The Business Funding Agreement serves as a critical legal instrument in Nigerian commercial transactions, facilitating structured funding arrangements between funding providers and businesses seeking capital. This document is essential when businesses require substantial funding for expansion, working capital, project execution, or other commercial purposes. It provides a comprehensive framework that addresses key aspects including funding terms, security arrangements, conditions precedent, representations and warranties, and events of default. The agreement ensures compliance with Nigerian financial regulations, including the Banks and Other Financial Institutions Act (BOFIA) and Companies and Allied Matters Act (CAMA) 2020. It is particularly relevant in today's Nigerian business environment where access to formal funding requires robust legal documentation that protects all parties' interests while maintaining regulatory compliance.

1. Parties: Identifies and provides full details of all parties to the agreement, including their legal status and registered addresses

2. Background: Sets out the context of the agreement and the parties' intentions

3. Definitions and Interpretation: Defines key terms used throughout the agreement and establishes interpretation rules

4. Purpose and Amount of Funding: Specifies the total funding amount and its intended use

5. Conditions Precedent: Lists conditions that must be satisfied before funding is provided

6. Disbursement Terms: Details how and when the funding will be released

7. Repayment Terms: Specifies repayment schedule, amounts, and mechanisms

8. Interest and Fees: Details all applicable interest rates and fees

9. Security: Outlines any security or collateral arrangements

10. Representations and Warranties: Contains statements of fact and assurances from the parties

11. Covenants: Sets out ongoing obligations of the parties

12. Events of Default: Defines circumstances constituting default and consequences

13. Termination: Specifies how the agreement can be terminated and the consequences

14. Notices: Details how formal communications between parties should be made

15. Governing Law and Jurisdiction: Specifies Nigerian law as governing law and jurisdiction for disputes

16. Boilerplate Clauses: Standard contractual provisions including entire agreement, severability, and force majeure