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Revolving Line Of Credit Agreement Template for Nigeria

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Key Requirements PROMPT example:

Revolving Line Of Credit Agreement

"I need a Revolving Line of Credit Agreement for a medium-sized manufacturing company seeking a ₦100 million facility from a Nigerian bank, with machinery and inventory as security, to be executed by March 2025."

Document background
The Revolving Line of Credit Agreement is a crucial financing document used in Nigerian business operations when a borrower requires flexible access to funding for working capital or other ongoing business needs. This agreement type is particularly valuable for businesses with cyclical cash flows or varying capital requirements. The document complies with Nigerian banking regulations, including BOFIA 2020 and Central Bank of Nigeria guidelines, and typically includes comprehensive provisions for facility limits, drawdown procedures, interest calculations, security arrangements, and covenant packages. It's commonly used by both Nigerian financial institutions and corporate borrowers across various sectors, providing a structured framework for ongoing credit relationships while ensuring regulatory compliance and risk management.
Suggested Sections

1. Parties: Identification of the lender and borrower with full legal names and addresses

2. Background: Context of the agreement and brief description of the facility purpose

3. Definitions and Interpretation: Definitions of key terms and interpretation rules for the agreement

4. The Facility: Details of the credit facility including amount, purpose, and revolving nature

5. Conditions Precedent: Conditions that must be satisfied before the facility becomes available

6. Drawdown Procedures: Process and requirements for requesting and receiving advances

7. Interest and Fees: Interest calculation, payment terms, and applicable fees

8. Repayment and Prepayment: Terms for regular repayment and early repayment options

9. Representations and Warranties: Statements of fact and assurances given by the borrower

10. Covenants: Positive and negative obligations of the borrower during the facility term

11. Events of Default: Circumstances constituting default and consequences

12. Security: Description of security arrangements and enforcement rights

13. Changes to Parties: Rules regarding assignment and transfer of rights

14. Notices: Communication procedures between parties

15. Governing Law and Jurisdiction: Nigerian law as governing law and jurisdiction for disputes

16. Boilerplate Provisions: Standard contractual provisions including severability, amendments, and counterparts

Optional Sections

1. Guarantee Provisions: Required when the facility is supported by a third-party guarantee

2. Multiple Borrower Provisions: Required when there are multiple borrowers under the facility

3. Currency Provisions: Required when the facility allows for multiple currencies

4. Increased Costs and Tax Gross-up: Required for sophisticated borrowers or when regulatory changes might affect the facility

5. Agency Provisions: Required when multiple lenders are involved requiring an agent

6. Islamic Banking Provisions: Required when the facility needs to comply with Islamic banking principles

7. Set-off Rights: Optional additional rights for the lender to set off debts against other accounts

Suggested Schedules

1. Schedule 1 - Conditions Precedent Documents: List of required documents and conditions to be satisfied before first drawdown

2. Schedule 2 - Form of Drawdown Notice: Template for borrower to request advances under the facility

3. Schedule 3 - Repayment Schedule: If applicable, schedule of repayment dates and amounts

4. Schedule 4 - Security Documents: List and copies of all security documents

5. Schedule 5 - Fees Schedule: Detailed breakdown of all applicable fees

6. Schedule 6 - Form of Compliance Certificate: Template for periodic compliance certification by borrower

7. Appendix A - Calculation of Interest: Detailed methodology for interest calculation

8. Appendix B - Know Your Customer Requirements: List of required KYC documentation under Nigerian law

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok³ÉÈ˰æ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions



















































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Relevant Industries

Banking and Financial Services

Manufacturing

Real Estate

Retail and Commerce

Oil and Gas

Agriculture

Technology and Telecommunications

Construction

Healthcare

Transportation and Logistics

Mining and Natural Resources

Hospitality and Tourism

Relevant Teams

Legal

Finance

Treasury

Compliance

Risk Management

Corporate Banking

Credit

Operations

Company Secretariat

Internal Audit

Relevant Roles

Chief Financial Officer

Finance Director

Treasury Manager

Financial Controller

Credit Risk Manager

Relationship Manager

Legal Counsel

Compliance Officer

Corporate Banking Officer

Credit Analyst

Managing Director

Company Secretary

Risk Manager

Finance Manager

Banking Operations Manager

Industries








Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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