Nigeria - Safety and Security Nigeria - Safety and Security
Overview
|
|
2016 |
2017 |
2018 |
2019 (estimated) |
|
Total Market Size |
11,347 |
13,998 |
15,220 |
20,603 |
|
Total Local Production |
997 |
807 |
701 |
701 |
|
Total Exports |
0 |
0 |
1,016 |
1,200 |
|
Total Imports |
10,350 |
13,189 |
14,499 |
21,102 |
|
Imports from the U.S. |
7,270 |
5,286 |
7,500 |
12,098 |
|
Exchange Rate 1 USD: |
200 |
304 |
360 |
361 |
Total Market Size = (Total Local Production + Total Imports) – (Total Exports)
Data Sources:
Total Local Production: Nigeria Defense Academy (NDA)
Total Exports: National Bureau of Statistics Trade Data
Total Imports: Security Practitioners’ Association of Nigeria, Industry practitioners, Nigeria Bureau of Statistics
Imports from U.S: U.S. Census Bureau
Nigeria Bureau of Statistics
*Estimates based on qualitative research done via Industry contacts, local newspaper articles, and local security contacts.
With the increase in insurgency, terrorism, religious unrest, ethnic clashes, pipeline vandalism, cult clashes, kidnappings, and violent crime, there is an increased demand for high quality security equipment, training and services in Nigeria by security agencies tasked with the safety of lives and property. High volume buyers of security equipment include government, businesses and residential builders/owners. While the numbers above show only a marginal projected increase in U.S. exports and imports, given the nature of the sector the actual numbers are likely higher, but are not disclosed by many firms and the government. Sales of heavy military weaponry take place between the regulatory arms of governments of USA and Nigeria either through a Direct Commercial Sale (DCS) or Foreign Military Sale (FMS). To aid in its fight against insurgency, the Government of Nigeria recently released funds for the purchase of twelve Super Tucano aircraft from the U.S, Bell 412 helicopters, Tsaigunmi UAV and one Alpha Jet ferried in from the USA.
The Government of Nigeria has continued to reform its security agencies and is investing substantially to enable them to undertake covert and overt operations, including intelligence gathering. The Nigerian Air Force is looking to complement the futuristic plans for further investments in advanced weapons technologies, especially the manufacturing and deployment of Unmanned Aerial Vehicles otherwise known as drones. The Government of Nigeria recently approved the sum of $1 billion for the purchase of security equipment to aid in the fight of the Boko Haram insurgents and the Islamic State. The Nigerian security agencies are investing heavily in new age technology and other intelligent warfare equipment; biometric solutions, metal detectors, bomb and tracking devices, surveillance cameras and Close Circuit Television (CCTv) cameras, high range communication devices, body scanners, Unmanned Aerial Vehicles (UAVs) and drones, all of U.S. origin. Private individuals and private security agencies are also keyed into the need for additional safety and security and are procuring top of the range surveillance systems such as Overt and Covert CCTV cameras including nanny cameras, Smart Home solutions, Video enabled door bells, automated gate solutions, car trackers, etc. which provide an additional level of security. Despite the low cost of this equipment from China, Nigerian security agencies, private individuals and private security agencies realize that quality and dependable safety and security equipment can only be sourced from U.S. security contractors. The Government of Nigeria now places high priority on ICT training (cyber counterterrorism and cyber warfare), for its personnel to make them equipped for incidences that may occur through such means. This creates opportunities for U.S. security equipment manufacturers and contractors to increase revenue within the Nigerian Safety and Security sector.
Leading Sub-Sectors
U. S. companies now sell armored vehicles to high profile political office holders, private high net-worth individuals, and security service providers in Nigeria. Manufacturers of body scanners (fixed or mobile), CCTV cameras, bomb detectors, vehicle tracking/monitoring systems and others continue to have a ready market in Nigeria. Nigerians now prefer U.S. origin security equipment because of its durability, reliability, sustainability, support and after sales service.
The Nigerian Local, State and Federal governments have continued to focus on security, and are providing the requisite funding, either through direct funding or Public-Private Partnership (PPP), to improve their efforts in this critical sector. The Government of Nigeria budgeted and spent over $2 billion in 2016 to improve security services and equip security agencies. This budget is grossly lower than
the previous year’s that was massively looted by corrupt politicians and military officials who are currently facing trials.
Training and restructuring is also being accorded high priority by the Inspector General of Police as well as the defense agencies. Future government tenders, made public either directly from the Government of Nigeria agency concerned or through the Bureau of Public Enterprises (BPE), will be an opportunity for U.S. businesses selling security equipment as the administration of President Muhammadu Buhari is known to be more inclined to dealing with the U.S. due to its dislike for corruption, as enshrined within the Foreign Corrupt Practices Act (FCPA), transparency, and his years of training in the U.S. as a military officer.
Companies across all sectors, homes and religious organizations have continued to take security more seriously than they have done in the past years. There is an increased demand for bomb and metal detectors to secure facilities across the country as well as body scanners, and the U.S. remains the preferred source due to high level of durability of its products.
Opportunities
Today, most of the equipment used has been purchased from countries other than the U.S., with some manufactured locally. U.S. suppliers have enormous potential in the Nigerian market since U.S. origin equipment is preferred by Nigerian importers of security equipment for durability and dependability. The current leadership of the two countries have further given credence to the importance of increasing security training and services to Nigeria.
To further promote U.S. exports into Nigeria, U.S. firms should explore forming local partnerships, building business relationships, participating in trade missions to Nigeria to introduce their products and services, as well as consider setting up local manufacturing/assembly plants to fast and easy access to their products by interested Nigerian parties. These plants will be overseen and monitored by U.S. personnel and developed to American standards to ensure there is no dilution of standards or quality. This helps to capture and maintain existing and future market share. Both government and private security practitioners expect a high growth level in this sector in the coming years as safety and security issues command greater attention and resources.
Immediate Government of Nigeria prospects for U.S. manufacturers or suppliers of Safety and Security equipment include;
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Nigeria Crime Analysis Centre
-
Safer Highways Patrol Scheme
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Safer City Initiative
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Stun Guns/Tasers
-
Firefighting equipment
TRADE EVENTS
-
Shooting, Hunting and Outdoor Trade (SHOT) show
Date: January 21 – 24
Location: Las Vegas
-
International Security Conference (ISC)
Date: April 10 – 13
Location: Las Vegas
-
Global Security Exchange (GSX) – formerly ASIS
Date: September 8 - 12
Location: Chicago
Local Event:
-
USA FAIR 2020: ACCESS NIGERIA (April 28-30, 2020 - TBC)
Eko Convention Center, Victoria Island, Lagos.
Organized by the US Commercial Service exclusively for American exhibitors to meet thousands of prospective Nigerian businesses.
(Please contact Anthony.Adesina@trade.gov for more information)
Web Resources
Securex West Africa (Commercial & Homeland Security, Fire, Safety, Cyber Security et al.) Conference: www.securewestafrica.com
ASIS African Security Conference: www.asiswestafrica.org
Punch Newspaper Online – Fire Vehicles
Channels Television News Online
Channels Television News Online
Channels Television News Online
For more sector information, e-mail: Anthony Adesina A., U.S. Commercial Service, U.S. Consulate General, Lagos, Nigeria at: Anthony.Adesina@trade.gov.