Document background
The Project Financing Agreement is a crucial document used in Nigeria when implementing large-scale projects that require significant capital investment through limited or non-recourse financing structures. This agreement is essential for projects where the financing is primarily secured by the project's assets and cash flows rather than the sponsors' balance sheets. It must comply with Nigerian legislation including the Banks and Other Financial Institutions Act, Investment and Securities Act, and relevant sector-specific regulations. The agreement typically includes detailed provisions for facility terms, security arrangements, conditions precedent, project undertakings, and monitoring requirements. It is particularly important in Nigeria's developing economy context, where infrastructure and industrial projects often require structured financing solutions that align with both local regulatory requirements and international banking standards.
