This is general information about Nigerian commercial practice, not legal advice. Speak to a qualified lawyer about your specific arrangement before relying on it.
Many Nigerian businesses run on trust and handshake deals, until something goes wrong. A written contract is not about distrust; it is the record everyone relies on when memories differ and money is at stake.
The relationships that most need one
Not every transaction needs a formal contract, but certain relationships carry enough risk that operating without one is a gamble. Put it in writing when:
- Money will change hands over time, in stages, or on credit.
- The work is complex, phased, or open to interpretation.
- You are sharing something valuable: money, data, intellectual property, or a customer base.
- The other party is new to you, or the amounts involved are significant to your business.
- Two or more people are going into business together.
What a good agreement always includes
A useful contract answers the questions people argue about later, before they arise:
- The parties. Full legal names and, for companies, the registered entity, not just a trading name.
- The scope. Exactly what is being supplied or done, and what is not.
- Price and payment. The amount, currency, timing, and what happens on late or non-payment.
- Termination. How either side can end the arrangement, and what is owed if they do.
- Dispute resolution. Whether disputes go to court, arbitration, or mediation, and under Nigerian law.
- Confidentiality and IP. Who owns what is created, and what must be kept private.
Why a template is not enough
Downloaded templates and copied agreements are common, and dangerous. They often reference the wrong jurisdiction, omit terms specific to your deal, or contain obligations you did not intend. A short, properly drafted agreement tailored to the actual transaction protects you far better than a long generic one that does not fit.
When to consult a lawyer
Involve a lawyer when the value or risk of the relationship matters to your business, before you sign, not after a dispute. A lawyer can draft an agreement that reflects your actual deal, review a contract someone else has put in front of you, and flag terms that quietly shift risk onto you. For recurring transactions, a well-drafted standard agreement pays for itself many times over.
Book a ConsultationThis article is provided for general information about Nigerian law and practice and does not constitute legal advice or create a lawyer-client relationship. Laws and procedures change and vary by state. You should obtain advice from a qualified legal practitioner about your specific circumstances before acting. Sam Onah & Associates accepts no responsibility for action taken in reliance on this general information.