The National Universities Commission (NUC) is the statutory body responsible for regulating the process of establishing private universities in Nigeria. Its authority is derived from the National Universities Commission Act of 1974 and the Education (National Minimum Standards and Establishment of Institutions) Act of 1993 (as amended).
Additionally, the Companies and Allied Matters Act (CAMA) 2020 governs the incorporation of various entities in Nigeria. While all higher education institutions must be registered under CAMA, a private university can only commence operations after obtaining a license from the Federal Government through the NUC and the Federal Executive Council.
Starting and operating a private university in Nigeria can be rewarding and highly profitable. However, it also presents unique challenges that must be effectively addressed to ensure the success of the institution. Individuals or organizations seeking to establish a private university in Nigeria must comply with the stipulated requirements to secure the necessary operating license.
This article provides a guide to the step-by-step procedures for establishing a private university in Nigeria. By the end of this guide, you will be well prepared to establish your own private university in Nigeria.
Prepare a Private University Business Plan
A proposed institution must have a clearly defined master plan for infrastructural and program development spanning 20 to 25 years. This plan should ensure adequate provision for planned space, aesthetic beauty, and fixed final assets.
The institution should secure a minimum land area of 100 hectares for a university, 50 hectares for a polytechnic and 25 hectares for a college of education, situated in a conducive location. The chosen site should also consider its distance from urban complexes and the availability of essential municipal services such as water, transportation, private accommodation, and communication facilities to meet the needs of the community.
The institution must maintain an inclusive environment that welcomes Nigerians regardless of ethnic origin, social status, religious beliefs, or political affiliations. Its laws and policies must align with conventional academic responsibilities while upholding the traditional autonomy of academic institutions.
To address potential challenges associated with municipal facilities, the institution should establish a clear policy for student and staff accommodation as well as catering services. This proactive approach will ensure that the institution provides a supportive and well-equipped environment for its stakeholders.
How to Start a Private University- Step-by-Step Guide
Starting a private university in Nigeria can seem like a daunting and expensive process, but it doesn’t have to be. We advise that you engage a lawyer to help you through the process of achieving a favorable outcome. That way, you can be rest assured that no mistakes are made and you comply with all the requirements.
The process of establishing a private university in Nigeria is in two stages: Registration with the Corporate Affairs Commission and Registration with the National University Commission.
1. Register with the Corporate Affairs Commission
The process begins by registering the proposed university with the Corporate Affairs Commission. Under the Companies and Allied Matters Act (CAMA), all businesses are required to be registered with the Corporate Affairs Commission (CAC). The promoters of the proposed university must first register the institution with the CAC.
Section 26 of CAMA outlines the category under which a private university should be registered. It states that “Where a company is to be formed for the promotion of commerce, art, science, religion, sports, culture, education, research, charity, or other similar objects, and the income and property of the company are to be applied solely towards the promotion of its objects and no portion thereof is to be paid or transferred directly to the members of the company except as permitted by this Act, the company shall not be registered as a company limited by shares but may be registered as a company limited by guarantee”.
A private university may also be registered as a private limited liability company if it is intended to operate for profit by its owners. Alternatively, it can be incorporated as an entity through incorporated trustees, commonly known as a non-governmental organization (NGO).
2. Registration With the National University Commission
The National University Commission as empowered by the Education (National Minimum Standards and Establishment of Institutions) Act of 1993 (as amended) provides for the following steps to be complied with in opening a private university in Nigeria:
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Application of Intent
Submit a written application to the NUC Executive Secretary, stating the intent to establish a private university. Include the proposed university’s name, location, mission, vision, nature, and niche focus within the Nigerian university system.
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Interview with Promoters
The NUC will conduct an interview with the university promoters to assess their seriousness and commitment.
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Issuance of Application Forms
After the application is reviewed, individuals or corporate bodies wishing to establish a private university must send a representative to the Commission to make the prescribed payment of a non-refundable application fee and collect ten (10) application forms in person. Along with the forms, copies of the guidelines and other necessary requirements will be provided for guidance. Any additional clarifications will also be addressed as needed.
