All Countries
Banking
Payment Terms Agreement

Payment Terms Agreement Template for Nigeria

Create a bespoke document in minutes,  or upload and review your own.

4.6 / 5
4.8 / 5

Let's create your Payment Terms Agreement

Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.

Get your first 2 documents free

Your data doesn't train Genie's AI

You keep IP ownership of your information

Key Requirements PROMPT example:

Payment Terms Agreement

"I need a Payment Terms Agreement for my manufacturing company that will supply auto parts to a major distributor, with monthly payments of 5 million Naira starting March 2025, including early payment discounts and electronic payment provisions compliant with Nigerian banking regulations."

Celebrated by
Collaborations with
Investors
Document background
The Payment Terms Agreement serves as a crucial legal instrument in Nigerian commercial transactions, designed to establish clear and enforceable payment obligations between contracting parties. This document becomes essential when businesses need to formalize their payment arrangements, whether for ongoing services, large transactions, or recurring business relationships. It encompasses key elements required by Nigerian contract law and Central Bank of Nigeria regulations, including payment schedules, methods of payment, currency considerations, and compliance requirements. The agreement is particularly relevant in today's business environment where electronic payments and complex financial arrangements require detailed documentation and regulatory compliance. It provides protection for both parties by clearly defining payment obligations, consequences of default, and dispute resolution mechanisms within the Nigerian legal framework.
Suggested Sections

1. Parties: Identification of all parties to the agreement, including full legal names, registration numbers, and addresses

2. Background: Context of the agreement, including the business relationship between parties and purpose of the payment arrangement

3. Definitions: Definitions of key terms used throughout the agreement, including payment-related terminology

4. Payment Terms: Core payment obligations, including amounts, currencies, and payment frequencies

5. Payment Methods: Approved methods of payment and processing details, including electronic transfer requirements as per CBN guidelines

6. Payment Schedule: Timing of payments, including due dates and grace periods

7. Late Payment Consequences: Interest rates, penalties, and other consequences of late or missed payments

8. Dispute Resolution: Procedures for handling payment disputes and discrepancies

9. Term and Termination: Duration of the agreement and conditions for termination

10. Governing Law: Specification of Nigerian law as governing law and jurisdiction

Optional Sections

1. Early Payment Discounts: Terms for early payment incentives and discount calculations

2. Third-Party Payments: Provisions for payments made through or to third parties

3. Security Arrangements: Requirements for payment security, including bank guarantees or letters of credit

4. Force Majeure: Provisions for payment obligations during extraordinary circumstances

5. Tax Provisions: Specific arrangements regarding tax payments and withholding requirements

6. Currency Exchange: Provisions for handling multiple currencies and exchange rate calculations

7. Electronic Payment Systems: Specific requirements for electronic payment platforms and security measures

8. Audit Rights: Rights to audit payment records and documentation requirements

Suggested Schedules

1. Schedule 1 - Payment Schedule: Detailed payment timeline with specific dates and amounts

2. Schedule 2 - Interest Calculation Method: Formula and examples for calculating late payment interest

3. Schedule 3 - Approved Payment Methods: List of approved payment methods and processing requirements

4. Schedule 4 - Bank Account Details: Banking information for all parties

5. Appendix A - Payment Notice Forms: Standard forms for payment notifications and disputes

6. Appendix B - CBN Compliance Checklist: Checklist ensuring compliance with Central Bank of Nigeria requirements

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Linkedin in social icon imageX social icon image
alex.den.21@genieai.co
Relevant legal definitions
Agreement
Business Day
CBN
Commencement Date
Confidential Information
Default Interest Rate
Due Date
Early Payment Discount
Electronic Payment System
Force Majeure Event
Grace Period
Interest Period
Invoice
Late Payment
Material Adverse Effect
Naira
Outstanding Amount
Payment Currency
Payment Date
Payment Method
Payment Notice
Payment Schedule
Payment Terms
Payee
Payer
Penalty Fee
Reference Rate
Relevant Banking Authority
Settlement Date
Tax
Term
Transaction
Valid Invoice
Working Capital
Writing
Relevant Industries

Manufacturing

Retail

Financial Services

Technology

Oil and Gas

Construction

Healthcare

Telecommunications

Agriculture

Transportation and Logistics

Professional Services

Real Estate

Mining

Education

Hospitality

Relevant Teams

Finance

Legal

Accounts Receivable

Accounts Payable

Treasury

Procurement

Commercial

Risk Management

Compliance

Credit Control

Relevant Roles

Chief Financial Officer

Finance Manager

Accounts Receivable Manager

Accounts Payable Manager

Treasury Manager

Financial Controller

Legal Counsel

Contracts Manager

Commercial Director

Credit Control Manager

Procurement Manager

Business Development Manager

Company Secretary

Risk Manager

Compliance Officer

Industries
Nigerian Contract Law: Derived from Common Law, it governs the formation and enforcement of contracts, including essential elements like offer, acceptance, consideration, and capacity to contract
Central Bank of Nigeria Act 2007: Regulates payment systems, financial transactions, and monetary policies that affect payment terms and methods in Nigeria
Bills of Exchange Act: Governs negotiable instruments and various payment methods including checks, promissory notes, and bills of exchange
Money Laundering (Prohibition) Act 2011: Sets restrictions and requirements for large financial transactions and payment reporting obligations
Cybercrime (Prohibition, Prevention, etc.) Act 2015: Relevant for electronic payment provisions and security measures in payment agreements
Companies and Allied Matters Act (CAMA) 2020: Provides framework for corporate transactions and payment obligations between business entities
Finance Act: Contains provisions regarding taxation aspects of payments and financial transactions
CBN Guidelines on Electronic Payment of Salaries, Pensions, Suppliers and Taxes in Nigeria: Provides specific requirements for electronic payment systems and processes
Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

