Direct Debit Installment Agreement Template for Nigeria

The Direct Debit Installment Agreement is essential for businesses and financial institutions operating in Nigeria that need to establish recurring payment arrangements with their customers or debtors. This document is commonly used when regular payments need to be collected automatically, such as for loan repayments, subscription services, or installment purchases. The agreement must comply with Nigerian banking regulations, particularly the Central Bank of Nigeria's guidelines on electronic banking and direct debit operations. It provides security for creditors while ensuring consumer protection for debtors, incorporating all necessary elements required by Nigerian law for automated payment arrangements.

1. Parties: Identification of the creditor and debtor, including full legal names, addresses, and registration details if applicable

2. Background: Context of the agreement, including the underlying debt or payment obligation

3. Definitions: Definitions of key terms used throughout the agreement

4. Direct Debit Authorization: Explicit authorization from the debtor for automatic withdrawals from their account

5. Payment Terms: Details of the total amount owed, installment amounts, and payment schedule

6. Bank Account Details: Specification of the relevant bank accounts for both parties

7. Duration and Frequency: Term of the agreement and frequency of direct debit collections

8. Failed Payments: Procedures and consequences for failed or rejected direct debit attempts

9. Amendments and Cancellation: Process for modifying or canceling the direct debit arrangement

10. Debtor's Rights and Obligations: Specific rights and responsibilities of the debtor under the agreement

11. Creditor's Rights and Obligations: Specific rights and responsibilities of the creditor under the agreement

12. Dispute Resolution: Procedures for handling disputes related to payments or agreement terms

13. Governing Law: Specification of Nigerian law as the governing law and relevant jurisdiction