Document background
The Personal Guarantee Letter is a crucial document in Nigerian business and financial transactions where additional security is required for debt or other obligations. It serves as a risk mitigation tool for creditors, particularly in situations where they seek personal assurance beyond corporate guarantees. Under Nigerian law, these guarantees must be in writing and clearly specify the guaranteed obligations, making them especially common in loan agreements, lease arrangements, and major business transactions. The document typically outlines the guaranteed amount, duration, conditions for enforcement, and the guarantor's obligations. Its use is particularly prevalent when dealing with new businesses, companies with limited trading history, or where additional security is required for significant financial commitments.
