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Litigation Financing Agreement for Nigeria

Litigation Financing Agreement Template for Nigeria

This document is a comprehensive agreement governed by Nigerian law that establishes the terms and conditions under which a third-party funder provides financial support for legal proceedings. It details the funding mechanism, return structure, control rights, and obligations of all parties involved in the litigation funding arrangement. The agreement incorporates specific considerations of Nigerian civil procedure rules, professional conduct requirements, and relevant financial regulations, while addressing risk allocation, confidentiality, and dispute resolution mechanisms specific to the Nigerian jurisdiction.

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Litigation Financing Agreement

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What is a Litigation Financing Agreement?

The Litigation Financing Agreement is a sophisticated legal instrument used when a party seeks third-party funding for litigation or arbitration proceedings in Nigeria. This document is essential when a claimant requires external financing to pursue legal claims but lacks the resources or prefers to share the litigation risk. The agreement details the funding commitment, return structure, control mechanisms, and reporting requirements, while ensuring compliance with Nigerian legal and regulatory requirements. It becomes particularly relevant in complex commercial disputes, class actions, or high-value claims where substantial litigation costs are anticipated. The document must carefully balance the funder's need for oversight and returns with the claimant's autonomy and professional obligations of their legal representatives under Nigerian law.

What sections should be included in a Litigation Financing Agreement?

1. Parties: Identification of the Funder, the Claimant/Plaintiff, and their respective details

2. Background: Context of the underlying litigation and the purpose of the funding arrangement

3. Definitions and Interpretation: Definitions of key terms and interpretation rules for the agreement

4. Funding Commitment: Details of the funding amount, drawdown conditions, and funding schedule

5. Returns and Waterfall: Structure of returns to the funder, priority of payments, and calculation methods

6. Conditions Precedent: Conditions that must be satisfied before the funding obligation becomes effective

7. Representations and Warranties: Key statements of fact and assurances from both parties

8. Undertakings: Ongoing obligations of the funded party regarding the conduct of litigation

9. Control and Information Rights: Funder's rights regarding litigation strategy and information access

10. Confidentiality: Obligations regarding confidential information and permitted disclosures

11. Term and Termination: Duration of the agreement and circumstances allowing early termination

12. Dispute Resolution: Mechanisms for resolving disputes under the agreement

13. General Provisions: Standard boilerplate clauses including notices, amendments, and governing law

What sections are optional to include in a Litigation Financing Agreement?

1. Security Arrangements: Include when the funder requires security over the claim or other assets

2. Insurance: Include when specific insurance requirements are needed for the litigation

3. After-the-Event Insurance: Include when ATE insurance is part of the funding arrangement

4. Priority and Subordination: Include when there are multiple funders or financing arrangements

5. Legal Opinion Requirements: Include when independent legal opinions are required as part of the arrangement

6. Anti-Money Laundering Provisions: Include detailed AML provisions when dealing with high-risk jurisdictions or complex funding structures

What schedules should be included in a Litigation Financing Agreement?

1. Schedule 1 - Funding Schedule: Detailed breakdown of the funding commitment and drawdown schedule

2. Schedule 2 - Approved Budget: Detailed litigation budget and cost projections

3. Schedule 3 - Return Calculations: Detailed methodology for calculating the funder's return

4. Schedule 4 - Form of Drawdown Notice: Template for requesting funding drawdowns

5. Schedule 5 - Litigation Plan: Overview of litigation strategy and key milestones

6. Schedule 6 - Reporting Requirements: Templates and timing for regular reporting to the funder

7. Appendix A - Power of Attorney: If required, form of power of attorney for funder's rights

8. Appendix B - Form of Security Documents: Templates for any required security documentation

Authors

Alex Denne

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

Jurisdiction

Nigeria

Document Type

Loan Agreement

Sector

Banking

Cost

Free to use
Relevant legal definitions













































Clauses







































Relevant Industries

Legal Services

Financial Services

Insurance

Banking

Mining and Resources

Construction

Manufacturing

Technology

Real Estate

Healthcare

Energy

Infrastructure

Telecommunications

Maritime

Relevant Teams

Legal

Finance

Compliance

Risk Management

Investment

Operations

Corporate Governance

Dispute Resolution

Treasury

Due Diligence

Relevant Roles

Legal Counsel

Chief Legal Officer

Litigation Manager

Chief Financial Officer

Risk Manager

Compliance Officer

Investment Manager

Portfolio Manager

Claims Manager

Legal Operations Director

General Counsel

Finance Director

Corporate Secretary

Investment Analyst

Due Diligence Officer

Industries








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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, 聽Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination, 聽Severance Pay, Governing Law, Entire Agreemen

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