Business Service Agreement for Nigeria

Business Service Agreement Template for Nigeria

A comprehensive legal document governed by Nigerian law that establishes the terms and conditions under which one party (the Service Provider) agrees to provide specific business services to another party (the Client). This agreement includes detailed provisions for service delivery, payment terms, performance standards, and compliance with Nigerian regulations including CAMA 2020 and relevant sector-specific laws. It addresses key aspects such as service scope, obligations, intellectual property rights, confidentiality, liability, and dispute resolution mechanisms within the Nigerian legal framework.

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What is a Business Service Agreement?

The Business Service Agreement serves as a fundamental legal instrument in Nigerian commercial transactions, essential for formalizing service-based business relationships. This document is particularly relevant in the context of Nigeria's growing service sector and increasing business process outsourcing activities. It should be used whenever a company engages external service providers for significant business functions, ensuring compliance with Nigerian legislation including the Companies and Allied Matters Act (CAMA) 2020, Federal Competition and Consumer Protection Act, and sector-specific regulations. The agreement typically covers service specifications, performance metrics, payment terms, and risk allocation, while incorporating necessary provisions for data protection, intellectual property rights, and dispute resolution under Nigerian law. It's designed to protect both parties' interests while ensuring clarity in service delivery expectations and legal obligations.

What sections should be included in a Business Service Agreement?

1. Parties: Identification and details of the service provider and client, including registered addresses and company registration numbers

2. Background: Context of the agreement and brief description of the business relationship

3. Definitions and Interpretation: Definitions of key terms used throughout the agreement and rules of interpretation

4. Scope of Services: Detailed description of services to be provided, including deliverables and service standards

5. Term and Commencement: Duration of the agreement and conditions for commencement

6. Fees and Payment Terms: Service fees, payment schedule, invoicing procedures, and late payment consequences

7. Service Provider's Obligations: Key responsibilities and commitments of the service provider

8. Client's Obligations: Key responsibilities and commitments of the client

9. Intellectual Property Rights: Ownership and usage rights of pre-existing and created IP

10. Confidentiality: Protection and handling of confidential information

11. Liability and Indemnification: Limitation of liability and indemnification obligations

12. Termination: Grounds for termination and termination procedures

13. Force Majeure: Provisions for unforeseeable circumstances preventing performance

14. Governing Law and Jurisdiction: Applicable law and courts having jurisdiction

15. General Provisions: Standard boilerplate clauses including notices, entire agreement, and amendments

What sections are optional to include in a Business Service Agreement?

1. Service Levels: Detailed service level agreements (SLAs) and performance metrics - include when specific performance standards are crucial

2. Data Protection: Specific provisions for handling personal data - include when services involve data processing

3. Anti-Corruption and Compliance: Specific compliance requirements - include for high-value or government-related contracts

4. Insurance: Insurance requirements and coverage - include for high-risk services

5. Personnel: Requirements for staff qualifications and conduct - include when service delivery involves dedicated personnel

6. Subcontracting: Terms for engaging subcontractors - include when subcontracting is anticipated

7. Change Control: Procedures for changing service scope or terms - include for long-term or complex services

8. Business Continuity: Disaster recovery and business continuity requirements - include for critical services

9. Exit Management: Detailed exit procedures - include for complex services requiring transition

10. Non-Competition: Restrictions on competitive activities - include when protecting market position is crucial

What schedules should be included in a Business Service Agreement?

1. Schedule 1 - Service Description: Detailed specification of services, methodologies, and deliverables

2. Schedule 2 - Fees and Payment Schedule: Detailed breakdown of fees, rates, and payment milestones

3. Schedule 3 - Service Levels: Detailed performance metrics, measurement methods, and remedies

4. Schedule 4 - Key Personnel: Details of key staff members and their roles

5. Schedule 5 - Client Dependencies: List of items, information, or access to be provided by the client

6. Schedule 6 - Change Control Procedure: Detailed process for requesting and implementing changes

7. Schedule 7 - Approved Subcontractors: List of pre-approved subcontractors if applicable

8. Appendix A - Form of Change Order: Template for documenting agreed changes to services

9. Appendix B - Security Requirements: Detailed security protocols and requirements

10. Appendix C - Reports and Documentation: Templates and requirements for regular reporting

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

Nigeria

Publisher

Genie AI

Document Type

Service Agreement

Cost

Free to use
Relevant legal definitions
Clauses
Relevant Industries

Information Technology

Professional Services

Management Consulting

Financial Services

Telecommunications

Healthcare

Manufacturing

Energy and Utilities

Real Estate

Education

Logistics and Transportation

Business Process Outsourcing

Construction

Retail

Agriculture

Relevant Teams

Legal

Procurement

Operations

Finance

Compliance

Risk Management

Commercial

Business Development

Project Management

Vendor Management

Contract Administration

Corporate Affairs

Service Delivery

Account Management

Business Operations

Relevant Roles

Chief Executive Officer

Chief Operating Officer

Legal Counsel

Procurement Manager

Contract Manager

Business Development Manager

Operations Director

Compliance Officer

Project Manager

Finance Director

Risk Manager

Commercial Director

Service Delivery Manager

Account Manager

General Counsel

Head of Operations

Chief Financial Officer

Vendor Management Specialist

Business Unit Head

Department Manager

Industries
Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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