Document background
The Preferred Vendor Agreement is a strategic commercial document used when an organization wishes to establish a formal preferential relationship with a supplier in Nigeria. This agreement is particularly valuable for businesses seeking to secure reliable supply chains, preferential pricing, and priority service levels. The document complies with Nigerian commercial law, including the Federal Competition and Consumer Protection Act and relevant procurement regulations. It typically includes detailed terms covering the nature of the preferred status, minimum purchase commitments (if any), pricing structures, service level requirements, and performance metrics. The agreement is especially useful in industries where consistent quality, reliable supply, and preferential treatment are crucial for business operations. Organizations should consider implementing a Preferred Vendor Agreement when they want to formalize a strategic supplier relationship while ensuring compliance with Nigerian legal requirements and protecting both parties' interests.
