Industrial Park Lease (Nigeria)
INDUSTRIAL PARK LEASE AGREEMENT
Land Use Act 1978 (Cap L5, LFN 2004) | Tenancy Law of [Governing State] State | Environmental Impact Assessment Act (Cap E12, LFN 2004) | NESREA Act 2007 | Factories Act (Cap F1, LFN 2004)
THIS INDUSTRIAL PARK LEASE AGREEMENT is made on [Effective Date]
BETWEEN:
(1) [Landlord Name] of [Landlord Address] (hereinafter referred to as the "Landlord"); AND
(2) [Tenant Name] of [Tenant Address] (hereinafter referred to as the "Tenant").
RECITALS
A. The Landlord is the holder of [Right of Occupancy Reference] over the land on which [Park Name] is situated, and is authorised to sub-lease units within the park.
B. Governor's consent to this sub-lease has been obtained / applied for: [Governors Consent Reference], pursuant to Section 22 of the Land Use Act 1978.
C. The Tenant wishes to lease the Demised Premises for the Permitted Use on the terms set out in this Agreement.
1. DEMISED PREMISES
1.1 The Landlord hereby leases to the Tenant the following premises within [Park Name] (the "Demised Premises"): [Unit Description]
1.2 Total floor area: [Floor Area]
2. LEASE TERM
2.1 The lease shall commence on [Lease Start Date] and expire on [Lease End Date] (the "Term"), unless earlier terminated in accordance with this Agreement.
2.2 Renewal Option: [Renewal Option]
3. RENT AND SERVICE CHARGE
3.1 The Tenant shall pay to the Landlord an annual rent of [Annual Rent], payable [Rent Payment Schedule].
3.2 In addition to rent, the Tenant shall pay a service charge of [Service Charge] per annum, covering park roads, security, landscaping, common area maintenance, and park management fees.
3.3 All rent and service charges are exclusive of VAT at 7.5% under the Value Added Tax Act (Cap V1, LFN 2004) (if applicable), which the Tenant shall pay in addition.
3.4 Rent Review: [Rent Review Clause]
3.5 Security Deposit: The Tenant shall pay a security deposit of [Security Deposit] on execution of this Agreement, to be held by the Landlord as security for the Tenant's obligations. The deposit shall be returned (without interest) within 30 days after the expiry of the Term, subject to deduction for any outstanding liabilities.
4. PERMITTED USE
4.1 The Tenant shall use the Demised Premises solely for: [Permitted Use]
4.2 The Tenant shall obtain and maintain all regulatory licences, permits, and approvals required for the Permitted Use, including: [Regulatory Licences]
4.3 The Tenant shall not use the Demised Premises for any unlawful purpose or for any purpose that constitutes a nuisance, annoyance, or hazard to other park occupants or the general public.
5. ENVIRONMENTAL AND REGULATORY COMPLIANCE
5.1 The Tenant shall comply with all applicable environmental laws, including the NESREA Act 2007, the Environmental Impact Assessment Act (Cap E12, LFN 2004), and all NESREA sector-specific regulations applicable to the Permitted Use.
5.2 The Tenant shall manage all industrial waste, effluent, and emissions in accordance with NESREA standards and the park's environmental management plan, and shall not discharge any untreated effluent into the park's drainage system.
5.3 The Tenant shall comply with the Factories Act (Cap F1, LFN 2004) and all applicable workplace health and safety regulations in the use of the Demised Premises.
5.4 The Tenant shall indemnify the Landlord against all costs, claims, and liabilities arising from the Tenant's breach of any environmental or regulatory obligation.
6. GOVERNING LAW
6.1 This Agreement is governed by the laws of Nigeria and the laws of [Governing State] State, including the Land Use Act 1978 and applicable tenancy legislation. Disputes shall be resolved by arbitration under the Arbitration and Mediation Act 2023, or in the High Court of [Governing State] State.
Landlord (authorised signatory)
________________
Signature
Tenant (authorised signatory)
________________
Signature
Witness to Landlord's signature
________________
Signature
Witness to Tenant's signature
________________
Signature
What Is a Industrial Park Lease (Nigeria)?
An Industrial Park Lease in Nigeria records the terms on which a tenant occupies premises, including payment, repairs and notice requirements. It records the rental price, deposit, term, maintenance duties, and notice periods between landlord and tenant.
All land in Nigeria is vested in the state governors under the Land Use Act 1978 (Cap L5, LFN 2004), which abolished freehold ownership of land and replaced it with the right of occupancy — either a statutory right of occupancy (granted by the governor over urban land) or a customary right of occupancy (granted by a local government over rural land). An industrial park operator who holds a statutory right of occupancy over the park land may sub-lease individual units or plots to tenants, provided that governor's consent to the sublease is obtained under Section 22 of the Land Use Act 1978. The failure to obtain governor's consent renders the sublease void.
