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Credit Waiver for Nigeria

Credit Waiver Template for Nigeria

A Credit Waiver agreement under Nigerian law is a formal legal document that provides for the waiver or modification of certain rights, obligations, or conditions under an existing credit facility. The document, governed by Nigerian banking and financial services regulations, particularly the Banks and Other Financial Institutions Act (BOFIA) 2020, sets out the terms under which a lender agrees to waive specific requirements, payments, or defaults under the original credit agreement. It includes detailed provisions for the scope of the waiver, conditions precedent, continuing obligations, and compliance with Nigerian regulatory requirements.

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What is a Credit Waiver?

The Credit Waiver agreement is commonly used in the Nigerian financial sector when a lender agrees to forgo or modify certain rights or requirements under an existing credit facility. This document becomes necessary when borrowers face temporary financial difficulties or when commercial circumstances warrant a modification of original credit terms. The waiver may cover various aspects such as payment defaults, financial covenants, or specific obligations under the original facility. The document must comply with Nigerian banking regulations, particularly BOFIA 2020 and Central Bank of Nigeria guidelines, and typically requires internal approvals from both the lender's and borrower's organizations. The Credit Waiver should clearly define the scope of what is being waived, any conditions attached to the waiver, and its duration, while preserving other terms of the original credit facility.

What sections should be included in a Credit Waiver?

1. Parties: Identification of the creditor and debtor, including full legal names, registration details, and addresses

2. Background: Details of the original credit facility, current outstanding amounts, and circumstances leading to the waiver

3. Definitions: Definitions of key terms used in the agreement, including 'Credit Facility', 'Waiver Period', 'Outstanding Amount'

4. Waiver Terms: Specific details of what is being waived (interest, penalties, principal) and the extent of the waiver

5. Duration and Effect: Period of the waiver and its effect on the overall credit facility

6. Conditions Precedent: Conditions that must be met before the waiver becomes effective

7. Representations and Warranties: Statements of fact and assurances from both parties

8. Continuing Obligations: Obligations that remain in force despite the waiver

9. Compliance with Laws: Confirmation of compliance with Nigerian banking and financial regulations

10. Governing Law and Jurisdiction: Specification of Nigerian law as governing law and jurisdiction for disputes

11. Execution: Signature blocks and execution requirements

What sections are optional to include in a Credit Waiver?

1. Security Preservation: Required when existing security arrangements need to be preserved despite the waiver

2. Third Party Rights: Needed when guarantors or other third parties are involved in the credit facility

3. Confidentiality: Optional section for sensitive commercial arrangements

4. Regulatory Notifications: Required when the waiver needs to be reported to regulatory authorities

5. Tax Implications: Needed when the waiver has significant tax consequences

6. Future Credit Relations: Optional section addressing future lending relationship between parties

7. Dispute Resolution: Alternative dispute resolution mechanisms if preferred over court jurisdiction

What schedules should be included in a Credit Waiver?

1. Schedule 1 - Original Credit Facility Details: Copy or summary of the original credit agreement and amendments

2. Schedule 2 - Waiver Calculations: Detailed calculations of amounts being waived and remaining obligations

3. Schedule 3 - Payment Schedule: If applicable, revised payment schedule following the waiver

4. Schedule 4 - Security Documents: List of security documents that remain in force

5. Appendix A - Required Notices: Forms of any notices required to be given under the waiver

6. Appendix B - Compliance Documents: Copies of regulatory compliance confirmations or required permits

Authors

Alex Denne

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

Jurisdiction

Nigeria

Publisher

Ƶ

Document Type

Waiver

Cost

Free to use
Relevant legal definitions






































Clauses






























Relevant Industries

Banking

Financial Services

Manufacturing

Real Estate

Oil and Gas

Telecommunications

Construction

Agriculture

Retail

Mining

Infrastructure Development

Transportation

Relevant Teams

Legal

Finance

Credit Risk

Compliance

Treasury

Banking Operations

Collections

Corporate Banking

Risk Management

Company Secretariat

Relevant Roles

Chief Financial Officer

Credit Risk Manager

Legal Counsel

Relationship Manager

Credit analyst

Compliance Officer

Treasury Manager

Financial Controller

Risk Officer

Company Secretary

Finance Director

Banking Operations Manager

Credit Collections Manager

Restructuring Officer

Portfolio 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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