THE HIRER’S RIGHT TO WALK AWAY AND THE OWNER’S RIGHT TO REPOSSESS: REVISITING TERMINATION UNDER NIGERIAN HIRE-PURCHASE LAW

Abstract

This article critically examines the legal framework governing the termination of hire-purchase agreements in Nigeria, with a focus on the rights and remedies available to both the owner and the hirer under common law and the Hire-Purchase Act. Under common law, termination is primarily shaped by principles of contract and bailment, which grant the hirer an unfettered right to terminate and allow the owner to reclaim goods in the event of breach. However, the Nigerian Hire-Purchase Act introduces statutory modifications aimed at balancing these rights, particularly by providing protective mechanisms for the hirer and regulating the process of repossession. Key provisions such as Sections 8 to 10 of the Act impose procedural conditions on termination and empower the courts to supervise or restrict recovery by the owner. This article adopts a doctrinal and comparative approach to analyse the substantive and procedural aspects of termination under both legal regimes. It also assesses judicial interpretations that have influenced the practical application of these rules. In doing so, the paper highlights existing legal gaps, enforcement challenges, and ambiguities in the law. The article concludes by proposing legislative and judicial reforms to ensure greater fairness, predictability, and consumer protection in hire-purchase transactions in Nigeria.