Document background
The Forward Funding Agreement is a crucial document in Nigerian property development, used when a funder agrees to finance a development project from its inception. This agreement is particularly relevant in situations where traditional development financing may not be suitable or where investors seek early involvement in development projects. The document encompasses all aspects of the development funding relationship, including detailed provisions for funding releases, development obligations, security arrangements, and completion requirements. It must comply with Nigerian investment laws, land use regulations, and banking requirements while providing adequate protection for all parties. The agreement is especially important in the Nigerian context where property development often requires significant upfront funding and careful structuring of security arrangements. It typically includes provisions for local content requirements and addresses specific challenges in the Nigerian development landscape.
