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Do You Have a Buy-Sell Agreement? Why Every Nigerian Partnership Needs One

A buy-sell agreement sets out what happens to an owner’s interest after death, disability, retirement or another trigger. Insurance can help fund the purchase but does not create the agreement.

What to check

Agree valuation, triggers, buyers, payment mechanics, policy ownership, beneficiary structure, tax treatment and what happens if cover is insufficient.

What could change the answer

Without legal drafting, a policy payout can go to the wrong party or fail to complete the share transfer. Company documents must also align.

A practical next step

Ask a Nigerian corporate lawyer to review the shareholder documents first, then structure insurance around the signed agreement.

Reviewed 2026-09-09