With the current state of the economy in Nigeria, many persons (including civil/public servants) currently see the need to create an additional means of income for themselves, and in some cases, there is an urgent need to set up structures for such businesses while maintaining their employment as either employees of private organisations or civil servants.
Our concern today however is as regards civil servants. Can they take up positions as directors of a private company in the course of employment?
Please note, a civil servant and a Public Servant are the same. Part 2 of the Fifth Schedule of the 1999 Constitution of the Federal Republic of Nigeria defines a public servant to include; Chairman, members and Staffs of Local Government Councils, Chairman and members of Boards of other governing bodies and staff of statutory corporations and of companies in which the Federal or State Government has controlling interest, etc.
As regards the issue at hand, Sections 1, 2 and 4, Part 1 of the Fifth Schedule of the Constitution of the Federal Republic of Nigeria, provides a clear answer to the question in issue.
Specifically, Section 2 states;
“Without prejudice to the generality of the foregoing paragraph, a public officer shall not-
(a) receive or be paid the emoluments of any public office at the same time as he receives or is paid the emoluments of any other public office; or
(b) EXCEPT WHERE HE IS NOT EMPLOYED ON FULL TIME BASIS, ENGAGE OR PARTICIPATE IN THE MANAGEMENT OR RUNNING OF ANY PRIVATE BUSINESS, PROFESSION OR TRADE but nothing in this sub- paragraph shall prevent a public officer from engaging in farming”
(emphasis mine)
From the above, it goes without saying that only civil/public servants who are employed on a part-time basis may lawfully engage or participate in the management or running of a private business which may require assuming a role as director of a private company. This makes a lot of sense as without doubt, taking on responsibility as director of any company requires a great measure of commitment and focus.
CAN A CIVIL SERVANT BE APPOINTED AS DIRECTOR OF A PRIVATE COMPANY UPON RETIREMENT?
Section 4, Part 1 of the Fifth Schedule addresses this concern. It states;
“A public officer shall not, after his retirement from public service and while receiving pension from public funds, accept more than one remunerative position as chairman, director or employee of-
(a) a company owned or controlled by the government; or
(b) any public authority.”
From the above provision, it goes without saying that a retired civil/public servant can only accept more than one remunerative positions as director of a private company.
SUMMARY
Only civil servant employed on a part time basis are permitted by law to engage in or participate in the running of a private business as directors of a private company.
However, civil servants employed on a full time basis can take on the role as director of a private company (s) only upon retirement.
The can only engage in farming as a private business venture while fully employed in the civil service.
CONCLUSION
The civil service is regulated by a code of conduct, as such civil servants must take serious note of the scope of their limitations as regards undertaking private business activities while in employment.
Do you have questions? Please leave them in the comment section. We love to hear from you.
Abb Zanna
Can a public officer own controlling shares of a private company without being the director?
Cynthia Tishion
Yes Abb Zanna, a public officer may own controlling shares of a private company without being a director. A shareholder need not be involved in the management and daily operations of a company, which is the responsibility of a director. Remember, the reason behind the law restriction on public servants is to avoid situations where such public servant is divided in his commitment to his administrative responsibilities to the Government (i.e his primary employer) as a public officer.
Edet Ubaha
Please, is there no difference between executive director and non-executive director with regards to this provisions of the law?
Cynthia Tishion
From the relevant provision cited, we believe that the intent of the law in issue makes it applicable to both executive and non executive directors. Ultimately, its for a competent court of law to interpret the provision where the needs arises. Otherwise, the law is clear.
Engr Abdulaziz Mayo
You have clear my doubt about this issue of being Shareholders in a company without being In their board of Directors. Thank you so much
Cynthia Tishion
It's my pleasure Engr Abdlaziz.
Susan
Can a Civil servant be a director of a catering services business in Nigeria?
Cynthia Tishion
Hello Susan, is the catering service business registered as a company (not business name) in Nigeria? If the answer is Yes, then a full time civil servant cannot be a director of such registered company that offers catering services in Nigeria. Except such civil servant has been employed as a civil servant on a part time basis.
Ahmed Umar Ambursa
1. Since farming activities is allowed what about sells of agricultural inputs and livestock production inputs 2. Does this provision allows doctors to go on private practice or rendering services to private hospital on part time basis?
Tope
Can a civil servant register a business name?
Ngozi Ezeonu
Can a civil servant register an NGO in Nigeria
Cynthia Tishion
Yes, a civil servant can register an NGO in Nigeria.
Ifeoma
I just found out that a sole proprietor can now establish a limited liability company.. Is a public servant allowed to establish such considering it's almost same as a business name only with the advantage of being a different entity from the owner?
