Production Services Agreement Template for Nigeria

A comprehensive legal agreement governed by Nigerian law that establishes the terms and conditions under which a service provider will perform production-related services for a client. The document covers essential aspects including scope of services, performance standards, payment terms, personnel requirements, equipment specifications, and compliance with Nigerian regulations including labor laws, environmental standards, and local content requirements. It incorporates provisions for risk allocation, quality control, and dispute resolution while ensuring alignment with Nigerian commercial and industrial regulations.

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What is a Production Services Agreement?

The Production Services Agreement is essential for businesses operating in Nigeria that require external production support or wish to outsource production operations. This document is commonly used across various industrial sectors and must comply with Nigerian legislation, including the Labour Act, Environmental Standards Regulations, and Local Content Development requirements. The agreement typically details production specifications, performance standards, resource allocation, quality control measures, and risk management procedures. It's particularly important for ensuring clear delineation of responsibilities, protecting both parties' interests, and maintaining compliance with Nigerian regulatory requirements. The document should be customized based on specific industry requirements, production complexity, and scale of operations while maintaining alignment with Nigerian contract law principles.

What sections should be included in a Production Services Agreement?

1. Parties: Identification of the parties entering into the agreement, including full legal names and addresses

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

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

4. Scope of Services: Detailed description of production services to be provided

5. Term and Termination: Duration of the agreement and circumstances for termination

6. Payment Terms: Pricing, payment schedule, invoicing requirements, and payment methods

7. Performance Standards: Quality requirements and performance metrics for the services

8. Personnel Requirements: Qualifications and requirements for personnel providing the services

9. Equipment and Materials: Responsibilities for providing and maintaining production equipment and materials

10. Health and Safety: Safety requirements and compliance with health regulations

11. Intellectual Property Rights: Ownership and usage rights of any IP created during production

12. Confidentiality: Protection of confidential information and trade secrets

13. Liability and Indemnification: Allocation of risks and responsibilities between parties

14. Insurance: Required insurance coverage and minimum limits

15. Force Majeure: Provisions for handling events beyond parties' control

16. Dispute Resolution: Procedures for resolving disputes between parties

17. Governing Law: Specification of Nigerian law as governing law and jurisdiction

18. General Provisions: Standard boilerplate clauses including notices, amendments, and assignment

What sections are optional to include in a Production Services Agreement?

1. Environmental Compliance: Required when production activities have significant environmental impact

2. Export Control: Needed when products or services involve international trade

3. Local Content Requirements: Required when subject to Nigerian Content Development regulations

4. Currency and Exchange Rate: Include when dealing with international payments or multiple currencies

5. Training and Knowledge Transfer: Important when local staff training is part of the arrangement

6. Security Requirements: Necessary when dealing with sensitive locations or materials

7. Quality Control Procedures: Required for specialized production processes

8. Subcontracting: Include when subcontracting will be permitted

9. Technology Transfer: Needed when technical knowledge sharing is part of the agreement

What schedules should be included in a Production Services Agreement?

1. Schedule A - Service Specifications: Detailed technical specifications of the production services

2. Schedule B - Pricing and Payment Schedule: Detailed breakdown of costs, rates, and payment milestones

3. Schedule C - Performance Metrics: Specific KPIs and performance standards

4. Schedule D - Equipment List: Detailed list of equipment to be used or provided

5. Schedule E - Personnel Requirements: Specific qualifications and experience requirements for key personnel

6. Schedule F - Production Schedule: Timeline and milestones for production activities

7. Schedule G - HSE Requirements: Detailed health, safety, and environmental requirements

8. Schedule H - Quality Control Procedures: Specific quality control processes and standards

9. Appendix 1 - Required Forms: Standard forms for reports, notifications, or requests

10. Appendix 2 - Insurance Requirements: Detailed insurance specifications and certificates

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

Jurisdiction

Nigeria

Publisher

Genie AI

Cost

Free to use

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