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The Bid Bond Bank Guarantee is a crucial document in Nigerian tender processes, whether for public or private sector projects. It serves as a risk mitigation tool for project owners, ensuring that only serious bidders participate in the tender process. The guarantee typically amounts to 2-5% of the bid value and becomes payable if the bidder withdraws their bid during the validity period, refuses to sign the contract if awarded, or fails to provide required performance security. This document must comply with Nigerian banking laws and regulations, including BOFIA 2020 and CBN guidelines. The guarantee's format and content are often specified in tender documents, and banks usually issue them against counter-indemnities from the bidder. Understanding this document is essential for project owners, contractors, and banks operating in the Nigerian market.

1. Bank Details and Reference: Information identifying the issuing bank and guarantee reference number

2. Beneficiary Details: Full identification of the entity receiving the guarantee (typically the project owner/employer)

3. Applicant Details: Full identification of the bidder on whose behalf the guarantee is issued

4. Tender/Bid Reference: Details of the specific tender or bid for which the guarantee is issued

5. Guarantee Amount: The specific sum guaranteed, expressed in both figures and words

6. Terms of Guarantee: Core obligations of the bank, conditions for payment, and validity period

7. Claim Procedure: Process and requirements for making a claim under the guarantee

8. Expiry Provisions: Conditions under which the guarantee expires or becomes invalid

9. Governing Law and Jurisdiction: Specification of Nigerian law as governing law and jurisdiction for disputes

10. Bank's Execution: Formal execution block for bank signatories