Document background
The Repurchase Agreement is a fundamental instrument in Nigerian financial markets, providing a secure mechanism for short-term financing and liquidity management. It is commonly used by banks, financial institutions, and other market participants operating under Nigerian jurisdiction to access short-term funding or manage their securities portfolios. The document incorporates requirements from the Central Bank of Nigeria, the Investment and Securities Act 2007, and other relevant Nigerian financial regulations. It typically includes detailed provisions for the transfer of securities, pricing mechanisms, margin maintenance, and default scenarios, while ensuring compliance with Nigerian banking and securities laws. This type of agreement is particularly important in the Nigerian context where repo transactions play a crucial role in monetary policy implementation and financial market development.
