Due Diligence Form Template for Nigeria

A Due Diligence Form helps businesses and investors thoroughly check potential partners or investments before making major decisions in Nigeria. This detailed questionnaire captures essential information about a company's finances, legal standing, ownership structure, and compliance with Nigerian corporate regulations.

Common in mergers, acquisitions, and major business deals, these forms follow guidelines set by the Corporate Affairs Commission (CAC) and Securities Exchange Commission (SEC). They protect organizations by uncovering potential risks, verifying claims, and ensuring compliance with local business laws - making them crucial tools for smart business decisions in Nigeria's dynamic market.

Use a Due Diligence Form when entering significant business relationships in Nigeria, especially before mergers, acquisitions, or major investments. It's essential during company valuations, joint venture negotiations, and when vetting potential business partners or suppliers for long-term contracts.

The form becomes particularly important when dealing with transactions that fall under SEC oversight, CAC regulations, or when your company needs to verify claims about assets, liabilities, or regulatory compliance. Having this documentation ready helps speed up deal closings, protects your interests, and demonstrates professional due care to stakeholders and regulatory bodies.

• Financial Due Diligence Form: Focuses on financial records, assets, liabilities, and cash flow analysis - commonly used for mergers and acquisitions in Nigeria
• Legal Due Diligence Form: Examines corporate compliance, litigation history, and regulatory standings with CAC and SEC requirements
• Operational Due Diligence Form: Reviews business processes, equipment, facilities, and operational capabilities
• Environmental Due Diligence Form: Assesses environmental compliance and risks, crucial for industries regulated by Nigerian environmental agencies
• Commercial Due Diligence Form: Evaluates market position, customer relationships, and competitive landscape

• Business Owners and Investors: Initiate and review Due Diligence Forms when considering major investments or partnerships in Nigerian markets
• Corporate Lawyers: Draft and customize forms to meet specific transaction requirements while ensuring compliance with Nigerian business laws
• Financial Analysts: Evaluate and verify financial information provided in the forms, particularly for mergers and acquisitions
• Company Directors: Approve and sign off on completed forms, taking responsibility for accuracy of disclosed information
• Regulatory Bodies: Review forms for compliance with CAC and SEC requirements during major corporate transactions

• Company Information: Gather complete legal name, RC number, registered address, and ownership structure details from CAC records
• Financial Documents: Collect recent audited financial statements, tax clearance certificates, and bank statements
• Legal Status: Document current licenses, permits, pending litigation, and regulatory compliance certificates
• Transaction Scope: Define clear objectives, timeline, and specific areas requiring investigation
• Verification Process: Create a checklist for document authenticity and establish a secure system for confidential information sharing
• Digital Platform: Use our automated system to generate a comprehensive, legally-compliant Due Diligence Form tailored to Nigerian requirements

• Company Details Section: Full legal name, RC number, registered address, and directors' information as registered with CAC
• Confidentiality Clause: Clear terms for handling sensitive business information under Nigerian data protection laws
• Scope Definition: Detailed outline of areas under investigation and specific documentation requirements
• Compliance Declaration: Statement confirming adherence to Nigerian regulatory requirements and SEC guidelines
• Verification Process: Methods for authenticating provided information and supporting documents
• Authorization Block: Designated spaces for signatures, dates, and company seals as required by Nigerian law
• Legal Framework: Reference to applicable Nigerian laws and jurisdiction specifications

A Due Diligence Form differs significantly from a Due Diligence Checklist in both scope and legal weight. While they work together in the due diligence process, each serves a distinct purpose in Nigerian business transactions.

• Documentation Depth: Due Diligence Forms contain detailed responses and supporting evidence, while checklists simply outline required items for investigation
• Legal Standing: Forms serve as official records of disclosed information with legal implications, whereas checklists are internal tools without direct legal effect
• Verification Process: Forms require formal verification and signatures from authorized parties, while checklists mainly track completion status
• Regulatory Compliance: Forms must meet specific CAC and SEC requirements for corporate transactions, but checklists can be more flexible and company-specific
• Usage Timeline: Forms document the final findings, while checklists guide the investigation process from start to finish