The Letter of Intent for Financial Assistance is a crucial preliminary document used in Nigerian financial transactions when one party is considering providing financial support to another. It serves as a roadmap for negotiations and demonstrates serious intent while maintaining flexibility before final commitments. This document typically precedes more detailed financing agreements and is particularly important in the Nigerian business environment where formal documentation of intentions helps establish trust and facilitate regulatory compliance. While most provisions are non-binding, certain elements like confidentiality and exclusivity may be legally enforceable. The letter should align with Nigerian banking regulations, financial laws, and standard business practices while clearly outlining the proposed terms, conditions, and timeline for the potential financial assistance.

1. Sender and Recipient Details: Full names, addresses, and contact information of both parties

2. Date: Date of the letter's issuance

3. Subject Line: Clear indication that this is a Letter of Intent for Financial Assistance

4. Introduction: Opening paragraph identifying the parties and purpose of the letter

5. Purpose and Background: Brief description of the circumstances leading to the potential financial assistance

6. Proposed Terms: Outline of the key financial terms including amount, purpose, and general conditions

7. Timeline: Proposed schedule for finalizing the financial assistance arrangement

8. Due Diligence: Statement regarding any required due diligence process

9. Confidentiality: Statement regarding the confidential nature of the discussions and documents

10. Non-Binding Nature: Clear statement that the letter is non-binding except for specified clauses

11. Exclusivity: Statement regarding any exclusive negotiation period

12. Closing and Signatures: Formal closing, signature blocks for both parties