The Promissory Note with Personal Guarantee is commonly used in Nigerian business and lending transactions where additional security is required beyond the primary debtor's promise to pay. This document type combines two distinct but related legal obligations: the primary debtor's unconditional promise to pay and a guarantor's commitment to fulfill that obligation if the primary debtor defaults. It is particularly useful in situations where the creditor requires additional assurance of repayment but formal collateral (such as property or equipment) is either unavailable or impractical. The document must comply with Nigerian legal requirements, including proper execution, stamping, and witness attestation. It offers creditors enhanced security while providing a relatively straightforward and cost-effective way to document both the primary debt and the guarantee obligation.

1. Date and Place of Execution: Specifies when and where the promissory note is executed

2. Parties: Identifies the Maker (Promisor), Payee (Promisee), and Guarantor

3. Promise to Pay: Clear and unconditional promise to pay a specific sum of money

4. Principal Amount: States the exact amount of money being promised

5. Interest Rate: Specifies the interest rate (if applicable) and how it is calculated

6. Payment Terms: Details of when and how payment(s) will be made

7. Guarantee Agreement: Terms of the personal guarantee, including guarantor's obligations and extent of liability

8. Default Provisions: Consequences of default and remedies available to the payee

9. Representations and Warranties: Statements of fact by both the maker and guarantor about their capacity and authority

10. Notice Requirements: How and where notices between parties should be delivered

11. Governing Law: Specifies Nigerian law as the governing law

12. Signature Block: Space for signatures of all parties and witnesses