofthecashpriceofallthegoods
comprisedinthesubstitutedagreementwhichwerenotcomprisedinthereplacedagreement
whichbearsthesameproportiontothewholeofthatcashpriceofthosegoodsastheamount
oftherelevantexcessmentionedinsubparagraph(1)ofthisparagraphbearstothetotal
amountpayableinrespectofthosegoods.
(4)TheprovisionsofPartoftheSecondScheduletotheseRegulationsshall,with
requisitemodifications,applyforthepurposeofdeterminingwhetherthisparagraphhasbeen
compliedwithastheyapplyforthepurposeofdeterminingwhethertherequirementsspeci
fiedinparagraph2ofPartofthatSchedulehasbeencompliedwith.
7.Thesubstitutedagreementprovidesforthepaymentofthetotalamountpayable,orwhere
apaymentisrequiredtobemadebyvirtueofparagraph6ofthisSchedule,thebalanceclue,
inrespectofallthegoodscomprisedthereinbyapproximatelyequalinstalmentsatequalin
tervalsspreadoveraperiodnotexceeding36monthscommencingwiththedateofthesub
stitutedagreement.
8.Theamountofeachinstalmentisnotlessthantheamountoftheinstalmentlastdueunder
thereplacedagreementbeforethesubstitutedagreementwasenteredintoor,wherethesub
stitutedagreementisinsubstitutionformorethanoneagreement,notlessthantheaggregate
oftheinstalmentslastdueundereachofthereplacedagreementsbeforethesubstituted
agreementwasenteredinto.
9.Theintervalsatwhichinstalmentsarepayablearenotlongerthantheintervalsatwhich
theinstalmentswerepayableunderthereplacedagreementimmediatelybeforethesubstituted
agreementwasenteredintoor,wherethesubstitutedagreementisinsubstitutionformore
thanoneagreement,notlongerthantheshortestintervalsatwhichtheinstalmentswerepay
ableunderanyreplacedagreementimmediatelybeforethesubstitutedagreementwasentered
into.
FOURTHSCHEDULE
[Regulation14.]
Formulaforcalculatingtruerateofinterestorcharge
Thetruerateofinterestisrepresentedbythefollowingformula
200md
p(n+1)+d/3(n1)
where,
(i) "m"isthenumberbywhichtheperiodinrespectofwhicheachinstalment
ispayablemustbemultipliedinordertobeequaltoaperiodof12months;
(ii) "d"isthedifferencebetweenthehirepurchasepriceandthecashpriceof
thegoods;
(iii)"p"isthedifferencebetweenthecashpriceandthedepositpaid;and
(iv)"n"isthetotalnumberofinstalmentspayable.

FIFTHSCHEDULE
[Regulation15.]
Returns
FORM1
NameofCompany..............................................................................................................................................
Address..............................................................................................................................................................
RETURNOFHIREPURCHASEANDCREDITSALESTRANSACTIONSFORTHEPERIODFROM................................................................................20.
.

TO...................................................................................
(Tobesubmittedinaccordancewithregulation15oftheHirepurchaseRegulations)

Column1 Column2 Column3 Column4 Column5 Column6

Categoryofgoods Transactions Cashdepositexpressedas Periodforpaymentof Truerateofinterest Amountofout
duringmonth percentageofcashprice balance chargedcalculatedi.a.w. standing
regulation14ofthe hires/salesatend
Regulations ofmonth
% Months %
No. Amount Min. Max. Predominant Min. Max. Predominant Min. Max. Predominant Percentage
N range range range N oftotal
Tractors,agriculturaland
irrigationmachineryand
implementsexcludingplant
andmachineryexcluding
motorvehicles,earthmoving
machinery.

