The Commitment Letter To Pay Debt is a crucial document in Nigerian business and financial transactions, commonly used when a debtor needs to formally acknowledge and commit to paying an existing debt obligation. This document becomes particularly relevant in situations where there's a need to formalize payment arrangements, restructure existing debt, or provide additional assurance to creditors. It must comply with Nigerian Contract Law, the Money Lenders Act, and other relevant financial regulations. The letter typically includes detailed information about the debt's origin, current amount, payment terms, and consequences of default. It serves as strong evidence in debt recovery proceedings and can be used by both individuals and businesses. The document's formality and legal standing make it a preferred tool for creditors seeking to secure their rights while providing debtors with clear documentation of their payment obligations.

1. Letter Header: Formal letter heading including date, recipient's name and address, and reference number

2. Subject Line: Clear identification as 'Commitment Letter to Pay Debt'

3. Debt Acknowledgment: Clear statement acknowledging the exact amount owed and its origin

4. Original Debt Details: Description of how the debt was incurred, including dates and circumstances

5. Current Outstanding Amount: Precise statement of the current debt amount, including any interest or penalties

6. Payment Commitment: Specific commitment to pay, including payment schedule and method

7. Default Consequences: Statement of consequences if payment commitments are not met

8. Declaration of Free Will: Statement that the commitment is made voluntarily and without duress

9. Signature Block: Space for debtor's signature, date, and witness signatures