The ACH Agreement Form serves as a critical legal instrument in Nigeria's electronic payment ecosystem, facilitating automated clearing house transactions between financial institutions and their customers. This document is essential when establishing electronic payment processing relationships, particularly for recurring payments, direct deposits, or bulk payment processing. The agreement ensures compliance with Central Bank of Nigeria (CBN) regulations, including the CBN Guidelines on Electronic Payment and BOFIA 2020, while addressing key aspects such as transaction security, authorization procedures, and risk management. It's designed to protect both the financial institution and the customer by clearly defining roles, responsibilities, and liabilities in the context of Nigerian banking and payment systems regulations.

1. Parties: Identifies and provides details of the financial institution and the customer entering into the ACH agreement

2. Background: Explains the context of the agreement and the ACH services to be provided

3. Definitions: Defines key terms used throughout the agreement, including technical banking and ACH-specific terminology

4. Services and Implementation: Details the specific ACH services covered by the agreement and implementation requirements

5. Authorization and Account Access: Outlines the authorization process for ACH transactions and account access permissions

6. Security Procedures: Specifies security measures, authentication requirements, and protocols for ACH transactions

7. Fees and Charges: Details all applicable fees, charges, and payment terms for ACH services

8. Obligations and Responsibilities: Lists the duties and responsibilities of both parties in relation to ACH transactions

9. Representations and Warranties: Contains statements of fact and promises made by both parties

10. Confidentiality and Data Protection: Addresses the handling of confidential information and compliance with NDPR requirements

11. Term and Termination: Specifies the duration of the agreement and conditions for termination

12. Liability and Indemnification: Outlines the scope of liability and indemnification obligations of both parties

13. Dispute Resolution: Details the process for handling disputes related to ACH transactions

14. Governing Law and Jurisdiction: Specifies Nigerian law as governing law and establishes jurisdiction