Document background
The Advance Payment Contract is essential in Nigerian business transactions where substantial upfront funding is required before the commencement of work or delivery of goods/services. This document type is commonly used in large-scale projects, equipment procurement, and construction contracts where suppliers or contractors require initial funding to mobilize resources or commence work. It includes comprehensive provisions for protecting the interests of both parties, incorporating necessary safeguards such as bank guarantees or bonds as required under Nigerian law. The contract ensures compliance with Nigerian financial regulations, including the Central Bank of Nigeria's guidelines and anti-money laundering requirements. It is particularly crucial in sectors requiring significant capital investment or long lead times for delivery.
