Financial Lease Contract for Nigeria

Financial Lease Contract Template for Nigeria

A comprehensive legal agreement governed by Nigerian law that establishes the terms and conditions for a financial lease arrangement between a lessor and lessee. The document details the financial obligations, equipment specifications, maintenance requirements, and rights and responsibilities of all parties involved in the lease transaction. It incorporates provisions compliant with the Nigerian Equipment Leasing Act and other relevant financial regulations, including specific requirements for asset ownership, payment terms, default conditions, and end-of-lease arrangements. The agreement also addresses risk allocation, insurance requirements, and dispute resolution mechanisms under Nigerian jurisdiction.

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What is a Financial Lease Contract?

This Financial Lease Contract is essential for businesses and financial institutions operating in Nigeria who engage in equipment or asset financing arrangements. The document is structured to comply with Nigerian legislation, particularly the Equipment Leasing Act 2015 and the Banks and Other Financial Institutions Act 2020. It is used when a lessee requires long-term use of equipment or assets while the lessor maintains ownership throughout the lease period. The agreement typically includes detailed financial terms, equipment specifications, maintenance requirements, insurance obligations, and end-of-lease options. It provides security for the lessor while allowing the lessee to acquire and use essential business assets without immediate full capital investment. The document incorporates necessary provisions for regulatory compliance, risk management, and dispute resolution under Nigerian law.

What sections should be included in a Financial Lease Contract?

1. Parties: Identification of lessor and lessee with full legal names and addresses

2. Background: Context of the lease arrangement and brief description of the transaction

3. Definitions: Detailed definitions of terms used throughout the agreement

4. Equipment Description: Detailed description of the leased equipment or asset

5. Lease Term and Payments: Duration of lease and detailed payment obligations including amounts, frequency, and payment methods

6. Delivery and Acceptance: Terms regarding the delivery, inspection, and acceptance of the leased equipment

7. Title and Ownership: Clarification of ownership rights and title retention by lessor

8. Use and Maintenance: Obligations regarding equipment use, maintenance, and repair responsibilities

9. Insurance Requirements: Mandatory insurance coverage and responsibilities

10. Representations and Warranties: Statements of fact and promises by both parties

11. Events of Default: Circumstances constituting default and consequences

12. Remedies: Rights and remedies available to parties in case of default

13. Termination: Conditions and procedures for early termination

14. Governing Law: Specification of Nigerian law as governing law

15. Dispute Resolution: Procedures for resolving disputes including jurisdiction

What sections are optional to include in a Financial Lease Contract?

1. Purchase Option: Terms for lessee's option to purchase equipment at end of lease, included when purchase option is offered

2. Assignment and Subletting: Terms regarding transfer of rights, included when assignment or subletting is permitted

3. Environmental Compliance: Environmental obligations, included for equipment with environmental impact

4. Import/Export Provisions: Included when equipment is imported or may be exported

5. Tax Provisions: Detailed tax implications and responsibilities, included for complex tax structures

6. Force Majeure: Provisions for unforeseen circumstances, included based on risk assessment

7. Guarantees: Third-party guarantees, included when additional security is required

What schedules should be included in a Financial Lease Contract?

1. Schedule A - Equipment Specifications: Detailed technical specifications of leased equipment

2. Schedule B - Payment Schedule: Detailed breakdown of all payments including dates and amounts

3. Schedule C - Acceptance Certificate: Form of acceptance certificate to be signed upon delivery

4. Schedule D - Insurance Requirements: Detailed insurance specifications and minimum coverage requirements

5. Schedule E - Maintenance Requirements: Detailed maintenance procedures and schedules

6. Appendix 1 - Condition Report: Initial condition report of equipment

7. Appendix 2 - Operating Instructions: Equipment operating procedures and guidelines

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

Financing Agreement

Cost

Free to use
Relevant legal definitions
Clauses
Relevant Industries

Manufacturing

Construction

Agriculture

Transportation

Healthcare

Mining

Oil and Gas

Telecommunications

Heavy Industry

Aviation

Maritime

Real Estate

Information Technology

Infrastructure Development

Relevant Teams

Legal

Finance

Operations

Risk Management

Procurement

Compliance

Treasury

Asset Management

Credit

Business Development

Relevant Roles

Chief Financial Officer

Finance Director

Legal Counsel

Contract Manager

Operations Manager

Risk Manager

Asset Manager

Treasury Manager

Procurement Manager

Compliance Officer

Financial Controller

Equipment Manager

Fleet Manager

Business Development Manager

Credit Risk Officer

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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