Commercial Loan Referral Fee Agreement Template for Nigeria

The Commercial Loan Referral Fee Agreement is essential for financial institutions operating in Nigeria that wish to expand their commercial lending business through third-party referrers. This document is typically used when banks or financial institutions want to formalize relationships with business introducers who can connect them with potential commercial borrowers. The agreement must comply with Nigerian banking regulations, particularly BOFIA 2020 and CBN directives, while providing clear frameworks for referral processes, fee calculations, and payment terms. It's particularly important in the Nigerian market where relationship-based business introductions are common but need to be properly regulated and documented. The agreement includes specific provisions for regulatory compliance, anti-money laundering requirements, and risk management measures appropriate for the Nigerian banking sector.

1. Parties: Identification of the referrer and the lender, including their registered addresses and company details

2. Background: Context of the agreement, including the lender's business and the referrer's role

3. Definitions: Key terms used throughout the agreement, including 'Referral', 'Successful Loan', 'Referral Fee', etc.

4. Appointment and Scope: Terms of appointment of the referrer and scope of referral services

5. Referral Process: Detailed process for making referrals, including required information and documentation

6. Referral Fee Structure: Calculation method for referral fees, payment terms, and conditions for fee eligibility

7. Obligations of the Referrer: Referrer's duties, including compliance with laws and maintaining necessary licenses

8. Obligations of the Lender: Lender's responsibilities regarding referrals and fee payments

9. Compliance Requirements: Regulatory compliance obligations under Nigerian law, including BOFIA and anti-money laundering requirements

10. Representations and Warranties: Standard warranties from both parties regarding capacity, authority, and compliance

11. Confidentiality: Obligations regarding confidential information and customer data

12. Term and Termination: Duration of agreement and grounds for termination

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