The Commercial Loan Agreement is a fundamental financing document used in Nigerian business transactions when a corporate entity requires substantial funding for business operations, expansion, or specific projects. This agreement, governed by Nigerian law, must comply with various regulations including the Banks and Other Financial Institutions Act (BOFIA) 2020, Central Bank of Nigeria guidelines, and other relevant financial legislation. It typically includes detailed provisions for loan disbursement, security arrangements, repayment terms, events of default, and enforcement mechanisms. The document is essential for protecting both lender and borrower interests while ensuring the transaction meets regulatory requirements for commercial lending in Nigeria. It's particularly important for documenting large-scale corporate loans and establishing legally enforceable rights and obligations between the parties.

1. Parties: Identification of the lender and borrower with their full legal names, registration details, and addresses

2. Background: Context of the loan agreement, including the borrower's request for the facility and the lender's agreement to provide it

3. Definitions and Interpretation: Detailed definitions of terms used throughout the agreement and rules for interpreting the agreement

4. The Facility: Details of the loan amount, purpose, and type of facility being provided

5. Conditions Precedent: Conditions that must be satisfied before the loan becomes available

6. Drawdown: Procedures and requirements for requesting and receiving loan disbursements

7. Interest: Interest rate, calculation method, payment periods, and default interest provisions

8. Repayment: Terms and schedule for repayment of the principal amount

9. Fees and Expenses: All fees, charges, and expenses payable by the borrower

10. Representations and Warranties: Statements of fact and assurances given by the borrower

11. Covenants: Positive and negative obligations of the borrower during the loan term

12. Events of Default: Circumstances that constitute default and their consequences

13. Security: Core security arrangements required for the loan

14. Governing Law and Jurisdiction: Specification of Nigerian law as governing law and jurisdiction for disputes

15. Notices: Process and requirements for formal communications between parties

16. Boilerplate Provisions: Standard clauses including severability, amendments, and entire agreement