Feasibility Report & Business Plan on d Establish of a Nusery and Primary School in Ibadan, Oyo State

1

FEASIBILITY STUDY AND BUSINESS PLAN ON THE

ESTABLISHMENT OF A PRIVATE NURSERY AND PRIMARY SCHO OL

BY

GROUP TWELVE

NAMES MATRIC

ADEGBOYE TOLULOPE 139085

ADELEKE ADEBOWALE 139087

BODUNRIN OLALEKAN SAMUEL 139170

OLUMIDE ABIMBOLA 139132

SHITTU WASIU OLAWALE 139142

SUBMITTED TO THE DEPARTMENT OF ECONOMICS,

UNIVERSITY OF IBADAN,

IBADAN.

AUGUST 2011.

2

TABLE OF CONTENTS

PART A: FEASIBILITY STUDY

EXECUTIVE SUMMARY

CHAPTER ONE

Page

1.0 INTRODUCTION 1

1.1 Problem Statement 1

1.2 Justifications of the Project 2

1.3 Objectives of the Project 3

1.4 Possible impact of the Project on Ajibode community 4

1.5 Methodology of the study 6

1.6 Scope of Project 6

1.7 List of figures and tables 7

CHAPTER TWO

2.0 MARKET FEASIBILITY

3

2.1 Market Research 8

2.2 The potential Market Area 9

2.3 The Potential Customers 9

2.4 Our Competitors 10

2.5 Advertisement and Awareness 10

CHAPTER THREE

3.0 TECHNICAL FEASIBILITY

3.1 Location and Site of the School 12

3.2 Justification for the choice of the Location 12

3.3 School Buildings and Facilities 13

3.4 Pre-School Equipment and Teaching Aids 14

3.5 Human Resources Requirements 15

3.5.1 List, Qualifications and Responsibilities of Personnel 15

CHAPTER FOUR

4.0 LEGAL AND ENVIRONMENT FEASIBILITY

4

4.1 Legal Feasibility 20

4.1.1 The National Policy on Pre-Primary Education 20

4.1.2 The Universal Basic Education (UBE) Programme 21

4.2 Operating Requirements from Oyo state Ministry of Education 23

4.3 Partnership Deed 28

4.4 Registration of the school 33

4.4.1 Registration with the Ministry of Education 33

4.4.2 Registration with National Association of Proprietors of Private School

(NAPPS) 33

CHAPTER FIVE

5.0 FINANCIAL FEASIBILITY

5.1 Key Assumptions 34

5.2 Basis for Financial Analysis and Projections 35

5.3 Financing Plan 39

5.4 Financial Items and Costs 39

5.5 Operating Costs 41

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CHAPTER SIX

6.0 ECONOMIC FEASIBILITY

6.1 Appraisal Techniques 47

6.1.1 Non-discounted Appraisal Techniques 47

6.1.2 Discounting Appraisal Techniques 49

PARTB: BUSINESS PLAN

CHAPTER SEVEN

BUSINESS DESCRIPTION PAGE

� Industry

� The School

Our Services

• Primary education

• Nursery School

� School Procedures

� School fees

THE MARKET

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� Customers and competition

� Market Size and Trend

� Estimated Market Share

� Sales Projection

DEVELOPMENT

� Development Status

� List of Departments

� Staff Trainings

� Teaching Methods

� Management Teams

• School Management Structure

• School Administration

• Head-Teacher

• Staffs

� Financial

� Cash Flow

� Exit Plan

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EXECUTIVE SUMMARY

Setting up a school, especially a nursery and primary school requires that the

investor concerned first developed affections for small children and activities that

has to do with them. This keeps the business going, as establishing a school may

not be that lucrative at the ‘teething’ stage of the business. Before writing this

report, a detailed survey was done, visiting various school owners, association of

school owners, the ministry of education, the intended site of the school and other

key stakeholders. Useful data, procedures and directives were received on the step

by step of establishing a school and the pitfalls. Our findings reveal that the

definition of a standard school is not only in the teaching pattern or the structure of

the school building, but also in the learning facilities but in place to aid learning.