The principal types of industrial zones in Nigeria where industrial park leases are common include: the Lekki Free Zone (Lagos State, managed by the Lekki Free Zone Development Company); the Onne Oil and Gas Free Zone (Rivers State, managed by the Oil and Gas Free Zone Authority, OGFZA); the Calabar Free Trade Zone (Cross River State, managed by NEPZA — the Nigerian Export Processing Zones Authority); the Kano Free Trade Zone; and numerous private and state-government-managed industrial parks and estates — such as the Lagos Agro-processing, Productivity, Investment and Diversification Hub (RAPIDS), the Ogun-Guangdong Free Trade Zone, and industrial parks managed by state development corporations.
The Nigerian Export Processing Zones Authority (NEPZA), established under the NEPZA Act (Cap N107, LFN 2004), regulates enterprises operating in export processing zones (EPZs) and free trade zones, which offer tax incentives and customs waivers for export-oriented manufacturers. Leases within NEPZA-regulated zones must comply with NEPZA's enterprise regulations and investment frameworks in addition to the general law of property.
Industrial park leases in Nigeria are also subject to: the Environmental Impact Assessment Act (Cap E12, LFN 2004) for industrial activities requiring EIA approvals; the National Environmental Standards and Regulations Enforcement Agency (NESREA) Act 2007 for environmental compliance; the Federal Fire Service Act and state fire safety regulations; the Factories Act (Cap F1, LFN 2004) for workplace safety standards in manufacturing facilities; and applicable state planning and development control laws.
The legal framework governing the Industrial Park Lease (Nigeria) in Nigeria draws on several key statutes and regulatory bodies. Under Nigerian law, the Companies and Allied Matters Act 2020 (CAMA) regulates corporate entities through the Corporate Affairs Commission (CAC). The Labour Act (Cap L1 LFN 2004) and the National Industrial Court of Nigeria (NICN) govern employment disputes. The Nigeria Data Protection Regulation (NDPR) 2019 and the Nigeria Data Protection Commission (NDPC) protect personal data. The Federal Inland Revenue Service (FIRS) administers tax obligations under the Companies Income Tax Act. The Federal High Court and state High Courts have jurisdiction over civil matters. Parties executing a Industrial Park Lease (Nigeria) in Nigeria should confirm the document reflects current law, including any amendments enacted since the original drafting date. The Land Use Act 1978 (Cap. L5) sets the foundational requirements.
When Do You Need a Industrial Park Lease (Nigeria)?
An Industrial Park Lease in Nigeria is required whenever a company seeks to establish or expand manufacturing, warehousing, logistics, or processing operations within a managed industrial estate.
An Industrial Park Lease is needed when a manufacturing company — in the food processing, pharmaceutical, automotive assembly, textile, or consumer goods sectors — wishes to lease a factory unit or industrial plot within a managed industrial park in Lagos, Ogun, Kano, Rivers, or another state, to benefit from shared infrastructure (roads, power, water, waste treatment) managed by the park operator.
An Industrial Park Lease is required when a logistics or e-commerce company seeks to establish a distribution centre or fulfilment warehouse within a commercial and industrial park in Nigeria, taking advantage of the park's proximity to ports, airports, or major road networks.
An Industrial Park Lease is needed when a foreign manufacturing company establishing a Nigerian subsidiary under the Companies and Allied Matters Act 2020 (CAMA 2020) and registered with the Nigerian Investment Promotion Commission (NIPC) wishes to operate within an export processing zone under NEPZA, where the lease from the zone operator provides the basis for the enterprise's operational licence.
An Industrial Park Lease is required when the operator of a special economic zone (SEZ) or free trade zone invests in Nigeria and leases land from the zone authority (NEPZA or OGFZA) to develop and sub-lease industrial plots and factory shells to investor companies.
An Industrial Park Lease is needed when a small or medium-scale enterprise (SME) in Nigeria's manufacturing sector wishes to lease a serviced industrial unit in a privately operated industrial park, avoiding the capital expenditure of land acquisition and factory construction while benefiting from professional park management.
Parties in Nigeria should prepare a Industrial Park Lease (Nigeria) proactively rather than waiting for a dispute to arise. Courts interpret agreements based on the written terms rather than oral representations. Under Nigerian law, the Companies and Allied Matters Act 2020 (CAMA) regulates corporate entities through the Corporate Affairs Commission (CAC). The Labour Act (Cap L1 LFN 2004) and the National Industrial Court of Nigeria (NICN) govern employment disputes. The Nigeria Data Protection Regulation (NDPR) 2019 and the Nigeria Data Protection Commission (NDPC) protect personal data. The Federal Inland Revenue Service (FIRS) administers tax obligations under the Companies Income Tax Act. The Federal High Court and state High Courts have jurisdiction over civil matters. Where the transaction involves regulated activities, prior approval from the relevant authority may be required before execution.
