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The Security Agreement Form is a fundamental document in Nigerian secured lending practices, used to create and perfect security interests over assets as collateral for financial obligations. This document is essential when a party (typically a lender) requires security over assets owned by another party (typically a borrower) to secure repayment of a loan or performance of other obligations. The agreement must comply with Nigerian law, particularly the Secured Transactions in Movable Assets Act 2017, Companies and Allied Matters Act 2020, and other relevant legislation. It typically accompanies facility agreements, loan documents, or other primary financing arrangements, providing the security holder with enforceable rights over the secured assets in case of default. The document requires registration with appropriate authorities, including the National Collateral Registry, to ensure its effectiveness against third parties.

1. Parties: Identification of the Secured Party (Security Holder) and the Grantor (Security Provider), including their full legal names, registration numbers if companies, and addresses

2. Background: Context of the security arrangement, reference to any underlying credit facility or main agreement, and purpose of the security

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

4. Grant of Security Interest: The operative clause creating the security interest, specifying the type of security being created

5. Secured Obligations: Clear description of the obligations being secured, including principal, interest, fees, and other amounts

6. Representations and Warranties: Grantor's confirmations regarding ownership, authority to grant security, and status of the collateral

7. Covenants: Ongoing obligations of the Grantor regarding maintenance, insurance, and use of the secured assets

8. Perfection Requirements: Requirements for registration and filing with relevant authorities including the National Collateral Registry

9. Events of Default: Circumstances that trigger enforcement rights

10. Enforcement: Rights and remedies of the Secured Party upon default, including power of sale

11. Power of Attorney: Appointment of the Secured Party as attorney for specific purposes

12. Notices: Process for giving notices under the agreement

13. Governing Law and Jurisdiction: Confirmation of Nigerian law as governing law and jurisdiction of Nigerian courts