The Payment Acknowledgement of Debt Letter is a critical instrument in Nigerian debt management and recovery processes. It is commonly used when a debtor needs to formally recognize an existing debt obligation and establish clear payment terms. This document becomes particularly important in situations where there's a need to formalize an existing debt arrangement, restructure payment terms, or create legally binding evidence of the debt. The letter must comply with Nigerian contract law and the Evidence Act 2011, making it admissible in Nigerian courts. It's essential for both commercial and personal debt situations, providing protection for creditors while giving debtors a clear framework for debt settlement. The document can be used to restart the limitation period for debt collection and may include various elements such as security arrangements, guarantor commitments, or specific payment schedules.

1. Letter Header: Date, sender's details, recipient's details, and reference number

2. Subject Line: Clear identification as 'Acknowledgement of Debt'

3. Debt Acknowledgment Statement: Clear statement acknowledging the existence and amount of the debt

4. Debt Details: Specific amount owed, origin of debt, and date when debt was incurred

5. Payment Commitment: Clear statement of intention and commitment to pay the debt

6. Payment Terms: Specified payment schedule, method of payment, and payment deadline(s)

7. Legal Declaration: Statement confirming the acknowledgment is made freely and understanding legal implications

8. Signature Block: Space for debtor's signature, witness signatures, and date