FIFTHSCHEDULEcontinued
FORM1continued

Column1 Column2 Column3 Column4 ColumnS Column6

Categoryofgoods Transactions Cashdepositexpressedas Periodforpaymentof Truerateofinterest Amountofout
duringmonth percentageofcashprice balance chargedcalculatedi.a.w. standing
regulation14ofthe hires/salesatend
Regulations ofmonth
% Months %
No. Amount Min. Max. Predominant Min. Max. Predominant Min. Max. Predominant N Percentage
N range range range oftotal
Ambulances,lorriesandvans
designedforindustrialand
commercialuse.
Taxisandroadpassenger
vehicles.
Privatemotorcarsandmotor
cycles.
Domesticequipment.
Otherstobespecified.
.
SignatureofAuthorisedOfficer
Title........
Date..

F
I
F
T
H

S
C
H
E
D

o
n
d
t
STATEMENTOFASSESTSANDLIABILITIESASAT....................................................................................DAYOF......................................20.....................
i
N
n
Address..
u
RETURNOFREPOSSESSIONANDSURRENDERSOFGOODSCOVEREDBYHIREPURCHASEANDCREDITSALESAGREEMENTS
e
FORTHEPERIODFROM..20.TO.20.

(Tobesubmittedinaccordancewithregulation15oftheHirepurchaseRegulations)
F
Column3
O
M

NameofCompany..

Column1 Column2 Column4 Column5 Column6 Column7
Nameofhirer/buyer Descriptionofgoods Cashpriceofgoods Hirepurchaseprice Totalamountpaidby Reasonforreposses Remarks
ofgoods hirerlbuyerbefore sion/surrender
reposession/
surrender


SignatureofAuthorised
Title ......
Date

FIFTHSCHEDULEcontinued
FORM3
MONTHLYSTATEMENTOFASSESTSANDLIABILITIESASATDAYOF.20.
NameofCompany.
Address.
(Tobesubmittedinaccordancewithregulation15oftheHirepurchaseRegulations)

LIABILITIESNASSETSN

1.Capital1.Fixedassests
Authorised(a)Landandbuildingsincludingleaseholds.
Issued(b)Other.
Paidup
2.CapitalReserves2.Hirepurchaseandcreditsalesrepayableasfromthedate
ofthisreturn
(a)sharepremium.(a)within3months.
(b)Other(submitdetails).(b)within6months.
(c)within12months.
(d)laterthan12months.
3.Revenuereserve3.BlockDiscountAgreementsmaturingasfromthedate
ofthisreturn
(a)Generalreserve(a)within3months..
(b)profitandlossaccount(b)within6months...
(c)laterthanmonths......
4.Debentures..4.Othercurrentassets
(a)Dealerscurrentaccounts.
(b)Sundrydebtors..

FIFTHSCHEDULEcontinued
FORM3continued

LIABILITIES
5. Deposits
(a)Repayableondemand.
(b)Otherdepositsrepayableasfromthedateofthis
return
(i)within3months
(ii)between3and6months
(iii)between6and12months
(iv)laterthan12months

ASSETS
(c)Cashinhand
(d)Balancesheldwith
banks
(i)InNigeria
(ii)OutsideNigeria
5.Investments
(a)InNigeria
(i)Federal
Government
Securities
(ii)Subsidiariesofthiscompany
(iii)Other(submitdetails)
(b)OutsideNigeria

6.

Loansandadvancesfrom

(a) (i) BanksinNigeria(submitdetails)

(ii)

OtherinstitutionsinNigeria(submit
details).
(b) (i) BanksoutsideNigeria(submitdetails)
(ii)

OtherinstitutionsoutsideNigeria(submit
details

FIFTHSCHEDULEcontinued
FORM3continued

LIABILITIES
7.Othercurrentliabilities
(a)Dealerscurrentaccounts.
(b)Sundrycreditors..
(C)Currenttaxation......
8. Provisions
(a)Baddebt.
(b)Forfuturetaxation.
(C)Other(submitdetails)
9. Otherliabilities(submitdetails).

ASSETS
6.Otherassets(statedetails)

TOTALN___________
TOTALN_________ _

Ideclarethatthisstatementismadeupfromthebooksofthecompanyandthat,tothebestofmyknowledgeandbelief,itiscorrect.
AuthorisedOfficer...........................................................
Title.................................................................................
Date.................................................................................