Document background
The Construction Lease Agreement is utilized in Nigeria when a property owner wishes to grant both construction rights and leasehold interests to a tenant who will develop the property. This hybrid document is particularly relevant in commercial, industrial, and large-scale residential developments where the tenant requires specific building modifications or new construction to suit their needs. The agreement must navigate both federal and state-level requirements, including the Land Use Act, building codes, and environmental regulations. It typically includes detailed construction specifications, timelines, quality standards, and subsequent lease terms. The Construction Lease Agreement is especially important in Nigeria's developing real estate market, where build-to-suit arrangements are becoming increasingly common, particularly in urban centers and industrial zones.
