Private Guard Companies are engaged mainly in the provision of security guard services for private individuals and companies and are in fact subject to a wide range of regulatory provisions.
Private guard services have proven to be one of the fastest rising business niches in Nigeria, prompting the need for more detailed regulatory oversight.
This article will be looking at how to set up a licensed private guard company in Nigeria and provisions of the regulatory framework governing such companies in Nigeria.
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Can any individual or organisation engage in private guard services in Nigeria?
No individual or organization shall perform the service or guarding, patrolling or carrying of money for the purpose of providing protection against crime unless the organization concerned :-
– Is a registered company.
– Has applied for & has been granted a license to do so.
Which agency is in charge of regulating private guard companies in Nigeria?
Private guard companies in Nigeria are licensed & regulated by the Federal Ministry of The Interior through the Nigerian Security & Civil Defence Corps (NSCDC).
What is the nature of licenses given to private guard companies in Nigeria?
– Private guard company licensing is valid for 2 years from the date of issue before requiring renewal.
– Any such license shall specify the number of offices, branches or other places of business which the company is permitted to maintain.
– A license may be suspended or revoked by the interior minister at any time he is satisfied that such company is unsuitable to hold such license.
How many directors are required for private guard companies in Nigeria?
Private guard companies are required to have 3 (Three) directors, one of who should be a retired military or paramilitary personnel from the rank of major or commissioner.
How many foreign directors are allowed for private guard companies in Nigeria?
Foreigners are not permitted to be directors in Nigerian private guard companies.
What is the minimum share capital for private guard companies in Nigeria?
Private guard companies are required to have a minimum share capital of 10 Million Naira.
What are the requirements for private guard company licensing in Nigeria?
– An application to the NSCDC.
– Copies of the applicant company’s Certificate of Incorporation and Memorandum and Articles of Association (MEMART).
– A Letter from a legal adviser.
– A letter from the applicant’s bankers and auditors.
– A proposed guard training program.
– A proposed salary structure.
– Veterinary certificates (where animals such as dogs are to be employed by the company).
– Eight (8) passport photos of each director.
– An application fee of 500 Thousand Naira.
– Tax clearance certificate.
What are the license categories for private guard companies in Nigeria?
Category A
– This license allows for having more than 3,000 guards
– Carries a license fee of 3 Million Naira
Category B
– This license category allows for the employment of no more than 3,000 guards.
– Carries a license fee of 2 Million Naira.
What are the activities classified as prohibited for private guard companies?
– Acting as debt collectors.
– Acting as police officers.
– Using the expression “private detective”
– Divulging confidential information acquired in the course of employment under this act.
– Using or deploying guards wearing uniforms resembling those of military or paramilitary personnel of Nigeria.