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Loan Modification Agreement for Nigeria

Loan Modification Agreement Template for Nigeria

A legal document governed by Nigerian law that amends the terms of an existing loan agreement between a lender and borrower. The agreement formally documents modifications to original loan terms such as interest rates, payment schedules, maturity dates, or other key provisions while maintaining the validity of the original agreement. It must comply with Nigerian banking regulations, particularly the Banks and Other Financial Institutions Act (BOFIA) 2020 and Central Bank of Nigeria guidelines, and requires proper execution and stamping to be legally enforceable.

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Loan Modification Agreement

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What is a Loan Modification Agreement?

The Loan Modification Agreement is a crucial document used when parties to an existing loan agreement in Nigeria need to alter the original terms of their lending arrangement. This document becomes necessary when circumstances require changes to payment terms, interest rates, loan duration, or other key provisions, whether due to borrower hardship, market conditions, or mutual agreement between parties. It must comply with Nigerian banking laws, including BOFIA 2020 and Central Bank of Nigeria regulations, and requires proper stamping under the Stamp Duties Act to be admissible in Nigerian courts. The agreement preserves the original loan's validity while documenting all agreed changes, making it essential for risk management and legal compliance in lending relationships.

What sections should be included in a Loan Modification Agreement?

1. Parties: Identification of the Lender and Borrower with their full legal names and addresses

2. Background: Recitals describing the original loan agreement, reason for modification, and summary of changes

3. Definitions: Definitions of terms used in the agreement, including references to original loan agreement definitions

4. Modification of Loan Terms: Specific changes to the original loan terms (e.g., interest rate, payment schedule, maturity date)

5. Confirmation of Other Terms: Confirmation that all other terms of the original loan agreement remain unchanged

6. Representations and Warranties: Updated representations from the borrower regarding financial condition and ability to pay

7. Conditions Precedent: Conditions that must be met before the modification becomes effective

8. Fees and Costs: Any fees or costs associated with the modification

9. Governing Law and Jurisdiction: Confirmation of Nigerian law as governing law and jurisdiction for disputes

10. Execution: Signature blocks for all parties and witnesses

What sections are optional to include in a Loan Modification Agreement?

1. Additional Security: Required if new collateral is being added as part of the modification

2. Guarantor Consent: Required if the original loan had guarantors who need to consent to the modifications

3. Interest Adjustment Mechanism: Required if the modification includes variable interest rates or complex interest calculations

4. Default Cure Provisions: Include if the modification is being made to address an existing default

5. Release of Claims: Include if parties wish to release any claims arising from the original loan agreement

6. Regulatory Compliance: Required if the modification needs specific regulatory approvals or compliance statements

What schedules should be included in a Loan Modification Agreement?

1. Schedule 1 - Original Loan Agreement: Copy or summary of the original loan agreement being modified

2. Schedule 2 - Modified Payment Schedule: Detailed schedule of new payment terms, amounts, and dates

3. Schedule 3 - Modified Interest Calculations: Details of any changes to interest calculations or rates

4. Schedule 4 - Security Details: Details of any existing or new security arrangements

5. Appendix A - Required Consents: Copies of any required regulatory or third-party consents

6. Appendix B - Supporting Documents: Any additional supporting documents such as board resolutions or power of attorney

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

Agreement Contract

Cost

Free to use
Relevant legal definitions



































Clauses






























Relevant Industries

Banking & Financial Services

Real Estate

Manufacturing

Agriculture

Oil & Gas

Telecommunications

Construction

Retail

Healthcare

Education

Relevant Teams

Legal

Finance

Credit Risk

Compliance

Corporate Banking

Treasury

Loan Operations

Commercial Banking

Risk Management

Documentation

Relevant Roles

Chief Financial Officer

Legal Counsel

Credit Risk Manager

Loan Officer

Compliance Officer

Banking Relationship Manager

Corporate Finance Manager

Treasury Manager

Financial Controller

Credit Analyst

Legal Director

Debt Recovery Officer

Contract Manager

Company Secretary

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, 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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