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A Bank Letter of Comfort is commonly used in Nigerian business transactions where a party requires some form of assurance about another party's financial standing, but a full bank guarantee is either not necessary or not appropriate. The document is governed by Nigerian law and regulated under the Banks and Other Financial Institutions Act (BOFIA) 2020 and Central Bank of Nigeria guidelines. It serves multiple purposes in various business contexts, from supporting vendor relationships to facilitating international trade transactions. While providing meaningful assurance about a customer's banking relationship and financial standing, it carefully maintains a non-binding nature, distinguishing it from more formal banking instruments like guarantees or standby letters of credit. The letter includes specific information about the customer's relationship with the bank, while incorporating necessary disclaimers to manage the bank's risk exposure.

1. Bank Details and Letterhead: Official bank letterhead including full name, registration details, and address of the issuing bank

2. Date and Reference: Current date and unique reference number for the letter of comfort

3. Recipient Details: Full name and address of the recipient (beneficiary) of the letter

4. Subject Line: Clear indication that this is a Letter of Comfort and reference to the specific customer/transaction

5. Customer Introduction: Introduction of the customer (third party) for whom the letter is being issued, including their relationship with the bank

6. Financial Standing: Statement regarding the customer's financial standing and banking relationship

7. Nature of Comfort: Clear explanation of the extent and limitations of the comfort being provided

8. Disclaimer: Standard disclaimer clarifying that this is not a guarantee or legally binding commitment

9. Authorization: Statement of the bank's authority to issue the letter

10. Signatory Block: Signature section for authorized bank officials with their names and designations