Superior nursery and primary school will be sited at Alagogo of Ajibode

Area, Akinyele, Oyo State. This is based on a market feasibility that reveals the

low standard of education in the area and the desire for a standard school in the

area, which made parents send their children to schools of higher standard in

distant Bodija area. The study also reveals that there are two public and four

private schools in the area presently, most of which are extremely low standard.

Apart from ensuring a quality standard in the proposed school, we also seek to

embark on an aggressive awareness and publicity. The technical feasibility shows

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the school building plans and several technical requirement of putting the school in

place, and found to be realistic.

From the legal feasibility, the necessary rule and regulation from the

ministry of education was complied with, although the ministry specifies two plots

of land, we use three to allow for adequate playground and parking space. The

financial and economic feasible through various standard techniques of assessing

the viability of projects, both discounting and non-discounting were and employed

and they all revealed that the project is viable and worth an investment to embark

on. The payback period shows that it will take one year, six months and 13days for

the project to recover its initial investments while the return on Investment through

the rate of return reveals 154.3% and Average rate of Return shows 30.9%

annually. The Cost Benefit Analysis or Benefit Cost Ratio was also used and found

to be 2.116, while the Internal Rate of Return was 0.78 and the Net Present Value a

nonnegative value of 120,479,048. Finally, we recommended that the project is

feasible and viable; hence, it should be embarking upon.

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CHAPTER ONE

INTRODUCTION

Education is an important tool in the development of the human resource of

a nation. It seen together with health as the areas a nation should not take for

granted, this is because of its impact on the development of the human mind, in

terms of literacy, social interaction and inculcation of national consciousness as

well as its spill-over impact on other citizens and the upcoming generations.

Various nations of the world in a bid to develop their education sector have

embarked on several programs and have put the educational sector in the fore front

in terms of policy consideration. The nursery and primary education has been

recognized as the basic form of education necessary for the development of a man,

eradication of poverty and promoting social values. This is why the United Nation

as one of its developmental goals has required that universal basic education be

promoted among nations. The international institution targets to ensure that all

boys and girls complete a full course of primary schooling in year 2015. Although

there are 1,576 public primary schools and various private primary schools in Oyo

state, the standard of this basic education still appears low compare with that of

Lagos state and most advanced countries. As investors, we are aware of this

problem and have decided to proffer solutions to these problems in our own little

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ways without neglecting profitability. But before we venture into this investment

opportunity, it is necessary that we do its proper assessment.

1.1 PROBLEM STATEMENT

The Nigerian economy, characterized by multi-ethnic regions with a

population of about 140,003,542 people (population census, 2006) and diverse

religious sects, is plagued with high levels of illiteracy (32%) and an increasingly

declining educational standard. It is estimated that more than 35 million of this

population figure are 15 years old or younger that is about 40 percent of the total

population. This implies that almost 20 million of these should be attending

Nursery and primary schools in Nigeria. There is no doubt that primary school

system in Nigeria is facing serious problems despite this huge number of pupils it

has to cater for and the problem facing the Nigeria education is the low standard

facilities at the point of establishments.

Moreover, across the various geo-political zones within the country, the

standards of education differ from one region to the other with this being largely

culture dependent. While the northern part of the country brings up the rear in

terms of educational attainment obviously fuelled by their cultural beliefs, the

same cannot be said of the southern region of the country which boasts better and

higher levels of educational attainment when compared to their northern

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counterparts. Nonetheless, this level of educational attainment by the southern

region of the country still falls well below acceptable standards in a global context.

It should be noted that the moribund standard of education witnessed at the tertiary

level can be traced to the worrisome standard at the Nursery and primary school

tiers of education, since the Nursery and primary school education is a foundation

upon which all other levels of education are built.

1.2 JUSTIFICATIONS OF THE PROJECT

Though the establishment of private nursery and primary school is found to

be continuously increasing over time in almost part of the country, the case of

those Private Schools that follows the government and International standards are

very few. Moreover, the level of illiteracy rate is (32%) which is still very high

when compared with other countries of the world like South Africa with illiteracy

rate of just. In line with this, the United Nations (UN) has asserted that to ensure

development in every nation of the world, attention must be given to education

prompting it to identify Universal Primary Education as one of the eight

Millennium Development Goals (MDGs).

