The Simple Promissory Note No Interest is commonly used in Nigeria for documenting straightforward lending arrangements where no interest is to be charged. This document is particularly useful for loans between related parties, such as family members, friends, or affiliated businesses, where the lender wishes to provide financial assistance without profit motivation. Under Nigerian law, the document must contain specific elements to be valid, including an unconditional promise to pay, a specified sum, and the parties' details. The absence of interest makes it compliant with various religious and ethical lending principles. While simpler than a full loan agreement, it still creates a legally enforceable obligation under Nigerian law and must comply with the Bills of Exchange Act and Stamp Duties requirements. This type of promissory note is frequently used for short to medium-term lending arrangements where the parties have a pre-existing relationship and prefer a straightforward documentation approach.

1. Date and Place of Execution: The date and location where the promissory note is executed, which is crucial for enforcement and limitation periods

2. Maker Information: Full legal name and address of the person/entity promising to pay (the maker)

3. Payee Information: Full legal name and address of the person/entity to whom payment is promised (the payee)

4. Promise to Pay: Clear, unconditional promise to pay a specific sum of money

5. Payment Amount: The principal amount in both numbers and words

6. Payment Due Date: Specific date or identifiable event when payment is due

7. Signature Block: Space for maker's signature, witness signatures, and any required attestation