Cynthia Tishion
Hello Ifeoma, a civil servant employed on a full time basis cannot be a director of a company even if he or she incorporates such company as a sole director or shareholder of such company. If you need further clarification on this, you reach out to us by sending a mail to info@lexpraxisng.com.
Yahaya Isah
Can a a civul servant do a private business such as opening a provision store?
Cynthia Tishion
Hello Mr Yahaya, a civil servant employed on a full time basis cannot be a director of a company whose business activities entails operating a provision store. However, owning a private business as a registered business name instead of a company, might be a more preferred option as this option does'nt make provision for directors.
Kazeem Oyewole
Sir, can a civil servant be appointed a Non-Executive Director of a registered company?
Cynthia Tishion
Hello Mr Kazeem, a civil servant appointed to work on a full time basis, should not be appointed as a Non-Executive Director of a registered company. The role of a non-executive director implies being responsible for the day to day operations of a company and this attract conflict of interest between his office as a public servant and that of the company. I'm sure you'll agree with me that such situation defeats the intention of the law, which is to encourage commitment of public servants, especially those in full time employment to their duties.
Sylva
Can a public servant run an agric business since it's in line with farming
Cynthia Tishion
Hello Mr Sylva, a full time public servant may operate an agric business so long as it's within the scope of farming as permitted by law.
Dauda Adamu
Can a wife of a Civil servant be a director of her company
Cynthia Tishion
Hello Dauda Adamu, in response to your question, Yes. A wife of a civil servant can be a director of her company so long as she isn't a civil servant herself.
Keturah
Can children (less than 20 years) of a civil servant be Directors of a family company.
Cynthia Tishion
Yes Keturah, a child less than 20 years old can be a director of a company provided he /she is registered with one or two adults as co-directors of the company.
Gideon
Hi can a civil servant be a director of an NGO?
Cynthia Tishion
Yes Gideon, a civil servant can be a trustee or hold any position in an NGO
OkeyGod
Can a civil servant be Board of trustee in an NGO
Cynthia Tishion
Hello OkeyGod, a civil servant can be a member of a board of trustees.
Terimoh Yinkore
Hello sir, can a civil servants engage in contract execution
Cynthia Tishion
Hi Terimoh, contract execution simply signing a contract. SO, yes a civil servant can execute a contract. But if you refer to lobbying for general contracts, the question within the context of my write up would be; in what capacity is such civil servant executing such contract? If he/she is a full time civil servant, he/she cannot execute a contract in a capacity as a registered director of a company. If he/she is a part time civil servant, such person may execute a contract. The point here is that a civil servant under full time employment isn't permitted to engage in activities that would frustrate his responsibilities as a civil servant and beign a director of a company may do just that.
Rufai Abdullahi
I am working with a state Government institutions and my brother registered an NGO, he offered me a position in the steering committee. Is it legal for me to accept it? Thank you.
Cynthia Tishion
Mr Rufai Abdullahi, i've addressed a similar question. You may also read the answers to the previous question for guidance. Thank you.
Murtala Abubakar
Hello! I am a civil servant and i want to know if i can serve on the board of an agro-processing company that does backward integration i.e from farm to fork. Thanks
Cynthia Tishion
The answer to your question depends on the following; 1. As a civil servant, are you employed on a full time basis? 2. Does the agro-processing venture in question qualify as farming? Only civil servants employed on a part time basis may serve as director in another organisation. For a civil servant employed on a full time basis, the only private business activity he/she is allowed to carry out is farming. Unfortunately, the law doesn't describe the scope of farming approved by law. But its safe to say that the law would take into consideration recent technological developments associated with farming.
Victor
If you resign a a full time civil servant, can you take up the position of a Director in a Company
Cynthia Tishion
Hello Mr Victor, Yes you can take up a position as director of a company so long as you resigned from office not retired.
Moet
As a media personnel working full time with the federal government as a civil servant, please can i still engage in anchoring shows on Radio and Television?
Cynthia Tishion
Hello Moet, since the new job doesn't relate to taking on a role as director of a company, the answer to this depends on the contract of employment from your employer.
Stephen
i am a civil servant and i intend to register a private company " agro investment".what is the implication pls
Johnson
As a public servant in full time employment Can I take a part time teaching Job to improve my earning?
Anyam Mvendaga
Can a civil servant be a signatory to a company account?
Chidi
Hi Cynthia, you said earlier that civil servants can register an NGO in nigeria . Please what law backs up this aspect as I might need to cite it in future?
Hassan Lawal
I am a full time civil servant and my questions are as follows. 1) Can I take the position of a majority share holder in a private company? 2) Can I own or co-own a business name (not company) with a friend? 3) As regards farming, would a full time civil servant register farming with the CAC as a company or just a business name.
