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A Non Interest Bearing Promissory Note is commonly used in Nigeria when parties need to document a debt obligation without incorporating interest charges, making it particularly suitable for interest-free lending arrangements and certain Islamic finance transactions. This document type is frequently employed in both commercial and personal contexts, providing a formal record of debt while complying with Nigerian legal requirements. The note must specify the principal amount, payment terms, and parties' details, while explicitly stating that no interest will accrue. It's governed by Nigerian law, particularly the Bills of Exchange Act, and requires proper execution, including witnesses and possibly notarization, to be legally enforceable. The document is especially useful in situations where parties prefer or require interest-free financing arrangements, such as family loans, certain business transactions, or religious-compliant financing.

1. Promise to Pay: Clear statement of the unconditional promise to pay a specific sum of money, including the principal amount in both numbers and words

2. Maker and Payee Details: Full legal names and addresses of both the maker (promisor) and the payee (promisee)

3. Payment Terms: Specific details about when and how the payment will be made, including maturity date and payment location

4. No Interest Provision: Explicit statement that no interest shall accrue on the principal amount

5. Default Provisions: Consequences of failure to pay when due, including acceleration clause if applicable

6. Governing Law: Statement that the note is governed by Nigerian law

7. Signature Block: Space for maker's signature, date, and witness details as required by Nigerian law