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Management Contract for Nigeria

Management Contract Template for Nigeria

A comprehensive legal agreement governed by Nigerian law that establishes a contractual relationship between a company owner/principal and a management contractor. The document outlines the delegation of operational control and management responsibilities to the contractor, including specific powers, duties, performance metrics, and compensation structures. It incorporates requirements from Nigerian legislation, particularly the Companies and Allied Matters Act (CAMA) 2020, Labour Act, and relevant industry-specific regulations, while ensuring compliance with local content requirements where applicable.

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Management Contract

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What is a Management Contract?

The Management Contract is a crucial document used when a business entity wishes to delegate operational control and management responsibilities to a specialized management contractor while retaining ownership. This arrangement is particularly common in Nigeria across various sectors, especially where specialized expertise or international management experience is required. The contract must comply with Nigerian law, particularly CAMA 2020 and sector-specific regulations, while often incorporating local content requirements. It typically includes detailed provisions for management authority, operational control, performance metrics, reporting requirements, and compensation structures. This document is essential for businesses seeking professional management services while ensuring clear accountability and performance standards.

What sections should be included in a Management Contract?

1. Parties: Identification of the company/owner and the management contractor

2. Background: Context of the agreement, including business purpose and objectives

3. Definitions: Key terms used throughout the agreement

4. Appointment and Scope: Formal appointment of the manager and detailed scope of management services

5. Term and Renewal: Duration of the contract and renewal provisions

6. Manager's Rights and Responsibilities: Detailed outline of authority, duties, and decision-making powers

7. Company's Rights and Obligations: Company's responsibilities, including provision of resources and information

8. Personnel and Staffing: Requirements for management team, staffing decisions, and local content compliance

9. Compensation and Payment Terms: Management fees, performance bonuses, and payment mechanisms

10. Reporting and Performance Standards: Required reports, KPIs, and performance evaluation criteria

11. Confidentiality: Protection of confidential information and trade secrets

12. Intellectual Property: Ownership and usage rights of IP developed during the management period

13. Termination: Grounds for termination, notice requirements, and consequences

14. Dispute Resolution: Process for resolving disputes, including jurisdiction and applicable law

15. General Provisions: Standard clauses including notices, amendments, and severability

What sections are optional to include in a Management Contract?

1. Non-Competition: Restrictions on manager's competitive activities, used when protecting market position is crucial

2. Insurance: Specific insurance requirements, used in high-risk industries or when managing valuable assets

3. Force Majeure: Provisions for unforeseen circumstances, particularly relevant in volatile regions or industries

4. Environmental Compliance: Environmental obligations, necessary for industries with environmental impact

5. Technology Transfer: Provisions for transfer of knowledge and technology, important when developing local capabilities

6. Security Requirements: Special security measures, relevant for sensitive industries or locations

7. Local Content Development: Detailed local content requirements, essential in regulated sectors like oil and gas

What schedules should be included in a Management Contract?

1. Schedule 1 - Scope of Services: Detailed breakdown of management services to be provided

2. Schedule 2 - Key Personnel: List of key management positions and required qualifications

3. Schedule 3 - Performance Metrics: Detailed KPIs and performance evaluation criteria

4. Schedule 4 - Fee Structure: Detailed breakdown of management fees, bonuses, and payment calculations

5. Schedule 5 - Required Reports: List and format of required operational and financial reports

6. Schedule 6 - Company Assets: Inventory of assets under management control

7. Appendix A - Power of Attorney: If required, detailed powers granted to management team

8. Appendix B - Compliance Requirements: Specific regulatory and statutory compliance requirements

Authors

Alex Denne

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

Jurisdiction

Nigeria

Publisher

Ƶ

Document Type

Agreement Contract

Cost

Free to use
Relevant legal definitions





































Clauses



































Relevant Industries

Oil and Gas

Manufacturing

Hospitality

Real Estate

Infrastructure

Mining

Agriculture

Healthcare

Telecommunications

Retail

Transportation and Logistics

Education

Relevant Teams

Legal

Operations

Human Resources

Finance

Compliance

Risk Management

Project Management

Business Development

Facilities Management

Contract Administration

Relevant Roles

Chief Executive Officer

Managing Director

Chief Operating Officer

General Manager

Operations Director

Legal Counsel

Compliance Officer

Human Resources Director

Finance Director

Project Manager

Facility Manager

Business Development Manager

Local Content Manager

Risk Manager

Contract Administrator

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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