Yahaya
Can a civil service be a chairman/CEO of a private Limited company, just to supervise the activities of his company and appoint managing Director to over see the daily Bussiness of the company
Nkem Ezewulu
As a civil servant a lawyer and a professional in my field. Can I register a company as a director in my name?
Joannah
Can a civil servant take up active role as a company secretary in a private company?
Muhammad
As a public servant can own a large plantation farm or animal farm that makes profit?
Mashood Salman
Hello, is it illegal for a full term Civil Servant to run a small scale business where he partners with others to carry out the activity of the business on his behalf while he joins them to supervise and monitor their activities after the close of work and during weekends.
Abba
Hello, can a civil servant be a proprietor or own a trademark? Simply, can a civil servant trademark his design and franchise it other companies?
Cynthia Tishion
Hello Mr Abba, a civil servant can register a trademark as an individual.
Aminu
It means a civil servant can own a private business as long as he is not the person running the business
Cynthia Tishion
To an extent, Yes Mr Aminu.
Aminu
From the above, it means a civil servant can own a private business as long as he is not the person running the business. Am I right?
Joey
Can a public servant lawyer be a partner in a law firm without being involved in the management of the firm?
Aisha
I am a civil servant and have been participating in NGO works which is not related to my job and on personal invitation. Is this accepted in civil service? Can I set up my NGO while in active service on full time?
Stefan Robert
Hi Mr Abba, a government employee can enroll a brand name as a person. This is my website https://alldiscounts.ng/
Wasem Bright Agbatse
Weldone for the answers , they were helpful
Cynthia Tishion
I'm glad you found them useful Mr Bright.
Aimie
Hi. If I opened a hospital and registered it in 2017. Then get appointment with the government in 2021. What options do I have to keep the hospital running as it can’t just be shut down seeing it’s benefiting lives in the community already.
Cynthia Tishion
Hello Aimie, please send a message to info@lexpraxisng.com or click this link https://lexpraxisng.com/appointment-booking/ to schedule an appointment. We look forward to hearing from you.
Robinson
Good evening sir. Please, can a public servant be a sole proprietor (i.e business name)? Thanks
Mansur Ibrahim Kagara
Can a civil service be a chairman/CEO of a private Limited company, just to supervise the activities of his company and appoint managing Director to over see the daily Bussiness of the company
Osita
Can a serving police officer be a director in a security company, if no, are there exception other than those as it relates to agriculture under the civil service rules ?
Mr. Hman Luvent
Is a civil servant allowed to incorporate an LLC as a director without running the business may be for future purpose?
Thama
Thank you for the post and responses to the comments. It was helpful to all my questions.
Cynthia Tishion
We are glad you found it useful Thama.
Stephen
i am a civil servant and i intend to register a private company " agro investment".what is the implication pls
Cynthia Tishion
Hello Stephen, I recommend you schedule a meeting so we discuss the implications and come up with how best to structure your company in view of your present situation. Please give us a call on any of the numbers on our website and we would attend to you.
Yahaya
@CYNTHIA TISHION As a civil servant and trusted to be a signatory of family company and farming is part of memorandum of association is this legal
Olakanmi
Please, as a civil servant, can you have a farm registered as Ltd company? If not what are the options available?
Cynthia Tishion
Yes Olakanmi, with proper structuring, a civil servant can have a farm registered as a limited liability company.
Emma
Please, can a public servant(President, Governors, etc) acquire properties while in office
Cynthia Tishion
Hello Mr Emma, a public servant can acquire properties while in office. But She or She is required to disclose the source of income or funds used in acquiring such assets.
Hikmat
I'd really appreciate a reply to this one. I'm in a dilemma as to this.
Cynthia Tishion
Hello Hikmat, I believe the article has clearly answered the question. We've also taken time to respond to questions in the comments. If you believe you are yet to get the answers you seek, I'll suggest you ask your question so we can provide a direct response.
Lady B
As acivil servant can I register a farm as a private limited company.
Cynthia Tishion
Hello Lady B. Farming is a broad nature of business. There is a whole lot to consider to avoid acting outside the scope that the law permits. I recommend you get proper legal advice to help you arrive at what will work best for your entrepreneurial goals as a civil servant. You may schedule an appointment through this link https://lexpraxisng.com/appointment-booking/ and we'll get you sorted.
Aliyu
Please, can civil servant serve as a non participant Director in a registered Mining Company?
Cynthia Tishion
The constitution is clear on this. A civil servant cannot serve as a director of a company.
Oliver Esq.
Very useful write up and response to comment/questions. Good One Learned Colleague.
Cynthia Tishion
Thanks Mr Oliver