Find the exact document you need

Past Due Rent Payment Agreement

A Nigerian law-compliant agreement establishing a structured payment plan for outstanding rent between landlord and tenant, including debt acknowledgment and repayment terms.

find out more

Partial Payment Agreement

A Nigerian law-governed agreement that structures the settlement of outstanding debt through agreed installment payments between creditor and debtor.

find out more

Payment Agreement Letter

A legally binding document under Nigerian law that establishes payment terms and conditions between parties, outlining payment obligations and schedules.

find out more

Rent Payment Plan Letter

A formal Nigerian legal document establishing a structured rent payment arrangement between tenant and landlord, outlining modified payment terms while maintaining original lease validity.

find out more

Debt Payment Plan Agreement

A Nigerian law-governed agreement establishing structured terms for debt repayment, including payment schedule, interest rates, and default provisions.

find out more

Installment Agreement Letter

A Nigerian law-governed document establishing terms for installment payments, including payment schedule, amounts, and default provisions.

find out more

Individual Payment Agreement

A Nigerian law-governed agreement that establishes payment terms and obligations between parties, including payment amounts, schedules, and enforcement mechanisms.

find out more

Online Payment Agreement

Nigerian law-governed agreement for online payment processing services, establishing terms between payment providers and merchants while ensuring regulatory compliance.

find out more

Agreement To Pay Debt In Installments

A Nigerian law-governed agreement that structures debt repayment into fixed installments, detailing payment terms and obligations between creditor and debtor.

find out more

Payment Installment Form

A Nigerian law-compliant document establishing terms and schedule for installment payments between parties, including payment terms, conditions, and enforcement mechanisms.

find out more

Down Payment Agreement Form

A Nigerian-compliant legal document that formalizes the terms and conditions of a down payment transaction, including payment terms, refund conditions, and parties' obligations.

find out more

Partial Payment Agreement Form

A Nigerian law-governed agreement establishing terms for structured partial payments to settle an outstanding debt, including payment schedule and enforcement provisions.

find out more

Late Payment Agreement

A Nigerian law-governed agreement that formalizes arrangements for settling overdue payments, including payment schedules, interest rates, and enforcement terms.

find out more

Debt Payment Agreement Form

A Nigerian law-governed agreement that formalizes debt repayment terms, schedules, and obligations between creditor and debtor.

find out more

Full And Final Payment Agreement

A Nigerian law-governed agreement that finalizes debt settlement between parties, establishing complete payment terms and mutual releases.

find out more

Partial Payment Installment Agreement

A Nigerian law-governed agreement establishing terms for debt repayment through scheduled installments, including payment terms, interest, and default provisions.

find out more

Payment Plan Settlement Agreement

A Nigerian law-governed agreement that establishes structured payment terms between creditor and debtor for settling outstanding debt obligations.

find out more

Patient Payment Agreement Form

A Nigerian-compliant agreement establishing payment terms between healthcare providers and patients for medical services.

find out more

Installment Agreement Form

A Nigerian law-governed agreement for purchase of goods or services through structured periodic payments, establishing payment terms and enforcement mechanisms.

find out more

Full Payment Agreement

A Nigerian law-governed agreement establishing terms and conditions for complete payment of a specified amount between parties, including payment obligations, methods, and enforcement provisions.

find out more

Payment Terms Agreement

A Nigerian law-governed agreement establishing payment terms, schedules, and obligations between parties, compliant with CBN regulations.

find out more

Download our whitepaper on the future of AI in Legal

By providing your email address you are consenting to our Privacy Notice.
Thank you for downloading our whitepaper. This should arrive in your inbox shortly. In the meantime, why not jump straight to a section that interests you here: https://www.genieai.co/our-research
Oops! Something went wrong while submitting the form.

Genie’s Security Promise

Genie is the safest place to draft. Here’s how we prioritise your privacy and security.

Your documents are private:

We do not train on your data; Genie’s AI improves independently

All data stored on Genie is private to your organisation

Your documents are protected:

Your documents are protected by ultra-secure 256-bit encryption

Our bank-grade security infrastructure undergoes regular external audits

We are ISO27001 certified, so your data is secure

Organizational security

You retain IP ownership of your documents

You have full control over your data and who gets to see it

Innovation in privacy:

Genie partnered with the Computational Privacy Department at Imperial College London

Together, we ran a £1 million research project on privacy and anonymity in legal contracts

Want to know more?

Visit our Trust Centre for more details and real-time security updates.

Read our Privacy Policy.