Document background
The Inter Company Loan Agreement is essential for documenting and formalizing loan arrangements between affiliated companies operating in Nigeria. This document is typically used when one company within a corporate group provides financing to another related company, whether for operational needs, expansion, or other corporate purposes. The agreement must comply with Nigerian regulatory requirements, including the Companies and Allied Matters Act 2020, transfer pricing regulations, and relevant tax laws. It should detail the loan terms, interest calculations, repayment schedules, and any security arrangements while ensuring alignment with Nigerian corporate governance standards and Central Bank regulations. The document becomes particularly critical for audit trails, tax compliance, and demonstrating arm's length transactions in related party dealings.