Furthermore, to propel educational advancements in every nation, the

United Nations Children Education Fund (UNICEF) has proposed that about 26%

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of each country’s annual budget should be devoted to the educational sector.

Unfortunately, this has not turned out to be the case in Nigeria with a meager 6%

of its annual budget being allocated to education yet; the country expects to

compete favourably with other world nations in terms of educational achievements.

In view of the obvious reluctance of the Nigerian government at various levels to

commit the much needed resources necessary to advance the level of education in

the country, the onus therefore lies with private entities that have passion for

children and also know the value of quality education to provide such.

1.3 OBJECTIVES OF THE PROJECT

Since education refers to the amount of schooling received by an individual,

essentially for a satisfying and rewarding life, as it is not only fundamental to the

broader notion of expanded human capabilities that lie at the heart of all what

development is about, but also, it plays a key role in the ability of a developing

country like Nigeria to absorb modern technology and to develop the capacity for

self-sustaining growth and development. The main objective of establishing

this project is to inculcate permanent literacy and numeracy, and the ability to

communicate effectively among the Nigerian child. However, the other objectives

of the project will include;

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� The need to raise educational standards especially at the Nursery

and primary school level: This project therefore seeks to address this

worrisome situation by providing better and quality education for our

tomorrow’s leaders.

� The need to raise literacy levels: this project will also help to improve

the literacy level in the country which coincidentally is one of the

measures of the Human Development Index (HDI) - an indicator of well-

being in an economy.

� Lay a sound basis for scientific and reflective thinking. This will be

achieved true provision of citizenship education as a basis for effective

participation in and contribution to the life of the society with the aim of

molding the character and develop sound attitude and morals in the child.

� The need to inculcate both formal and informal means of learning

into Schools: This project will especially employed, the uses of informal

learning where children are going to learn about their culture, different

folklores and minor adages particularly in Yoruba, since the project

location is within the Southern Nigeria.

1.4 POSSIBLE IMPACT OF THE PROJECT ON AJIBODE

COMMUNITY

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The benefits of this project will be looked at from two broad perspectives; the

economic and the social perspectives.

ECONOMIC PERSPECTIVE

� Rise in literacy rate among the Young ones.

Better education adds value to individuals (the human capital) employed in

the production process and this in turn improves the level of efficiency of the

workforce which in turn leads to a rise in productivity levels in the country and this

processes starts from Nursery and Primary School.

� Economic growth

It has been argued that a high rate of education is essential for countries to

be able to achieve high levels of economic growth. Empirical analysis tends to

support this theoretical prediction that poor (developing) countries should grow

faster than rich (developed) countries because they can adopt cutting edge

technologies already tried and tested by rich countries. However, technology

transfer requires knowledgeable managers and operators who are able to operate

new machines or production practices borrowed from these developed countries in

order to close the gap through imitation. Therefore, education (stock of "human

capital") plays a dominant role in an economy’s growth process as it aids the

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transfer/acquisition and application of modern technologies necessary to aid

productivity and ultimately; high levels of economic growth in such nations.

Welfare Improvements

Bearing in mind the fact that education enables rising levels of production

and a rise in efficiency of labour all leading to a rise in national output, it will

ultimately result to a rise in welfare for the citizenry as a whole. This is so because

people who are now employed earn income which they in turn use to cater for their

consumption needs. Also, the government has more funds which it can in turn use

to finance various developmental projects in the economy with a keen interest in

improving the welfare of the economy as a whole.

Better macroeconomic policies

Better education also aids the decision making process in an economy. This

is so because these individuals saddled with the responsibility of taking important

decisions for the economy (policy makers) have a better and well-grounded

understanding of the dynamics of the society in which they operate in and this in

turn leads to appropriate policy formulation and better implementation procedures.

SOCIAL PERSPECTIVE

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From a social angle, educational attainments will foster a reduction in crime

rates, Better human relations and Good governance.

