The Promissory Payment Agreement is a crucial financial instrument used in Nigerian business and personal transactions to formalize debt obligations. It is commonly employed when parties need to document a loan, deferred payment arrangement, or other financial commitment under Nigerian law. The document must comply with the Bills of Exchange Act, Cap B8, Laws of the Federation of Nigeria 2004, and other relevant financial regulations. It typically includes detailed payment terms, interest calculations, default provisions, and any security arrangements. This type of agreement is particularly valuable in business transactions where formal documentation of payment obligations is essential for legal certainty and potential enforcement.

1. Parties: Identifies the Promisor (debtor) and Promisee (creditor) with their full legal names and addresses

2. Background: States the context of the debt obligation and the intention to create a legally binding promissory note

3. Definitions: Defines key terms used throughout the agreement

4. Promise to Pay: Clear statement of the principal amount, currency, and unconditional promise to pay

5. Payment Terms: Specifies the payment schedule, installment amounts, and payment methods

6. Interest: Details the interest rate, calculation method, and payment frequency

7. Events of Default: Defines what constitutes a default and the consequences thereof

8. Acceleration: Circumstances under which the full amount becomes immediately due and payable

9. Representations and Warranties: Basic declarations about the parties' capacity and authority to enter into the agreement

10. Notices: How and where formal communications between parties should be made

11. Governing Law and Jurisdiction: Confirms Nigerian law as governing law and specifies jurisdiction for disputes

12. Execution: Signature blocks and attestation requirements