A Debt Acknowledgment Letter is a crucial document in Nigerian debt recovery and management practices, used when there is a need to formally document an existing debt obligation or to restart the limitation period for debt collection. This document is particularly important as it provides clear evidence of the debt's existence and the debtor's acceptance of the obligation. The letter should comply with Nigerian contract law requirements and may need to be properly stamped under the Stamp Duties Act to be admissible in court. It's commonly used in both business and personal contexts, and can be especially valuable when restructuring payment terms or formalizing previously informal debt arrangements. The document typically includes specific details about the debt, including the amount, origin, interest (if any), and payment terms. For corporate debtors, proper authorization is required, and when involving illiterate parties, additional requirements under the Illiterate Protection Act must be met.

1. Sender's Details: Full name and address of the debtor

2. Date: Date of the letter (important for limitation periods)

3. Recipient's Details: Full name and address of the creditor

4. Subject Line: Clear reference to debt acknowledgment

5. Debt Acknowledgment Statement: Clear and unequivocal statement acknowledging the debt obligation

6. Debt Details: Specific amount owed, original date of debt, and any interest accrued

7. Basis of Debt: Origin or reason for the debt

8. Signature Block: Debtor's signature, name, and date of signing