DFI Lending in Nigeria: What Every Borrower Must Know Before Signing

DFI Lending in Nigeria: What Every Borrower Must Know Before Signing

Business Advisory, Corporate & Commercial, Financial Services, Financial Technology (FinTech), Project Finance, Startups and MSME Law

Lending from development finance institutions such as the International Finance Corporation, African Development Bank, Proparco, and German Development Finance Institution, DEG, and other multilateral and bilateral development finance institutions is becoming more accessible to Nigerian businesses across sectors. There may be longer tenors, attractive pricing, or even a strategic partnership that adds credibility and capital. However, borrowers should be aware that DFI loans are not commercial bank loans. They come with conditions, obligations and consequences that many Nigerian borrowers are not prepared for when they enter the facility agreement. In this article, we identify the five most critical areas where DFI lending most often cause problems for Nigerian borrowers and what every borrower should know before signing.

Embedded Finance in Nigeria – What Every Bank-Fintech Partnership Needs

Corporate & Commercial, Financial Services, Financial Technology (FinTech), Project Finance

By integrating financial services products into non-financial platforms and business models, embedded finance is changing the Nigerian financial services landscape faster than the regulatory and legal frameworks that govern it. Several banks are distributing financial products through digital channels using FinTech. The fintechs are leveraging bank APIs to deliver services that were once available only to licensed financial houses. Retailers, logistics companies and software companies are integrating payments, lending and insurance into their customer experiences.
This has huge commercial potential. Legal risks are also real and not adequately managed in most bank-finance partnership arrangements we review. Five key legal requirements that every embedded finance partnership in Nigeria must meet before the arrangement goes live are laid out in this article.

Nigerian Lending - Perfection. Banks and Borrowers Keep Making These 5 Mistakes

Nigerian Lending – Perfection. Banks and Borrowers Keep Making These 5 Mistakes

Banking and Finance Law, Business Advisory, Business, Careers, Business, Small Business, Corporate & Commercial, Corporate Restructuring and Insolvency, Financial Services, Financial Technology (FinTech), Project Finance, Public-Private Partnerships (PPP), Startups and MSME Law

There is no loan facility stronger than the security that underlies it. Any bank that doesn’t properly secure its assets is not a secured creditor. And a borrower that does not understand its perfection obligations might find that its representations to its lender were false. These are five security perfection mistakes we see often and every party involved in a Nigerian credit transaction needs to know about them.

Contracting in the Digital Finance Ecosystem: How to Manage Legal Risks in Nigerian FinTech Partnerships

Business Advisory, Business, Entrepreneurs, Corporate & Commercial, Financial Services, Financial Technology (FinTech), Project Finance

The emergence and continued growth of Financial Technology (FinTech) companies in the Nigerian financial services sector has redefined how financial services are delivered, with technology driven solutions that enable faster payments, lending and wealth management. These innovations often lead to complex collaborations between FinTech startups, traditional banks and third-party service providers. These partnerships may inevitably expose the parties to legal and regulatory risks if not properly managed.

Legal Recap

Goldsmiths Solicitors – Legal Recap for the Year 2024

Banking and Finance Law, Business Advisory, Corporate & Commercial, Financial Services, Financial Technology (FinTech), Insights, Press Release, Project Finance, Public Sector, Public-Private Partnerships (PPP), Startups and MSME Law

This Legal Recap for 2024 offers a comprehensive overview of the most significant legal, regulatory, and judicial developments in Nigeria. In 2024, Nigeria’s legal landscape experienced major transformations, with notable…

What the Electricity Act 2023 Means for the Electricity Market and Stakeholders in Nigeria.

Business Advisory, Construction, Corporate & Commercial, Energy & Natural Resources, Innovation and Technology, Insights, Project Finance, Public Sector, Public-Private Partnerships (PPP)

On 9th June 2023, President Bola Ahmed Tinubu signed the Electricity Act 2023 into law. Notwithstanding all the steps taken by previous governments and administrations, the Nigerian power sector continues…