The Financial Authorization Letter is a crucial document in Nigerian business and banking operations, used when an individual or entity needs to delegate financial authority to others. This document, regulated under Nigerian banking laws including BOFIA 2020 and anti-money laundering legislation, provides a formal mechanism for authorizing specific financial transactions and activities. It is commonly used in situations requiring delegation of financial responsibilities, such as corporate banking arrangements, international business operations, or when principal signatories are unavailable. The letter must include specific details about the scope of authority, transaction limits, duration, and authorized parties, while ensuring compliance with Nigerian banking regulations and documentary requirements. It serves as a protective measure for all parties involved by clearly defining the parameters of the authorized activities and establishing clear accountability structures.

1. Letter Header and Date: Official letterhead, current date, and reference number if applicable

2. Recipient Details: Full name and address of the financial institution or entity to whom the authorization is being granted

3. Subject Line: Clear indication that this is a Financial Authorization Letter

4. Authorizing Party Details: Full legal name, address, and identification details of the person/entity granting the authorization

5. Account Information: Relevant bank account numbers and types of accounts covered by the authorization

6. Scope of Authorization: Specific details of what financial activities are being authorized

7. Duration of Authority: Time period for which the authorization is valid

8. Authorized Transaction Limits: Maximum transaction amounts and any applicable restrictions

9. Signature Block: Space for authorized signature(s), with name(s) and title(s) clearly printed