What to Include in Your Industrial Park Lease (Nigeria)
A valid Industrial Park Lease in Nigeria must contain the following essential elements to be enforceable and to protect both the landlord and tenant.
Parties: Full legal names, CAMA 2020 RC Numbers, addresses, and contact details of the park operator (Landlord) and the tenant company (Tenant). The right of occupancy details of the Landlord over the park land should be recited.
Description of Demised Premises: Precise description of the leased unit — unit number, plot number, floor area in square metres, location within the park, and any ancillary areas (car parking, yard, loading bays). Reference the park's survey plan number and title document.
Governor's Consent Reference: The reference number of the governor's consent obtained under Section 22 of the Land Use Act 1978 for the sub-lease, or confirmation that consent has been applied for. Governor's consent is mandatory for sub-leases in excess of three years in most states.
Lease Term: The duration of the lease — commencement date, expiry date, and any renewal options. Industrial park leases in Nigeria commonly run for 3, 5, or 10 years with options to renew.
Rent: The annual rent in Nigerian Naira (NGN), the rent payment schedule (monthly, quarterly, or annual), and rent review provisions. Industrial rents in Nigeria are subject to naira depreciation, and rent review clauses indexed to inflation or the CBN exchange rate are common.
Permitted Use: The specific industrial purpose for which the demised premises may be used — manufacturing, warehousing, cold storage, food processing, etc. — and restrictions on use that may affect the park's planning approvals, environmental permits, or NEPZA licence.
Service Charges: The park management fee, utility charges (electricity from DISCOM or GENCO, water, internet), waste management fees, and security charges payable by the Tenant in addition to the base rent.
Environmental Obligations: The Tenant's obligations under NESREA regulations and the Environmental Impact Assessment Act to manage industrial waste, effluent, emissions, and hazardous materials in compliance with Nigerian environmental law.
Alterations and Fit-Out: The Tenant's right (if any) to alter or fit out the demised premises for its industrial use, subject to the Landlord's consent and compliance with the Factories Act.
Security Deposit: The security deposit (typically 3-6 months' rent in NGN) held by the Landlord as security for the Tenant's obligations.
Governing Law: Nigerian law and the law of the relevant state.
Additional compliance elements for a Industrial Park Lease (Nigeria) used in Nigeria include: Under Nigerian law, the Companies and Allied Matters Act 2020 (CAMA) regulates corporate entities through the Corporate Affairs Commission (CAC). The Labour Act (Cap L1 LFN 2004) and the National Industrial Court of Nigeria (NICN) govern employment disputes. The Nigeria Data Protection Regulation (NDPR) 2019 and the Nigeria Data Protection Commission (NDPC) protect personal data. The Federal Inland Revenue Service (FIRS) administers tax obligations under the Companies Income Tax Act. The Federal High Court and state High Courts have jurisdiction over civil matters. Forms-legal.com provides this template as a starting point for Nigeria-compliant documentation.
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Reference this free template in an article, syllabus, or research note:
Forms Legal. (2026). Industrial Park Lease (Nigeria) (Nigeria) [Legal document template]. Forms Legal. https://forms-legal.com/nigeria/real-estate/commercial/industrial-park-lease-nigeria
"Industrial Park Lease (Nigeria) (Nigeria)." Forms Legal, 2026, https://forms-legal.com/nigeria/real-estate/commercial/industrial-park-lease-nigeria.
@misc{formslegal-industrial-park-lease-nigeria,
author = {{Forms Legal}},
title = {Industrial Park Lease (Nigeria) (Nigeria)},
year = {2026},
howpublished = {\url{https://forms-legal.com/nigeria/real-estate/commercial/industrial-park-lease-nigeria}},
note = {Free legal document template. Based on Land Use Act 1978 (Cap. L5)}
}Frequently Asked Questions
Yes. Under Section 22 of the Land Use Act 1978 (Cap L5, LFN 2004), the holder of a statutory right of occupancy over urban land in Nigeria must obtain the prior written consent of the state governor before subletting or subleasing the land or any interest in it. An industrial park lease is in substance a sublease of land or building rights by the park operator (who holds the right of occupancy over the park) to the tenant company. The failure to obtain governor's consent renders the sublease void and unenforceable under Nigerian law, as confirmed by the Supreme Court of Nigeria in multiple decisions including Savannah Bank v Ajilo [1989] 1 NWLR (Pt 97) 305. In practice, obtaining governor's consent in Nigeria can take several months and involves payment of consent fees to the state land registry. Some industrial park operators obtain a master consent covering all sub-leases within the park, which simplifies the process for individual tenants. Tenants should insist that the lease expressly represents whether consent has been obtained or is pending, and whether the lease is conditional on consent being granted.
