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Shared Services Agreement Template for Nigeria

A comprehensive legal agreement governed by Nigerian law that establishes the framework for shared services arrangements between companies. The document outlines the provision of centralized services such as IT, HR, finance, or administrative support, detailing service levels, pricing, governance structures, and operational requirements. It incorporates relevant Nigerian regulatory requirements, including compliance with CAMA 2020, data protection regulations, and tax laws, while establishing clear performance metrics and risk allocation between the parties.

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What is a Shared Services Agreement?

The Shared Services Agreement is essential for organizations operating in Nigeria that wish to centralize certain business functions for improved efficiency and cost optimization. This document is particularly relevant in the context of group companies, corporate restructurings, or strategic partnerships where shared services models can generate economies of scale. The agreement comprehensively addresses service scope, performance standards, pricing mechanisms, and governance frameworks while ensuring compliance with Nigerian regulatory requirements, including CAMA 2020, tax regulations, and data protection laws. It is designed to provide clarity on service delivery expectations, risk allocation, and operational procedures while maintaining flexibility for service modifications as business needs evolve.

What sections should be included in a Shared Services Agreement?

1. Parties: Identification of the service provider and recipient entities, including registration details and addresses

2. Background: Context of the agreement, relationship between parties, and general purpose of the shared services arrangement

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

4. Services: Overview of services to be provided, service standards, and delivery methodology

5. Service Levels: Performance metrics, KPIs, and measurement criteria

6. Charges and Payment: Fee structure, payment terms, invoicing process, and cost allocation methodology

7. Duration and Termination: Term of agreement, renewal provisions, and termination rights

8. Obligations of Service Provider: Key responsibilities, commitments, and warranties of the service provider

9. Obligations of Service Recipient: Requirements, commitments, and responsibilities of the service recipient

10. Governance: Management structure, reporting requirements, and oversight mechanisms

11. Intellectual Property: Ownership and usage rights of IP created or used in service delivery

12. Confidentiality: Protection and handling of confidential information

13. Data Protection: Compliance with Nigerian Data Protection Regulation and data handling procedures

14. Liability and Indemnification: Allocation of risks, limitation of liability, and indemnification provisions

15. Force Majeure: Events excusing performance and related procedures

16. Dispute Resolution: Process for resolving disputes, including jurisdiction and governing law

17. General Provisions: Standard boilerplate clauses including notices, assignment, and entire agreement

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

1. Transition Services: Include when initial setup or eventual transition of services is complex and requires detailed planning

2. Business Continuity: Add for critical services requiring disaster recovery and business continuity planning

3. Staff Transfer: Include when the arrangement involves transfer or secondment of employees

4. Change Control: Add for complex services requiring formal processes for service modifications

5. Compliance with Anti-Corruption Laws: Include for cross-border services or when dealing with government entities

6. Parent Company Guarantee: Add when financial security from a parent company is required

7. Foreign Exchange Provisions: Include for cross-border services with foreign currency considerations

8. Tax Provisions: Add detailed tax clauses when complex tax implications exist

9. Audit Rights: Include for regulated industries or when significant compliance obligations exist

What schedules should be included in a Shared Services Agreement?

1. Schedule 1 - Services Description: Detailed description of each service, including scope, specifications, and exclusions

2. Schedule 2 - Service Levels: Detailed service level requirements, measurement methods, and penalties/remedies

3. Schedule 3 - Charges: Detailed pricing structure, cost allocation methodology, and payment calculations

4. Schedule 4 - Key Personnel: List of key personnel from both parties responsible for service delivery and management

5. Schedule 5 - Governance Procedures: Detailed procedures for service management, escalation, and reporting

6. Schedule 6 - Technical Requirements: Technical specifications, systems requirements, and integration details

7. Schedule 7 - Form of Reports: Templates and formats for required service reports and documentation

8. Schedule 8 - Exit Plan: Procedures and requirements for service termination and transition

9. Appendix A - Contact Details: Contact information for key personnel and authorized representatives

10. Appendix B - Approved Subcontractors: List of approved subcontractors and their permitted scope of work

Authors

Alex Denne

Advisor @ GenieAI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents

Jurisdiction

Nigeria

Publisher

GenieAI

Document Type

Service Agreement

Cost

Free to use

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