1.5 METHODOLOGY OF THE STUDY

The feasibility of the study is on the establishment of a nursery and primary

school in Oyo State, Nigeria. The methodology is based on physical visitation and

interview of school owners, the ministry of education, the pressure groups that

regulate the activities of private school in the state and every other agents like

property dealers, publishers etc. This information is analyzed using various

Investment appraisal techniques.

1.6 SCOPE OF THE PROJECT

This study focuses on establishment of a private Nursery and primary school

in Oyo state especially in Akinyele local government area. The scope and coverage

of this project will be Akinyele local government area of the state, with particular

location in Ajibode community where 3 plots of land are available. It should be

noted that education is a social good meant to impact the society as a whole.

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1.7 LIST OF FIGURES AND TABLES

Table 2.5.1: Advertisement Expenses

Figure 3.3.1: The School Building Plan

Figure 3.4.1: Pre-School Equipment &Teaching Aids Price List

Figure 3.5.1: The School Organograms

Table 3.5.1: Number of Personnel and Salary Structure

Table 5.2: Break Down Of Key Cost Element

Table 5.3: Break Down Of Revenue Elements

Table 5.5.2: Annual Depreciation Of Fixed Assets

Table 5.5.3: Costs Of Fixed Assets Over The Projected Years

Table 5.6.1: Estimated Overhead Cost For The First Year

Table 5.6.2: Financial Analyses (Income Statement)

Table 5.6.3: Net Cash Flow

Table 5.7: Balance Sheet

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Table 6.1: The Pay Back Period Technique

Table 6.2: Cost Benefit Calculations

Table 6.3: IRR Calculations

Table 6.4: Net Present Value Techniques

Table 6.5: Projected Economic Cash Flow from Years (0-5)

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CHAPTER TWO

MARKET FEASIBILITY

The purpose of the marketing feasibility study is to determine the suitability

of this project for profitable development and to define optimal service in

accordance with project market demand and to project services patronage and

annual revenues of the school. The methodology entails examination of the site’s

market potential followed by research on several private nursery and primary

schools as well as the regulatory bodies and the competition in the market.

Research finding are analyzed with respect to potential market area, potential

customer, potential competition and preliminary development plans to define

marketing feasibility in terms of potential market share, marketing constraints and

opportunities and projected absorption rate and pricing ranges. These feasibility

components provide the basis for definitive recommendations on development

potentials, development strategy and a cost-effective advertisement and awareness

strategy.

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2.1 Market Research

A detailed market survey was done on the 8th August through 12th of August,

in which various standard schools were visited, one of which refused to give us the

necessary audience (i.e. Lifeforte nursery and primary school, New Bodija).

Mr. Ayeni Olusegun Joseph, the proprietor of Total Care nursery and

primary school, New Bodija was interviewed on the whole steps in setting up the

projects, its registration procedures, managements, profitability and regulation

issues. Also, madam Olaniya, the proprietress of Bloom foundation nursery and

primary schools, Bashorun also show us the various departments that should be in

well-established and regulated school.

In like manner, Mr. Adekanbi, a proprietor of a well-functioning school and

the chairman, National Association of Proprietors of Private School (NAPPS), Oyo

state Chapter gave a detailed explanation on process of establishing a school, the

registrations, the regulatory bodies in charge of various stages of its establishment,

the likely payback period and a little history of nursery and primary school in Oyo

state. The state general secretary of NAPPS and coincidentally Ibadan North

general secretary, Rev. Alafe, who also had being operating a nursery and primary

school for twenty years now expatiate on the various challenges of running a

school, effect of minimum wage on school owners the registration process both

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with the body and the ministry of education and several government policies both

at state and national level. In addition, parents were interviewed on the quality of

education expected from a good school.

Finally, the Oyo state ministry of education, Secretariat was visited on the

12th of August, we met with Alhaji Alabi, who was in charge of Nursery and

primary school, he gave a booklet that contain the necessary requirement to be met

before establishing the project.

2.2 The potential Market Area

Presently, there are 324 secondary schools, 1,576 public primary schools,

five Technical Colleges located at Ogbomosho, Oyo, Saki, Ibadan and Igbo-Ora.

