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A Debit Authority Letter is a essential banking document used in the Nigerian financial sector when an account holder needs to authorize their bank to make regular automatic deductions from their account. This document type is particularly relevant when setting up standing orders, direct debits, or recurring payments for various purposes such as loan repayments, utility bills, or subscription services. The letter must comply with Nigerian banking regulations, including the Banks and Other Financial Institutions Act (BOFIA) 2020 and Central Bank of Nigeria guidelines. It typically includes detailed information about the account holder, their bank account, the authorized payment amount and frequency, beneficiary details, and the duration of the authority. This document is crucial for both individual and corporate customers who wish to automate their regular payment obligations while maintaining proper documentation and authorization trails.

1. Letter Header: Account holder's name and contact details, date, and bank's name and address

2. Reference Line: Account number and any relevant reference numbers

3. Subject Line: Clear indication that this is a Debit Authority Letter

4. Account Details: Full details of the account to be debited, including account name, number, and branch details

5. Authorization Statement: Clear authorization for the bank to debit the specified account

6. Payment Details: Specific amount, frequency, and purpose of the authorized debits

7. Duration: Period for which the authority is valid, including start date and end date if applicable

8. Cancellation Terms: Conditions and process for canceling the debit authority

9. Account Holder's Declaration: Statement confirming understanding and agreement to the terms

10. Signature Block: Space for account holder's signature, name, and date