REGISTERING A PRIVATE SECURITY COMPANY IN NIGERIA

Security remains a vital part of human existence. It has been part of human conscious activities from time immemorial. It is common to notice a signpost with the inscription “beware of dogs” on-premises; this is a conscious way to keep aware intruders and miscreants from attempting to enter the premises. In ancient days, high walls were built to protect the territory of a nation with a security guard always keeping watch over the city both day and night.

Section 14 (2) b of the 1999 Constitution of Nigeria as amended states that; “The security and welfare of the people shall be the primary purpose of Government”

The government in turn sets up the Armed Forces units and other Paramilitary outfits to ensure that the lives and property of its citizenry are well protected.

However, these security agencies are created to provide security for the general public, with the power to carry weapons within their official capacity. Since these security agencies are not stationary guards for private citizens, the law allows individuals to set up private security outfits which will be strictly supervised, properly trained, and also giving a license to operate by the Nigeria Security and Civil Defense Corps (NSCDC) under the Ministry of Interior.

According to a report from the NSCDC, there are about one thousand, one hundred and ten (1,110) registered private security companies of which 828,502 people in Nigeria has been employed from the year 2013 to 2018.

Registration with Corporate Affairs Commission (CAC)

To operate as a security outfit company, one is expected to incorporate a limited liability company first with the Corporate Affairs Commission (CAC) with a minimum Share Capital of Ten Million Naira (N10,000,000.00).

Consultation with a corporate legal practitioner or an accredited agent within the commission is a step in the right direction when about to register a limited liability company.

The following documents and requirements would be needed for the registration;

1. Proposed names of the company (2 alternative names)
2. Proposed address of the company
3. Email address
4. Names of directors and other personal data such as; address, phone number, email addresses, date of birth, valid means of identification,
5. Name of secretary and other personal data as in director above
6. Names of shareholders, their respective shareholdings and other personal data as in director above.
7. Name and information of person with significant control as in director above.
8. Statutory and professional fees where an accredited agent is engaged to incorporate the company.

Note that a foreigner cannot be a director of a security company in Nigeria.

After due registration with the Corporate Affairs Commission, the company is required to get the necessary license from the authorizing agency and ministry.

Registration with Nigeria Security and Civil Defense Corps (NSCDC)

Section 1 Private Guard Companies Act CAP P30, LFN 2004: provides that the private security company must seek and obtain the license to operate.

Private guard companies to be licensed

• As from the commencement of this Act, no organization shall perform the service of watching, guarding, patrolling or carrying of money for the purpose of providing protection against crime unless the organization concerned.
• is registered as a company under or pursuant to the Companies and Allied Matters Act; and
• has applied for and has been granted a license by the Minister in accordance with the provisions of this Act.”

 Application for License

• An application for a license shall be made in writing through the licensing authority to the Minister in the manner and giving such particulars as specified in Form A in the Schedule to this Act.”

The NSCDC is charged with the responsibility of licensing, monitoring and the supervision of private securities companies in Nigeria according to Section 3 of the Nigeria Security and Civil Defense Corp Act No. 2 of 2003

The particulars in Form A in the First Schedule of the PGC Act and the requirement from the NSCDC are as follows;

• Application for private guard license addressed to the Commandant General
• CTC of Memorandum and Article of Association (2 copies)
• Photocopies of certificates of incorporation (2 copies)
• Payment of prescribed fees
• Tax clearance certificate
• Statement of account
• Letter from a legal adviser
• Letter from an auditor
• Proposed training program
• Proposed salary structure
• Veterinary certificate (optional)
• Personal History Statement (PHS) forms at One Hundred Thousand Naira (N100,000) only. All directors must obtain one.
• Credentials of directors (2 copies) to be attached with the PHS form.
• Letter from bankers
• Eight (8) passport photographs for each of the directors
• Eight (8) full photographs (postcard 5 x7 inches) of each of the directors with a white background, with five fingers print and signature signed at the back of the postcard (photograph) in the presence of Nigeria Security and Civil Defence Corps Officers.
• Photocopy of the signature page of the directors in the international passport or National ID Card or Driver’s License and this should be stapled at the back cover of the file jacket.
• PHS form must be adequately filled by the directors stating Nil or Not applicable to portions they do not have answers to and no column should be left unfilled.
• Attestation letters from referees for each directors
• One uniform sample with a photograph of a guard in Uniform (2 copies)
• Application fees are N500,000.00 (Five Hundred Thousand Naira) only, however upon approval and grant of license another fee would be prescribed for the Company to pay which would be depending on the category of the company.

The approval would be given by the supervising ministry upon satisfaction with the above requirement on the consideration of security and public interest.

Categories of Private Security Company

 They are two categories of Security Company

1. Category A: Under this category, the company can have more than 3,000 guards. The License fee is N3,000,000 (Three Million Naira only).
2. Category B:Under this category, the company cannot have more than 3,000 guards. The License fee is N2,000,000 (Two Million Naira only).

The services of private security outfits and continuous impact and economic impact cannot be underestimated in recent times. Almost all organized estate, schools, hospitals, banks, industries, plazas and shopping complexes engage the services of private security outfits. It is indeed a profitable business venture, competitive and self-sustenance for one to venture into.

This article is a general guide on the above subject matter and not a piece of legal advice, however, If you wish to register a Private Security Company or have any inquiries on the formation, operation, renewal of license for a Private Security Company you can engage our legal practitioner or contact us via our email and we would be glad to give our best professional services.