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Any 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 agreement provided.

The 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 charges;

There has 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;

The 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 and demanders.

It 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.

The 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.