Two Colleges of Education are located in Ibadan as well as the famous University

of lbadan and Ladoke Akintola University of Technology, Ogbomosho. There is

also the Polytechnic, Ibadan with satellite campuses at Eruwa and Saki and Special

Science Schools located within the state. The numbers of private schools in the

state - especially nursery and primary school are beyond the radar of the ministry

of education, this is due to inefficient regulations on the part of the regulatory body

(Oyo State ministry of education). Given the quest for knowledge by the residents

of Ibadan, it is expected that School- especially nursery and primary will spring up

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to tap into these opportunities, but unfortunately many of the schools in this area

are of lower standard.

2.3 The Potential Customers

Akinyele local government area of Oyo state is highly populated with about

105,726 people with 40 percent falling within the range of our targeted age group

i.e. ages 1 to 10 years old. These children are poorly taken care of in public schools

and the so-called private schools in the area lack the major school facilities needed

to nurture them. Due to these, most of them are finding it difficult to make it up to

a higher level of education especially beyond the secondary schools. Despite the

fact Ajibode is to some extent populated by local Ibadan Indigenes, some of which

are low income earners the neighbouring communities like Awo, and University of

Ibadan are populated by high income earners that will love to send their children to

schools that are of such standard. The absence of schools of such higher standard

in the area leads them to send their children to far away area, just to ensure the

achievement of quality education

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2.4 Our Competitors

There are about three public schools and five privately owned schools located in

the area. Most of these schools are of low standard in terms of facility especially

academic, due to this, some residential send their wards to schools far away from

the area. The introduction of Superior nursery and primary school will bring into

the area will standard education and exceptional facilities that will attract student

from the entire neighbourhoods- Ui staffs children and some other well–to-do

citizens that reside in the area.

Some of these competitors are:

� Ade-Osun public primary school,(Public)

� St. Mathew primary School(Public)

� Signet International Academy(Private)

� Royal people group of School(private)

� Loveth shepherd Foundation(Private)

� Chrysolite Model Nursery and Primary School(Private)

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2.5 Advertisement and Awareness

As a way of marketing our services to the world, we shall have a department

under the office of the secretary/ PRO that will ensure that awareness is created all

over the state. Media like the national newspaper, radio jingles, bill boards and

posters will be employed to advertise our services to our targeted clients.

Table 2.5.1: Advertisement Expenses

S/N MEDIA Quantity COST 1 Internet(School

Website) 1 65,000

2 Radio(Splash FM) 5000 3 Bill Board 3 @12000 Each 36,000 4 Posters 100 4,500 5 Pamphlets 2000 2,500 TOTAL 113,000

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CHAPTER THREE

TECHNICAL FEASIBILITY

This section serves as a flow chart of how the services evolve and move

through the business to physically reach your market. The Technical Feasibility

Study assesses the details of how to deliver a product or service. This have to do

with identifying the material input, labor, transportation, the location of the

business, the technology needed in production and others. It is the logistical or

tactical plan of how the business will deliver its services.

3.1 LOCATION AND SITE OF THE SCHOOLS

Superior Nursery and primary School shall be sited at Alagogo of Ajibode

Area, Akinyele, Oyo State. Ajibode community is situated very close the

University of Ibadan, and falls under Akinyele local government area. At Alagogo

area of Ajibode, there are about six plots of lands ready to be sold to intended

buyers at the rate of 850,000 per plots. The Oyo State ministry of education

suggested that we use two plots of land, but due to the facility we have in mind and

to create a conducive and recreational environment for learning, we have decided

to buy three plots out of these six plots of land. At Ajibode where the school will

be located, there is a public primary school (Ade-Osun public primary school) and

several other privately owned schools. The area although just developing, has

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potentials that can be easily tapped in before the development come to full state.

The usual problem of this area is accessing it during flood, but recently, the

administration of the University of Ibadan constructed a bridge that link the

community directly with Abadina community, hence, making easy for potential

students from Ui staffs quarter, Agbowo and environs in accessing the even during

floods.

