Document background
The Supplier Development Agreement is a crucial document used when a company aims to enhance the capabilities and performance of its suppliers within the Nigerian business context. This agreement type is particularly relevant in situations where structured supplier development is necessary to meet quality standards, operational requirements, or local content objectives. The document typically includes detailed provisions for performance improvement targets, technology transfer, training programs, and quality management systems, while ensuring compliance with Nigerian regulations including the Local Content Development Act and relevant sector-specific legislation. It's especially important in industries where supplier capability is critical to operational success and where there's a strategic need to develop long-term, mutually beneficial relationships with key suppliers. The agreement addresses both the commercial and technical aspects of the development program, including specific KPIs, development timelines, and resource commitments from both parties.
