What is Due Diligence Check?

This is an investigation of a business or person prior to signing a contract, or an act with a certain standard of care.

Over the past decade due diligence has been an important/essential part of employment due to high rate of crime and It can be a legal obligation, but the term will more commonly apply to voluntary investigations.

A common example of due diligence in various industries is the process through which a potential acquirer evaluates a target company or its assets for an acquisition. The theory behind due diligence holds that performing this type of investigation contributes significantly to informed decision making by enhancing the amount and quality of information available to decision makers and by ensuring that this information is systematically used to deliberate in a reflexive manner on the decision at hand and all its costs, benefits, and risks

Criminal law

In criminal law, due diligence is the only available defense to a crime that is one of strict liability (i.e., a crime that only requires an actus reus and no mens rea). Once the criminal offence is proven, the defendant must prove on balance that they did everything possible to prevent the act from happening. It is not enough that they took the normal standard of care in their industry – they must show that they took every reasonable precaution.

Employees are often a business’s most valuable investment. While identifying, screening, onboarding, and training new employees take extensive resources, it’s in every business’s best interest to get the process right to hire good people. Hiring the wrong person not only costs time and money, it can have larger legal and reputational implications.

Given the importance of making a good hiring choice, many businesses choose to conduct background checks on job candidates. While background checks may be standard practice for many larger organizations, small businesses have much to gain, since a single employee issue may have a large impact. Regardless of size, businesses should understand both the benefits and limitations of employee background checks so that they can choose the service that will help them screen for the best applicants.

Employee Background Checking Services in Nigeria has become very vital when hiring new employees, admitting new students into an institution or any case where a certificate needs to be tendered. It is also very vital when it comes to questioning the integrity of existing staffs of a company/organization.

It can be said that background checks services has been underused in Nigeria by employers.


Research has shown that:-

  • About 30% of candidates provide incomplete or inaccurate information in employment applications
  • About 5% of candidates do not disclose criminal records.
  • Up to 70% of people when surveyed admit to having lied when preparing a CV


Important Steps to take when Carrying out Due Diligence Checks

  1. Address Verification
  2. ID Confirmation
  3. Résumé Verification
  4. BVN Confirmation
  5. Confirmation of Referees/Guarantor’s ID
  6. Police Profiling, Criminal Records and Finger prints
  7. Contact Previous Employers 
Benefits/ Reasons to Run a Pre-Employment Background Check
  • It highlights criminal history.
  • It flags past infractions that might impact an individual’s ability to perform a job.
  • It fulfills due diligence and avoids liability.
  • It gives you a full picture of your applicant.
  • It keeps employees and customers safe.
  • It helps you keep a workplace drug-free.
  • It highlights dishonesty.
  • It verifies education and certifications.
  • It provides peace of mind.
  • It helps you ensure that you’ve chosen the right hire.

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