company can enter into a subcontracting agreement with a subcontractee.
The subcontractor shall enjoy a tax rebate equal to 10% of the annual
value of the Invoices paid to subcontracted under the subcontracting
subcontracting parties have used the model subcontracting agreement
delivered by the Nigerian Association for Subcontracting Promotion (NASP),
which provides inter alia for the swift payment of subcontracting
been an effective transfer of technology by the subcontractor to the
Subcontractee; The subcontractor can prove at least 5 man/days of
training of the subcontractee to the use of the technology; The
subcontracting relationship has lasted for at least 1 year;
subcontractee is a Nigerian enterprise with less than 300 employees. Raw
materials or semi-finished products imported by a subcontractee in
execution of the subcontracting agreement in view of re-exportation by
the subcontractor as an end product are exempted from import duties.
The NASP keeps a database of supply and
demand of manufacturing services and acts as a broker between suppliers
provides interested parties with the model subcontracting agreement and
Provides adequate information for the proper implementation of such
agreement; It acts as a conciliator in all disputes between a
subcontractor and a subcontractee; its decision shall bind the parties.
Ministry of Finance pledges itself to submit disputes arising from a
Subcontracting agreement to the arbitration of the NASP and be bound by
its arbitration decisions in such matters.