CAN A CIVIL SERVANT BE A DIRECTOR OF A COMPANY IN NIGERIA?

By Cynthia Tishion
August 27, 2020
81 Comments

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 ZannaFebruary 6, 2021
Can a public officer own controlling shares of a private company without being the director?
1. Cynthia TishionLexPraxisFebruary 6, 2021
  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.
SusanFebruary 11, 2021
Can a Civil servant be a director of a catering services business in Nigeria?
1. Cynthia TishionLexPraxisFebruary 11, 2021
  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.
Ngozi ezeonuFebruary 11, 2021
Can a civil servant register an NGO in Nigeria
1. Cynthia TishionLexPraxisFebruary 12, 2021
  Yes, a civil servant can register an NGO in Nigeria.
IfeomaMarch 23, 2021
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?
1. Cynthia TishionLexPraxisMarch 26, 2021
  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 IsahMarch 25, 2021
Can a a civul servant do a private business such as opening a provision store?
1. Cynthia TishionLexPraxisMarch 26, 2021
  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 OyewoleApril 15, 2021
Sir, can a civil servant be appointed a Non-Executive Director of a registered company?
1. Cynthia TishionLexPraxisApril 23, 2021
  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.
SylvaApril 19, 2021
Can a public servant run an agric business since it’s in line with farming
1. Cynthia TishionLexPraxisApril 23, 2021
  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 adamuApril 23, 2021
Can a wife of a Civil servant be a director of her company
1. Cynthia TishionLexPraxisApril 23, 2021
  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.
KeturahApril 30, 2021
Can children (less than 20 years) of a civil servant be Directors of a family company.
1. Cynthia TishionLexPraxisJune 7, 2021
  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.
GideonMay 16, 2021
Hi can a civil servant be a director of an NGO?
1. Cynthia TishionLexPraxisJune 7, 2021
  Yes Gideon, a civil servant can be a trustee or hold any position in an NGO
OkeyGodJune 8, 2021
Can a civil servant be Board of trustee in an NGO
1. Cynthia TishionLexPraxisJune 28, 2021
  Hello OkeyGod, a civil servant can be a member of a board of trustees.
Terimoh YinkoreJune 28, 2021
Hello sir, can a civil servants engage in contract execution
1. Cynthia TishionLexPraxisJune 28, 2021
  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 AbdullahiJuly 9, 2021
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.
1. Cynthia TishionLexPraxisJuly 9, 2021
  Mr Rufai Abdullahi, i’ve addressed a similar question. You may also read the answers to the previous question for guidance. Thank you.
Murtala AbubakarJuly 18, 2021
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
1. Cynthia TishionLexPraxisJuly 26, 2021
  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.
victorJuly 20, 2021
If you resign a a full time civil servant, can you take up the position of a Director in a Company
1. Cynthia TishionLexPraxisJuly 26, 2021
  Hello Mr Victor, Yes you can take up a position as director of a company so long as you resigned from office not retired.
MoetJuly 23, 2021
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?
1. Cynthia TishionLexPraxisJuly 26, 2021
  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.
2. stephenJune 24, 2022
  i am a civil servant and i intend to register a private company ” agro investment”.what is the implication pls
JohnsonAugust 18, 2021
As a public servant in full time employment
Can I take a part time teaching Job to improve my earning?
Anyam MvendagaSeptember 8, 2021
Can a civil servant be a signatory to a company account?
ChidiSeptember 18, 2021
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 LawalSeptember 22, 2021
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.
1. YahayaJuly 5, 2022
  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 EzewuluSeptember 24, 2021
As a civil servant a lawyer and a professional in my field. Can I register a company as a director in my name?
JoannahOctober 2, 2021
Can a civil servant take up active role as a company secretary in a private company?
MuhammadOctober 31, 2021
As a public servant can own a large plantation farm or animal farm that makes profit?
Mashood SalmanNovember 25, 2021
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.
AbbaDecember 11, 2021
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?
1. Cynthia TishionLexPraxisDecember 13, 2021
  Hello Mr Abba, a civil servant can register a trademark as an individual.
AminuDecember 14, 2021
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?
JoeyDecember 15, 2021
Can a public servant lawyer be a partner in a law firm without being involved in the management of the firm?
AishaDecember 18, 2021
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 RobertDecember 27, 2021
Hi Mr Abba, a government employee can enroll a brand name as a person.
This is my website https://alldiscounts.ng/
Wasem Bright AgbatseJanuary 21, 2022
Weldone for the answers , they were helpful
1. Cynthia TishionLexPraxisJanuary 21, 2022
  I’m glad you found them useful Mr Bright.
AimieFebruary 4, 2022
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.
1. Cynthia TishionLexPraxisFebruary 4, 2022
  Hello Aimie, please send a message to info@lexpraxisng.com or click this link http://lexpraxisng.com/appointment-booking/ to schedule an appointment. We look forward to hearing from you.
RobinsonFebruary 16, 2022
Good evening sir.
Please, can a public servant be a sole proprietor (i.e business name)?
Thanks
Mansur Ibrahim KagaraMarch 12, 2022
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
OsitaMarch 21, 2022
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 luventMay 17, 2022
Is a civil servant allowed to incorporate an LLC as a director without running the business may be for future purpose?
ThamaJune 3, 2022
Thank you for the post and responses to the comments. It was helpful to all my questions.
1. Cynthia TishionLexPraxisJune 3, 2022
  We are glad you found it useful Thama.
stephenJune 24, 2022
i am a civil servant and i intend to register a private company ” agro investment”.what is the implication pls
1. Cynthia TishionLexPraxisJune 24, 2022
  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.
OlakanmiSeptember 2, 2022
Please, as a civil servant, can you have a farm registered as Ltd company? If not what are the options available?
1. Cynthia TishionLexPraxisOctober 10, 2022
  Yes Olakanmi, with proper structuring, a civil servant can have a farm registered as a limited liability company.
EmmaOctober 26, 2022
Please, can a public servant(President, Governors, etc) acquire properties while in office
1. Cynthia TishionLexPraxisOctober 28, 2022
  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.
Lady BNovember 7, 2022
As acivil servant can I register a farm as a private limited company.
1. Cynthia TishionLexPraxisNovember 10, 2022
  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 http://lexpraxisng.com/appointment-booking/ and we’ll get you sorted.
AliyuJuly 9, 2023
Please, can civil servant serve as a non participant Director in a registered Mining Company?
1. Cynthia TishionLexPraxisJuly 10, 2023
  The constitution is clear on this. A civil servant cannot serve as a director of a company.
Oliver Esq.October 2, 2023
Very useful write up and response to comment/questions.
Good One Learned Colleague.
1. Cynthia TishionLexPraxisOctober 2, 2023
  Thanks Mr Oliver

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CAN A CIVIL SERVANT BE A DIRECTOR OF A COMPANY IN NIGERIA?

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