Sample Business Plan for Security Service Company in Nigeria

In this sample business plan on security services’ company in Nigeria, we are looking at the opportunity available to capable companies for providing security services such as; monitoring, personal protection services, armed escort services to name a few. A Security services company is any business that provides protection and security threats management services to individuals and companies alike. In Nigeria, there is a huge problem of insecurity and it cuts across all segments and locations of society.

Introduction

There are so many problems individuals and businesses suffer in the hands of security threats. For instance, it is difficult to produce goods in a factory if street urchins can invade the factory premises and chase away all the workers or for community youths to disrupt a business from carrying out its legitimate extraction/exploration or development projects over settlement issues. These are very common problems which businesses face everyday in all parts of the country.

It doesn’t end there. Private individuals are always under threats of home invasions, car-jacking, kidnapping, arson, rape and burglary to name a few. People hire vigilantes to protect their neighbourhoods against thieves and kidnappers. The government needs security services too. People vandalize government assets and threaten peace and stability over large territories such as with Boko Haram and vandals. Other forms of security services such as guard services are also demanded for by governments.

Insecurity stems from social problems such as; social inequalities, underdevelopment, illiteracy, poverty, corruption, social exclusion and many other factors. While every society has its fair share of insecurity, in Nigeria it is quite alarming to such an extent that most western countries issue travel warnings to their citizens about non-essential visits to Nigeria.

The manner in which Nigeria is portrayed as a hotbed of insecurity will discourage tourists and foreign investors from visiting Nigeria or even doing business in Nigeria. That is at the macro level. At the micro level, many businesses suffer from violent crimes and cyber-crimes especially in the very busy cities and towns

The Market Opportunity for Security Services in Nigeria

Nigerians spent over 800 billion naira on security services in 2019. Most of those expenses was paid by large corporate organisations such as; banks, hotels, oil companies, telecoms companies, transportation services, multinational corporations, residential estates, factories, farms, government agencies to name a few.

List of security services in demand

•          Armed Security Escort service
•          Guard services
•          Access control and management
•          Premise safety, monitoring and evaluation
•          Screening and access control
•          Threats Analysis and Assessments

Market size at a glance

•          The middle class and upper class are often the targets of most security threats
•          At least 8 million families and higher number of local residents are in need of different protection services within major towns and cities.
•          More than 30,000 businesses and government agencies need security guards to restrict unauthorized access to their premises
•          People rely heavily on informal security arrangements such as; OPC, local hunters, retired soldiers, willing able bodied youths, bouncers and volunteers
•          There is need for trained security personnel to guard and protect VIPs, social events (weddings, parties, concerts etc)  
•          Companies pay as between 50,000 and 100,000 per security guard deployed for guard duty (depending the security company and kind of service provided)
•          A security company with modest number (20 to 100) of staff can expect to generate impressive revenues based on large fees and medium sized clientele

List of possible security service clients

•          Hotels
•          Schools (boarding schools, universities)
•          Banks
•          Churches
•          Government buildings
•          Private residences (highbrow parts of the city)
•          Residential estates
•          Airports
•          Markets
•          Shopping malls
•          Farms
•          Car dealerships
•          Politicians
•          Clergy men
•          Embassies

Challenges of Security Services in Nigeria

One of the noticeable challenges of providing security services in Nigeria is the restriction of use of fire arms. Private security companies are not permitted by Nigerian laws to carry guns, which mean they cannot provide armed protection services. Secondly, there is the challenge of rapid response from armed security services to distress calls so that even if security companies can adequately manage a distress situation, an armed response to neutralize the threat cannot be counted on. Thirdly the low level of awareness about corporate security services from the local market creates difficulty in growing the industry and supporting innovative services and products that will improve overall security.

Startup Costs

Item	Cost
Rent (3 bedroom flat office space)	960,000
Office Furniture	600,000
Electronic devices (CCTV monitoring system	500,000
Security gadgets (batons, tactical non-lethal weapons, stun guns, walkie talkies etc)	1,000,000
ICT (4 desktop PCs and cloud system, SaaS software etc)	300,000
Salaries (6 months for 4 personnel)	1,200,000
4 Security Dogs, uniforms and other accessories	500,000
2 Operational vehicles for patrol and marketing	5,000,000
Other expenses	1,800,000
Contingency	1,200,000
Total	12,060,000

Financial Projection

This projection is based on an assumption of 50,000 naira per security guard paid for hiring 30 security guards in a security services firm serving the Abuja market.    

Item	Cost
Gross revenue	18,000,000
Cost of sales	900,000
Operating expenses	12,600,000
Profit before tax	4,500,000
Profit after tax	1,350,000
Retained earnings	3,150,000
Breakeven point	9th month
Payback period	4 to 5 years
ROI	24%

Paul Onwueme is a professional Business Plan writer since February 2014, has achieved respectable results with his business plan writing service with several of his clients securing funding and leaving positive feedback about his writing service. You can connect with him via phone: 0803 206 4106 or email: paulonwueme@gmail.com