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An Instruction Letter puts specific directions or requests in writing, commonly used in Nigerian banking, real estate, and business transactions. It tells someone exactly what actions to take, like transferring funds between accounts, releasing documents, or processing a transaction on the sender's behalf.

Banks and financial institutions in Nigeria require these letters to protect themselves and their clients, following guidelines from the Central Bank of Nigeria. A properly written Instruction Letter needs to include clear details about the task, relevant account numbers or reference details, and authorized signatures. Companies often use them to coordinate with multiple departments or external partners while maintaining a clear paper trail.

Use an Instruction Letter when you need to give clear, documented directions for financial or business tasks in Nigeria. It's essential for bank transactions like fund transfers, especially when dealing with large amounts or multiple parties. Many Nigerian banks require these letters before processing significant account changes or releasing important documents.

The letter proves particularly valuable during real estate deals, import-export transactions, or when coordinating with government agencies. For example, when instructing your bank to release title documents to a buyer's solicitor, or directing a financial institution to convert foreign currency under CBN guidelines. Using it creates a clear audit trail and helps prevent misunderstandings or disputes later.

• Bank Transaction Instructions: Used for directing financial institutions to transfer funds, update account details, or process forex transactions under CBN guidelines
• Property Release Instructions: Common in real estate deals to authorize the release of title documents or coordinate with land registry offices
• Corporate Action Instructions: Guides internal departments or external partners on specific business processes, often used in procurement or logistics
• Investment Instructions: Details steps for executing investment decisions, managing securities, or handling trust assets with financial institutions
• Customs and Trade Instructions: Directs clearing agents or shipping companies on import-export procedures and documentation requirements

• Bank Managers and Financial Officers: Review and process Instruction Letters for account transactions, ensuring compliance with banking regulations
• Corporate Executives: Issue letters to authorize significant business transactions or direct company resources
• Legal Practitioners: Draft and verify letters for clients, ensuring proper legal language and enforceability
• Company Directors: Sign and authorize letters for major corporate decisions or financial commitments
• Government Officials: Process letters related to regulatory compliance, permits, or official documentation
• Real Estate Agents: Coordinate property transactions using instruction letters for document releases and payments

• Essential Details: Gather all relevant account numbers, transaction amounts, and recipient information before starting
• Authority Check: Confirm you have proper authorization to issue the instruction and collect necessary supporting documents
• Clear Purpose: Write a specific, unambiguous statement of what needs to be done, including timeframes and conditions
• Format Requirements: Use company letterhead and follow any bank-specific formatting guidelines
• Verification Items: Include contact details, reference numbers, and specimen signatures as required by Nigerian banking regulations
• Final Review: Double-check all numbers, names, and instructions for accuracy before obtaining required signatures

• Header Information: Company letterhead, date, reference number, and recipient's complete details
• Subject Line: Clear title indicating the purpose and nature of instructions
• Authorization Statement: Declaration of authority to issue the instruction and any relevant corporate resolutions
• Instruction Details: Specific, numbered steps or actions required, including amounts, account details, and timeframes
• Supporting Documentation: List of attached documents or references to relevant agreements
• Execution Block: Authorized signatures, names, titles, and company seal where required
• Contact Information: Details for follow-up queries or confirmation

An Instruction Letter differs significantly from an Authorization Letter, though they're often confused in Nigerian business transactions. While both documents facilitate business operations, their purposes and legal implications vary considerably.

• Purpose and Scope: Instruction Letters provide specific, step-by-step directions for completing a task or transaction, while Authorization Letters grant permission or authority to act on someone's behalf
• Legal Effect: Instruction Letters create an obligation to follow detailed directions exactly as stated, whereas Authorization Letters establish a broader agency relationship with more discretionary power
• Duration: Instruction Letters typically cover one-time or specific transactions, while Authorization Letters often remain valid for an extended period or multiple transactions
• Content Requirements: Instruction Letters need precise procedural details and steps, but Authorization Letters focus more on defining the scope of authority and identifying authorized parties