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Submission of Application Forms and Documents
Complete the forms and submit them with a processing fee of N5,000,000, along with key documents such as:
- Draft academic brief and physical masterplan
- Draft university law
- Certificate of incorporation/registration (accompanied with the Articles and Memorandum of Association);
- Deed of assignment or certificate of occupancy
- Letter of Available Liquid Cash; and
- Bank Guarantee of Funds to the tune of N200 Million from a reputable Bank.
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Interactive Session with SCOPU
The Standing Committee on Private Universities (SCOPU) invites the members of the Planning & Implementation Committee of the proposed university to the NUC for an interactive meeting, which serves as a first verification visit to the university’s campus site.
During this meeting, the documentation process and other governance-related matters are discussed, with various issues being clarified. The meeting also provides the proposed university with an opportunity to engage with the Executive Secretary/Chief Executive of NUC and the Management team, receiving advice and encouragement.
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Full Submission of Documents
Promoters must submit all remaining documents, including the finalized academic brief and master plan.
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Review of Documents
Once the completed application forms and relevant documents are submitted, they are sent to the professional departments of the NUC for review. After analysis, the departments provide their comments and observations, which are then forwarded to the Committee for further transmission to the proposed university.
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First Verification Visit
SCOPU conducts a verification visit to the proposed university to review the documents with the promoters on a one-on-one basis and assess the preparedness in terms of documentation. During this visit, the physical facilities are inspected to determine if they are suitable for the proposed University in the first phase.
Additionally, courtesy visits are made to government agencies providing essential infrastructure such as electricity, water, and telecommunications, as well as to the local traditional rulers and government offices in the area where the university is to be located. These visits aim to gain the support of the host community and inform them about the university proposal. This step is crucial as it helps determine the proprietor’s commitment to the project and serves as a prerequisite for the final verification visit.
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Revision of Documents and Facilities
Promoters revise documents and improve facilities based on feedback from the first visit. Progress is reviewed before scheduling a final verification visit.
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Second and Final Verification Visit
SCOPU conducts a final review of documents, physical facilities, and financial evidence to ensure compliance with NUC standards. The financial expert on the committee examines and analyzes the evidence of available liquid cash documents. Additionally, the Bank Guarantee of Funds amounting to N200 million is reviewed, along with other legal documents, before being submitted to the NUC. A final inspection of the physical facilities is also conducted to ensure they meet the approved NUC standards.
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Security Screening
Promoters and board members undergo a security screening to verify their credibility and character.
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SCOPU Grading and NUC Approval
SCOPU submits a detailed report with scores to NUC management for review. Approved proposals are forwarded to the University Development Committee and later to the Federal Government for final approval.
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Federal Executive Council Approval
If approved, the Federal Executive Council grants a three-year provisional license. A substantive license is issued after satisfactory performance during the probationary period. This process ensures thorough vetting and compliance with NUC standards before a private university can commence operations.
Register a Private University by Engaging a Law Firm Today!
Registering a private university in Nigeria involves a detailed and structured process that requires careful planning, documentation, and compliance with the relevant laws and regulations. A proposed university must adhere to rigorous standards, including site selection, infrastructure planning, and faculty recruitment, to ensure the institution’s success and sustainability.
The NUC plays a crucial role in this process, conducting verification visits and assessing the readiness of the university in terms of academic standards, legal frameworks, financial capacity, and physical infrastructure. Throughout the process, collaboration with government agencies, local communities, and stakeholders is important to gaining the necessary support for the project.
In conclusion, while the process of registering a private university in Nigeria is complex and stressful, we can help you ease the process through careful planning and adherence to legal guidelines. Our experience and expertise will help you establish a successful educational institution. Therefore, reach out to our team of experts at Resolution Law Firm to begin the process today.