Document background
The Bank Guarantor Letter is a crucial financial instrument in Nigerian business transactions, commonly used when one party needs assurance of the other party's financial capability or commitment. This document is particularly relevant in scenarios such as bid submissions, advance payment protection, performance guarantees, and commercial contracts. The Bank Guarantor Letter, issued under Nigerian law and regulated by the Central Bank of Nigeria, provides a legally binding commitment from a bank to pay a specified amount under defined conditions. It typically includes details of all parties involved, the guaranteed amount, validity period, trigger events for payment, and claim procedures. This type of guarantee is widely used across various sectors and is essential for both domestic and international business transactions in Nigeria.
