Document background
The Commission Fee Agreement serves as the foundational document for establishing commission-based business relationships in Nigeria. This agreement is essential when a company (the principal) wishes to engage individuals or entities (agents) to perform services in exchange for commission-based compensation. The document outlines critical aspects such as commission structures, payment terms, performance expectations, and compliance requirements with Nigerian law. It's particularly important in sectors where sales agents, brokers, or representatives operate on a commission basis. The agreement helps prevent disputes by clearly defining the terms of engagement, commission calculations, and payment schedules while ensuring compliance with Nigerian tax regulations, anti-corruption laws, and commercial legislation. Companies should implement a Commission Fee Agreement when establishing any business relationship where compensation is based wholly or partially on commission.
