Document background
The Debt Facility Agreement is a crucial financing document used in the Nigerian market when a lender provides credit facilities to a borrower. It serves as the primary agreement governing the lending relationship and must comply with Nigerian banking and financial services regulations, including BOFIA 2020 and CBN guidelines. The agreement is typically used for corporate borrowing, project finance, or working capital facilities, and can be structured as either bilateral or syndicated arrangements. It includes detailed provisions on facility terms, security arrangements, conditions for drawdown, covenant packages, and enforcement mechanisms. The document must be properly stamped under Nigerian law to be admissible in court and may require registration with relevant Nigerian authorities depending on the security package.
