Document background
The Acquisition Letter of Intent (LOI) is a crucial preliminary document in Nigerian corporate transactions, typically used in the early stages of a potential acquisition or business combination. It serves as a formal expression of interest and outlines the basic terms and understanding between parties before proceeding with detailed due diligence and definitive agreements. Under Nigerian law, particularly considering the Companies and Allied Matters Act (CAMA) 2020 and relevant securities regulations, the LOI helps establish the framework for negotiations while protecting both parties' interests through confidentiality and exclusivity provisions. While mostly non-binding, it demonstrates commitment to the transaction and can help secure financing or regulatory approvals. The document is particularly important in Nigeria's business environment where clear documentation of intentions and preliminary agreements is essential for smooth corporate transactions.