3.2 JUSTIFICATION FOR THE CHOICE OF THE LOCATION

The available schools in this area have poor teaching standard, inadequate

facilities and poor staffing, many parent prefer to send their children to far away

distances like Bodija where few standard schools exist. Also, the recent

construction of Abadina-Ajibode road serves as an easy access to the area by

residents of UI, Agbowo and environs, who have decided to send their children to

far away distance due to flooding during raining season. Finally, this area still have

some un-developed lands that can used for the construction of the project, since it

is a fast developing area.

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3.3 SCHOOL BUILDINGS AND FACILITIES

The school building will be constructed based on the standard issued by

ministry of work, land and Housing and transport in Oyo State, but rather than two

plots, we have decided to use three plots so as to have adequate space for

recreation, playground and parking space. It has seven classrooms, a library, a

multipurpose laboratory, a conference room, a reception, a sickbay and six offices

as well as several stores. On the two sides of the building are playing grounds. The

reception is located immediately after the entrance, while the administrative block

is located on the two sides of the conference room. The plan of the intended school

is shown below.

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Figure 3.3.1: The School building plan

3.4 PRE-SCHOOL EQUIPMENT AND TEACHING AIDS

A School is not betters than its teaching aids, because this is the mechanism

through which knowledge is transfer to the pupils. Since we are dealing with

children, we decided to use educational equipment and aids that are colourful and

harmless and at the same time attractive so as to gain the attraction of the pupils

during teachings. Apart from teaching aids, it is popular said that “ all work

without play make jack a dull boy”, so tools and different types of equipment that

will make the children especially those in the nursery class feel at home will be

installed in the school environment. These will help create a conducive and

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learning-friendly environment for all our pupils, making learning a fun. The

preschool equipment and teaching aids to be put in place are;

Figure 3.4.1: Pre-School equipment &Teaching Aids price list

S/N Names Unit Price(N)

Quantity Total Price

1 Activity Mats 1,050 4 4,200 2 Activity Tables 3000 4 12,000 3 Art Centre 10,000 1 10,000 4 Art craft Accessories 3000 - 3,000 5 Audio Visual Carts 5,000 2 10,000 6 Pre-school Benches and Desks 3,000 15 Set 45,000 7 Carts- Preschool 1,500 4 6,000 8 Children Rugs 3000 2 6,000 12 Classroom Storage 1,500 7 Classes 10,500 13 Cubbies 1,500 7 Classes 10,500 14 Cots and Mats 1,000 2 Classes 2,000 15 Computer Station 100,000 100,000 16 School Library 70,000 - 70,000 17 Multipurpose Laboratory 130,000 - 130,000 18 Dry Erase and Marker Boards 20,000 7 140,000 19 Children Reception Furniture 15,000 - 15,000 20 Rockers –Child 4,000 2 8,000 21 Toys- Educational 3,000 1 set 3,000 22 Swings 20,000 1 20,000 23 Slides 25,000 1 25,000 24 Merry-go-round 30,000 1 30,000 TOTAL 660,200 Field Survey, Aug 2011.

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3.5 HUMAN RESOURCES REQUIREMENTS

The business will be a partnership between five persons. These partners

were chosen based on the fact that they have a proper understanding of the

educational terrain and nurse a common goal of advancing the frontiers of

education in the country. They also complement each other based on the cohesion

exhibited by these partners and an understanding of one another’s strength and

weaknesses. Thus, they possess the ability to cover up for each other and pool

together their distinct individual ideas for the overall advancement of the college.

3.5.1 Lists, Qualifications and Responsibilities of Personnel

Academic staff:

� Headmaster

� Assistant Headmaster

� Teaching staff

Non-academic staff:

� Secretary/PRO

� Bursar/Accountant

� Librarian

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� Medical staff

� Technical team

� Sport Coordinator

Auxiliary Staffs

� Nursery Assistants

� Bus drivers

� Security Men

� Gardener

� Cleaners

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Figure 3.5.1: The School Organograms

Academic staffs

a) Headmistress

Qualification : B.Ed. Education

Experience: 5-10 years working experience in a well-established private school

Responsibilities: She shall be responsible for the day to day management of the

school and report directly to the proprietress.

