The Credit Facility Agreement serves as the primary documentation for lending arrangements in Nigeria, establishing the legal relationship between financial institutions and borrowers. This document is essential when a lender provides financial accommodation to a borrower, whether for working capital, expansion, asset acquisition, or other business purposes. The agreement must comply with Nigerian banking laws, particularly the Banks and Other Financial Institutions Act (BOFIA) 2020 and Central Bank of Nigeria regulations. It typically includes detailed provisions on facility terms, security arrangements, borrower obligations, and lender's rights, while incorporating local legal requirements such as stamp duty obligations and registration requirements. The document is adaptable to various facility types, including term loans, overdrafts, and revolving credit facilities, making it fundamental for commercial lending transactions in Nigeria.

1. Parties: Identification of the lender and borrower(s), including their registered addresses and registration numbers

2. Background: Brief context of the facility arrangement and purpose of the loan

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

4. The Facility: Core terms of the credit facility including amount, purpose, and availability period

5. Conditions Precedent: Documents and conditions required before the facility becomes available

6. Drawdown: Procedures and requirements for drawing down the facility

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

8. Repayment: Terms and schedule for repayment of the facility

9. Fees and Expenses: All fees payable including arrangement fees, commitment fees, and other charges

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

11. Covenants: Positive and negative obligations of the borrower during the facility period

12. Events of Default: Circumstances that would trigger default and lender's remedies

13. Changes to Parties: Provisions regarding assignment and transfer rights

14. Notices: Communication methods and contact details for formal notices

15. Calculations and Certificates: Provisions regarding calculations and certifications by the lender

16. Partial Invalidity: Severability provisions if parts of the agreement become invalid

17. Remedies and Waivers: Rights and remedies of the lender and waiver provisions

18. Amendments and Waivers: Process for making changes to the agreement

19. Governing Law: Nigerian law as governing law and jurisdiction provisions

20. Enforcement: Jurisdiction and dispute resolution provisions