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Short Term Investment Agreement Template for Nigeria

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Key Requirements PROMPT example:

Short Term Investment Agreement

"I need a Short Term Investment Agreement for a US-based investor planning to invest $500,000 in our Nigerian tech startup for 18 months starting March 2025, with quarterly returns and compliance with foreign exchange regulations."

Document background
The Short Term Investment Agreement is essential for businesses and investors engaging in temporary investment arrangements within Nigeria's dynamic market environment. This document is particularly relevant when parties seek to establish a structured investment relationship for a defined short-term period, typically ranging from 3 months to 2 years. It addresses key requirements under Nigerian law, including compliance with the Investment and Securities Act 2007 and foreign exchange regulations. The agreement is commonly used for project-specific investments, working capital financing, or short-term business expansion initiatives. It includes provisions for investment protection, returns calculation, regulatory compliance, and risk mitigation, making it suitable for both domestic and foreign investors operating in Nigeria's business landscape.
Suggested Sections

1. Parties: Identification and details of the investor and investment recipient

2. Background: Context of the investment and brief description of the parties' intentions

3. Definitions: Definitions of key terms used throughout the agreement

4. Investment Amount and Terms: Specification of the investment amount, payment terms, and investment period

5. Investment Purpose: Detailed description of how the investment will be used

6. Returns and Distribution: Terms regarding investment returns, calculation method, and distribution schedule

7. Representations and Warranties: Standard declarations by both parties regarding their capacity and authority

8. Obligations of the Parties: Specific duties and responsibilities of both investor and recipient

9. Term and Termination: Duration of the agreement and circumstances for early termination

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

11. Confidentiality: Provisions for handling confidential information

12. Notices: Process and requirements for formal communications between parties

13. Execution: Signature blocks and execution requirements

Optional Sections

1. Foreign Exchange Provisions: Required when involving foreign investors, addressing currency conversion and repatriation

2. Tax Considerations: Specific tax arrangements and responsibilities when tax implications are complex

3. Security Arrangements: When collateral or security is required for the investment

4. Regulatory Compliance: Special regulatory requirements for specific industry sectors

5. Force Majeure: Provisions for unforeseen circumstances, particularly relevant in volatile markets

6. Assignment Rights: When transfer of investment rights needs to be addressed

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

Suggested Schedules

1. Investment Schedule: Detailed breakdown of investment amount, timing, and tranches if applicable

2. Returns Calculation Methodology: Detailed formula and examples for calculating investment returns

3. KYC Documentation: Required identity and verification documents for both parties

4. Business Plan: Summary of how the investment will be utilized (if applicable)

5. Regulatory Approvals: Copies of relevant regulatory permissions and licenses

6. Payment Instructions: Bank account details and payment procedures

Authors

Alex Denne

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

Relevant legal definitions

























Clauses

























Relevant Industries

Financial Services

Real Estate

Agriculture

Technology

Manufacturing

Oil and Gas

Renewable Energy

Telecommunications

Mining

Retail and Consumer Goods

Infrastructure Development

Healthcare

Education

Relevant Teams

Legal

Finance

Compliance

Treasury

Risk Management

Corporate Development

Investment Relations

Business Development

Corporate Secretariat

Executive Leadership

Relevant Roles

Chief Financial Officer

Investment Manager

Legal Counsel

Compliance Officer

Finance Director

Investment Analyst

Risk Manager

Treasury Manager

Corporate Lawyer

Business Development Manager

Managing Director

Investment Relations Officer

Company Secretary

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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