This Payday Loan Agreement is designed for use in Nigeria by licensed money lenders and financial institutions offering short-term, high-interest loans to employed individuals. The agreement is structured to comply with the Central Bank of Nigeria's regulations, including the Consumer Protection Framework 2016 and state-specific Money Lenders Laws. It is typically used for loans that are to be repaid on the borrower's next payday or within a short period, usually not exceeding 31 days. The document includes mandatory disclosures of interest rates, fees, and APR calculations as required by Nigerian banking regulations, along with clear terms for default and collection. This template incorporates recent regulatory requirements for digital lending platforms while maintaining traditional provisions for conventional lenders.

1. Parties: Identification of the lender and borrower with their full legal names, addresses, and contact information

2. Background: Brief context explaining the purpose of the agreement and the nature of payday lending

3. Definitions: Definitions of key terms used throughout the agreement including 'Loan Amount', 'Repayment Date', 'Interest Rate', etc.

4. Loan Details: Specific details of the loan including principal amount, interest rate, APR, and repayment date

5. Repayment Terms: Details of how and when repayment should be made, including payment methods and schedule

6. Interest and Charges: Breakdown of interest calculation, processing fees, and any other charges in compliance with CBN guidelines

7. Representations and Warranties: Borrower's confirmations regarding their ability to repay, employment status, and accuracy of provided information

8. Default and Consequences: Definition of what constitutes default and the consequences, including late payment fees and collection procedures

9. Termination: Circumstances under which the agreement can be terminated by either party

10. Governing Law: Specification that the agreement is governed by Nigerian law and relevant state regulations