Marine Security Business Plan in Nigeria
The problem of crime on the sea ways have been considerable ever since the beginning of time. However, Nigeria as a nation has been raising its maritime security strategy to address piracy and crime in its waters. Strengthening maritime domain awareness is always a top priority as the sea is one of the most important routes through which goods and services are transported. An important security issue which multilateral companies in Nigeria face face lies at sea. The security of the Gulf of Guinea which is vital to the economy of not only Nigeria but also of West Africa as a whole. The Gulf is the transit hub for much of the region’s $253 billion of commerce—most prominently petroleum products such as crude oil, asphalt, bitumen and so on. Yet, the Gulf of Guinea has also become a hotbed of piracy in recent years. In 2014, there were 41 incidents of crimes like hijacking, sabotage, robbery and kidnapping in the Gulf of Guinea.
Pirates harshly hijack and take over cargo from the many defenseless and isolated vessels traveling through the Gulf and also incidents involving kidnapping have increased. Piracy and maritime crime are more prominent in and around the territorial waters of Nigeria, West Africa’s top oil producer. Nigeria loses between 40,000 and 100,000 barrels of oil daily to thieves and hijackers which according to statistics cost Nigeria around N433 million Naira annually. Majority of pirates in the Gulf of Guinea originate from the militarized groups of Nigeria’s oil-producing Niger Delta region. In 2013 alone, a total of 1,951 illegal oil refineries were destroyed in the Niger Delta alone. These men in boat Groups with access to weapons and boats— ex-insurgents, local gangs—have advanced from stealing and hijacking oil in the inland waterways to hijacking cargo and tanker ships on the high seas.
However, The global maritime commons have remained a trusted medium for driving growth, financially and economically, development and prosperity between both landlocked and waterlocked nations in a long time now. African seaborne trade has also benefited from this growth coupled with attendant marine security challenges, notably within the Gulf of Guinea. Not neglecting to state the fact that emerging security occurrences within the Nigerian Marine domain is largely from non-military bodies or causes such as socio-economic problems and increase in the population of unemployed youths within the coastal communities. This is evident in the attacks on shipping and sabotage of hydrocarbon haulage. There are also numerous occurrences of illicit trafficking, illegal unreported and unregulated fishing and marine pollution. This problem made the Nigerian government initiate various programs such as loans and grants and operations geared towards creating a safe and secure marine space for commerce to thrive.
Nigeria has been developing its maritime security strategy to address piracy and crime in its waters which prompted introduction of the grants which will help creating marine security firms in order to minimize or put an end to these crimes which inhibit the economy of the nation, Nigeria. However, to access these grants, there is need to write a business plan which will convince those in charge to release these funds for proper utilization.
BUSINESS PLAN FOR MARINE SECURITY
Day Security is a startup security company founded by Dayo Adetiloye, an experienced former Nigerian Naval officer and security company manager. The business will provide security guards and personnel, security audits, and referrals to providers of equipment to haulage companies , oil tankers and vessels. The business seeks to acquire capital from government grant and will expand to more cities in the Niger Delta and over depending on how successful it is. In the current state of Nigerian seas, with increasing fears of crime involving thieves, sabotage and hijacking and the current economic climate, which promises an upturn in general and in services especially, this business is launching at the right time. The business will target oil companies and fish transport companies first in order to establish a strong base of clients in Nigeria.
Day Security will expand its employee base of security guards carefully, based on client contracts, and use both full-time and part-time security guards. The business expects reasonable sales in the first year, almost doubling by the end of the third year. Gross margins will be similar to the industry margins, depending on guard labor costs vs. billings. After the incipient investment and launch, a lean first year, and the establishment of an office and training space in the following year, the business will be pushed to expand through its own financing after three years. After the business is proved replicable and successful in additional cities, the business may be sold to create an exit point for the initial investor and founders.
Vision
To be among the top 5 maritime security in Nigeria.
Objectives
Day Security has the following objectives which will help the company achieve success in its operations:
- Employ full-time equivalent security guards by the end of the third year of operation
- Offshore oilfield security.
- Armed security escorts for mobile offshore platforms and ships.
- Harbor terminal security surveillance and maximum protection.
- Creating safe anchorages around the roadsteads and other authorized points within the channels.
- Community security services for companies with valuable facilities situated within riverine communities.
- Covert maritime intelligence operations, gathering and reporting to client’s security agency or relevant government agencies.
- Maximum security and protection of marine transportation of materials and crew to offshore platforms and locations.
- Search and rescue operations of staff.
- Port Facility and Ship Security Surveys/Audits and Assessments.
- Any other security demands tailored to meet client’s satisfaction.
Keys to Success
Day Security believes the keys to success in its industry include:
- Listening carefully to client most important concerns and objectives in order to work accordingly.
- Understanding what the client does not know with expertise and knowledge of legal regulations in the country.
- Training security guards according to specifications and maintaining their training and certifications
- Quality assurance
Mission
Day Security will reduce and totally eliminate problems for clients who require security guards for their vessels, facilities and staff by providing stellar customer service for clients and complete training for their employees.
