The Proforma Invoice Letter is a crucial commercial document widely used in Nigerian and international trade transactions. It serves as a preliminary bill of sale or quotation, issued by sellers to potential buyers before the final completion of a sale transaction. This document is particularly important in scenarios requiring customs clearance, advance payments, or letter of credit arrangements. The Proforma Invoice Letter must comply with Nigerian commercial law, including the Sales of Goods Act and Value Added Tax Act, and typically includes detailed information about the seller and buyer, comprehensive product descriptions, pricing, payment terms, and delivery conditions. While not a final invoice, it often serves as a binding document for customs purposes and can be used to initiate payment processes, especially in international trade. The document is essential for both domestic and international transactions, helping businesses maintain clear records and comply with regulatory requirements.

1. Company Letterhead Details: Sender's company name, address, registration number, contact details, and tax identification numbers

2. Date and Reference Number: Issue date of the proforma invoice and unique reference number for tracking

3. Buyer Information: Complete details of the buyer including name, address, and contact information

4. Product/Service Details: Detailed description of goods/services, including quantity, unit price, and specifications

5. Pricing Breakdown: Itemized list of costs, subtotal, applicable taxes, and total amount

6. Payment Terms: Payment conditions, method of payment, and banking details

7. Delivery Terms: Shipping method, delivery timeline, and Incoterms if applicable

8. Validity Period: Duration for which the proforma invoice remains valid

9. Authorization: Signature block with name and position of authorized representative