Industrial park leases in Nigeria have several tax implications for both landlords and tenants. For the landlord (park operator): rental income is subject to Companies Income Tax (CIT) at 30% for large companies and 20% for medium-sized companies under the Companies Income Tax Act (CITA, Cap C21, LFN 2004) as amended by the Finance Act 2023. Value Added Tax (VAT) at 7.5% under the Value Added Tax Act (Cap V1, LFN 2004) applies to commercial property rent in Nigeria — the landlord must charge VAT on rent if registered for VAT with FIRS. For the tenant: rent paid to a non-resident landlord is subject to Withholding Tax (WHT) at 10% under the CITA; rent paid to a resident company landlord is subject to WHT at 10%, deductible by the tenant and remittable to FIRS. Tenants in NEPZA-regulated export processing zones may be exempt from CIT and WHT for the first five years under the NEPZA Act incentive regime. Industrial tenants should also consider Capital Gains Tax (CGT) implications on the disposal of lease interests and stamp duty on lease agreements under the Stamp Duties Act (Cap S8, LFN 2004).
Tenants operating in Nigerian industrial parks are subject to extensive environmental compliance obligations under Nigerian federal and state law. The key environmental regimes include: (1) National Environmental Standards and Regulations Enforcement Agency (NESREA) Act 2007 — NESREA enforces environmental standards for industrial facilities, including effluent discharge limits, air emission standards, and waste management requirements. Tenants must obtain NESREA operating permits and comply with sector-specific environmental regulations. (2) Environmental Impact Assessment Act (Cap E12, LFN 2004) — industrial projects above prescribed thresholds require an Environmental Impact Assessment (EIA) approved by the Federal Ministry of Environment before commencing operations. (3) National Environmental Regulations under the NESREA Act — sector-specific regulations govern industries including food processing, textiles, pharmaceuticals, oil and gas, and chemical manufacturing. (4) State environmental agencies — Lagos State Environmental Protection Agency (LASEPA), Rivers State Environmental Sanitation Authority, and equivalent state bodies enforce state-level environmental standards. (5) Industrial park management obligations — most industrial park leases impose park-specific environmental rules as part of the service charge regime, including waste segregation, effluent pre-treatment, and compliance audits. Non-compliance can result in lease termination, NESREA enforcement orders, and criminal penalties.
The Nigerian Export Processing Zones Authority (NEPZA) is a federal government agency established under the Nigerian Export Processing Zones Act (Cap N107, LFN 2004) to create, manage, and promote export processing zones (EPZs) and free trade zones (FTZs) in Nigeria. NEPZA regulates all enterprises operating within designated free zones, including the Calabar Free Trade Zone, the Kano Free Trade Zone, the Maigatari Border Free Trade Zone, and numerous other gazetted zones. Industrial leases within NEPZA-regulated zones are governed by a dual regulatory framework: the Land Use Act 1978 and general Nigerian property law (for the physical land and building rights), and the NEPZA Act and NEPZA Enterprise Regulations (for the operating licence, customs treatment, and tax incentives applicable to zone enterprises). Key NEPZA benefits for industrial tenants in free zones include: (1) exemption from import and export duties on raw materials, equipment, and finished goods; (2) Companies Income Tax holiday for the first three to five years of operation; (3) exemption from foreign exchange controls for trade transactions within the zone; and (4) freedom to employ skilled expatriate workers subject to NEPZA's expatriate quota requirements. Industrial leases in NEPZA zones must be approved by NEPZA as part of the enterprise licensing process, and the lease term must align with the enterprise licence duration.
Industrial park leases in Nigeria typically address utilities and infrastructure through a combination of base rent and separate service charges, given the unreliable state of public utility supply in Nigeria. The utilities and infrastructure provisions commonly addressed in Nigerian industrial park leases include: (1) Electricity — industrial parks in Nigeria typically provide power through dedicated 33kV or 11kV feeders from the relevant Distribution Company (DISCOM) under the Nigerian Electricity Regulatory Commission (NERC) framework, supplemented by independent power plants (IPPs) or captive gas-powered generators managed by the park operator. Tenants pay for electricity consumed at bulk tariff rates. (2) Water supply — parks typically provide treated water from boreholes or state water boards, metered and billed separately. (3) Roads and drainage — internal park roads, drainage channels, and storm water management are maintained by the park operator and funded through service charges. (4) Security — 24-hour security, CCTV, and perimeter fencing managed by the park operator. (5) Telecommunications — fibre optic connectivity, often through a designated telecoms provider. (6) Waste management — industrial waste collection and disposal, which must comply with NESREA environmental regulations. Service charges for these utilities are typically expressed as a fixed monthly fee per square metre of occupied space, plus metered consumption charges for electricity and water.
This template is provided for informational purposes only and does not constitute legal advice. Laws vary by jurisdiction and change over time. Consult a qualified attorney for advice specific to your situation.Full disclaimer
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