Start-up Summary
Day Security will maintain a fleet of guard and combat ships, including four Quick intervention security vessels that can reach speeds of up to 25 knots and make pursuit with fast RIBs. Two of Day’s security quick intervention security vessels have been designed and built to the company’s specifications. The other two ships will be former navy patrol vessels with proven abilities in case of intense confrontations. The day’s fleet also includes two huge platform supply ships, anchor handling supply tugs, and minor vessels including construction barges and dredges.
The company will work in close conjunction with the Nigerian Navy and therefore will be allowed to field armed naval guards. Day Security will also maintain a clear communications network which allows for proper threat assessment and tracking. Also, the company will boast full search and recovery (SAR) capabilities and offers onshore (harbor) escort services to commercial vessels. Day Security will launch as a home-based business from the office of Dayo Adetiloye. Initially, this will obviously reduce the expenses of rent and equipment. Training for security guards will be carried out in temporarily rented office space as required. Other start-up costs are the costs of registration and permits, such as concealed weapons permits, business license, and legal clearance (legal fees), initial website design and brochure printing, insurance premium for the business, including liability insurance for the guard’s ops and carrying of firearms. Long-term assets include mobile phones and headsets for all guards and employees, as well as walkie-talkie for guards working as teams.
Requirements
Legal Fees- N6,000,000
Surety Bond- N450,000
Stationery- N700,000
Insurance- N4,000,000
Training – N2,000,000
Website- N800,000
Brochure- N600,000
Total Start-up Expenses- N14,550,000
Start-up Assets
Cash Required- N14,600,000
Long-term Assets- N365,000
Total Assets- N15,000,000
Total Requirements- N28,105,000
Services
Day Security will provide seasoned guards for one or more of the following purposes:
- To guard entrances and check guests
- To monitor clients’ premises with video surveillance equipment (CCTV cameras)
- To protect clients’ facilities and vessels.
- To deter crime with visual presence
- To organize swift response in the case of fire, evacuation, or other emergency
- To collaborate with the Navy and emergency response teams
- Security audits and recommendations for security plans
- Referrals to providers of security technology (camera systems, etc.)
Day security will be a licensed, insured and will offer armed and unarmed guards, depending on client needs and budgets. All guards will be cleared for security operations and to carry and utilize firearms. The same guards will be sent consistently to the same clients whenever possible. However, substitutes will be important from time to time and the business will ensure that accurate data about the job is transferred to substitute guards in those situations. Day Security will build trusted relationships with clients as a partner, rather than simply in the specific guard or guards they grow comfortable with.
Guards will keep in constant communication with their team through portable two-way radios and with the Day Security office, whenever necessary through mobile phones. The Day Security office will be not be staffed full-time at launch, but the CEO will always be within reach by phone wherever they work. Personnel who encounter any form of criminal activity will alert the authorities immediately instead of going through a communications center. Mobile Surveillance will be carried out on seas. This type of surveillance activity, the target is usually trained by the operatives assigned from one point to another observing his actions, operations, criminal associates or contracts his take – off points and destination. Mobile surveillance can be conducted on boats, speed boats, ships, vehicle depending on the state or nature of the target when the surveillance is being conducted. Aero plane, cars can also be used for surveillance to neutralize threats. Threat in maritime language can be termed as Statement of an intent to punish or hurt someone especially if he’s unwilling to comply to the wishes of criminals or sign of warning of causing trouble, danger etc or and seem likely to occur or come to being. Threat to life at sea can be something likely to happen or occur which may result into a breach of peace, if not stopped. Some of the threat to safety of life at sea are:a. Terrorism, Robberies, Piracy, Gun, Bunkering, Assassination, Vandalization and other acts of economic sabotage, air and sea port Pollution from oil spillage, War / unrest etc.
Guards will always be stationed at desks, or patrol on foot at all facilities like vessels and ships. It is however necessary for Clients to provide vehicles if their jobs require vehicle patrol (i.e., a facility with several buildings) to effectively stop threats from materializing.
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MANAGEMENT SUMMARY
Dayo Adetiloye, CEO, creates the vision and strategy of Day Security. He brings with him knowledge of the industry as an ex-Navy personnel and sales skill. Dayo will take responsibility for marketing, sales, and ongoing client service. He will also run training for guards.
Richard James, COO, will be in charge of the operations of the company. He will be in control of finances/accounting, hiring and human resources. Dayo has ten years of experience as assistant director of operations for security systems in the Nigerian Navy and therefore is familiar with operations management and the security industry.
Dayo and Reece will be the only full-time employees during the launch of the company. Security guards will be employed as client engagements are computed and will be accounted for as a cost of sales. In the second year, three administrative assistants will be employed to work under the COO and recruit staff for the office at all times for the purposes of dispatches and constant communications with guards on-site.
PERSONNEL PLAN
The personnel aspect shows the full-time office personnel of the business. Security guards will be a combination of full-time and part-time guards and will be recruited as sales improves. Guards will be employed either as daytime guards, night-shift guards, and part-time guards who take a part-time load of either evening or daytime work. A business office will be rented starting in year 2 when the administrative/call center assistants are assigned to provide 24 hour dispatch support.
Guards are employed after an independent background check is done and interviews with both managers of the business and also checks with three references. Employed guards will be qualified for health insurance and disability pay through the business to protect and treat them in the occurrence of injury on the job or other problems that may arise.
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