The aim of this work was to establish appropriate conditions for immobilising Candida rugosa lipase on a low-cost inorganic matrix, hydrous niobium oxide, using a multivariate statistical approach. A 2 full factorial design was employed to determine the effects of support activation with glutaraldehyde (concentration 2.5-4.5%, pH 7-10) and lipase loading (200-700 U g(-1) matrix) on the hydrolytic and synthetic activities of the immobilised derivatives. From the results the following conditions were established: lipase loading of 450 U g(-1) matrix and niobium oxide activation with glutaraldehyde at a concentration of 2.5% and pH 8. Under these conditions, high activity recovery (47.21%) and esterification yield (86.90%) were attained. The results also show that hydrous niobium oxide can be a valid alternative to replace high-cost, commercially available inorganic matrices such as controlled pore silica. (c) 2006 Society of Chemical Industry.