Corporate lending in Nigeria ranges from bilateral working capital facilities to syndicated loans involving local and international banks and development finance institutions. Each transaction requires a facility agreement that reflects the commercial deal, security that can be enforced, and compliance with Nigerian corporate, regulatory, tax and foreign exchange rules.
Transactions we advise on
- Term loans and revolving credit facilities
- Syndicated and club loans
- Acquisition and leveraged finance
- Foreign currency loans from offshore lenders
- Development finance institution facilities
- Shareholder and intercompany loans
- Private credit and mezzanine financing
- Refinancing and amendments
For lenders
- Facility agreements, often based on Loan Market Association standards adapted for Nigeria
- Security documents and guarantees
- Conditions precedent, legal opinions and capacity checks
- Borrower due diligence
- Regulatory issues for lenders, including licensing of non-bank lenders and moneylending laws in some states
For borrowers
- Reviewing and negotiating terms, covenants and events of default
- Managing conditions precedent and corporate approvals
- Advising on the cost of borrowing, including withholding tax and stamp duties
- Waivers, amendments and restructurings
Foreign currency lending
Loans from offshore lenders should be imported through official channels to obtain a Certificate of Capital Importation, which supports the repayment of principal and interest through the official foreign exchange market. Lenders and borrowers should also consider withholding tax on interest, available exemptions, and the allocation of currency risk.
Legal opinions
We issue Nigerian law legal opinions on capacity, authority and enforceability for local and international lenders, which are often a condition precedent to drawdown.