HEADMISTRESS

ASS. HEADMISTRESS

LIBRARIAN MEDICAL /WELFARE TEAM

TECHNICAL STAFFS

SPORT CORDINATOR

AUXILIARY STAFFS

TEACHING STAFFS SECRETARY/PRO

ACCOUNTANT/ BURSAR

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b) Assistant Headmaster/ Headmistress

Qualification : B.Ed. Education

Experience: 3 years working Experience in managerial field.

Responsibilities: He or She shall assist the headmaster on academics and

administrative issues and report directly to her.

c) Teachers

Qualification : NCE/B.ED/B.

Experience: At least 2 years working Experience and registered with teachers’

registration council of Nigeria (TRCN).

Responsibilities: Coordinate and teach the students.

Non-Academic staffs

d) Secretary/PRO

Qualification : OND/HND in Secretarial Studies

Experience: At least a year working experience, with adequate computer

knowledge.

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Responsibilities: He or She shall be responsible for all the school correspondence

and publicity.

e) Bursar/Accountant

Qualification : B.Sc. Accounting

Experience: At least 3years working experience

Responsibilities: He or She shall be responsible for daily book keeping of the

school.

f) Librarian

Qualification: NCE/OND/B.Sc. in library related studies

Experience: At least 1 year working experience

Responsibilities: Shall be responsible for library attendance need of the students

g) Medical staffs

Qualification:

Experience: At least 2 years working experience, being a member of the Red

Cross Society will be an advantage.

Responsibilities: She shall manage the school’s sickbay and attend to student that

fall heal during school period.

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h) Technical Staffs

Qualification : OND/HND/Trade test III

Experience: At least 3 years working experience in generating sets and borehole

operating.

Responsibilities: This team shall responsible for the operating and general

maintenance of the generator, as well as the borehole system and all our electrical

appliances.

i) Sport Coordinator

Qualification: OND/HND/B.Ed. in physical Health Education or related studies

Experience: At least a year working experience.

Responsibilities: Weekly organization of sporting activities for the students as

well as the inter-out sporting activities.

Auxiliary Staffs

j) Nursery Assistants

Qualification: at least Grade III

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Experience: At least 2 years working experience with children.

Responsibilities: Daily welfare needs of the nursery children

k) Bus drivers

Qualification: WASSCE with a driving License.

Experience: At least 2 years working experience and conversant with Ibadan road

network.

Responsibilities: Shall be responsible for conveying the students to and fro daily.

l) Security men

Qualification: SSCE

Experience: at least 1 year experience

Responsibilities: Shall be responsible for the security of the school premises day

and night.

m) Gardener

Qualification : a minimum of first leaving School certificate.

Experience: a little knowledge of Horticulture will be an advantage.

Responsibilities: He shall be responsible for the daily trimming and maintenance

of the school flowers and grass.

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n) Cleaners

Qualification: a minimum of JSSCE

Experience: Prior knowledge not required.

Responsibilities: Daily cleaning of the Offices, classes and the school compound.

Table 3.5.1: Number of Personnel and Salary Structure

Designation Number Monthly Salary/ per staff (N)

Total Monthly Salary (N)

Salary Per Annum (N)

Head Mistress 1 60,000 60,000 720,000 Assistant Headmistress 1 35,000 35,000 420,000 Teaching Staffs 7 30,000 210,000 2,520,000 Secretary/PRO 1 30,000 30,000 360,000 Bursar/ Accountant 1 30,000 30,000 360000 Librarian 1 20,000 20,000 240,000 Medical Staff 2 20,000 40,000 480,000 Technical Staff 1 18,500 18,500 222,000 Sport coordinator 1 18,500 18,500 222,000 Nursery Assistants 2 12,000 24,000 288,000 Bus Drivers 2 12,000 24,000 288,000 Security Men 2 10,000 20,000 240,000 Gardener 1 10,000 10,000 120,000 Cleaners 4 7,000 28,000 336,000 TOTALS 26 568,000 6,816,000

Field Survey, Aug 2011.

38

CHAPTER FOUR

LEGAL AND ENVIRONMENT FEASIBILITY

It is of utmost importance to understand the laws guiding a project before its

execution. The rules and regulation guiding the operation of a business must be

strictly adhered to so as not to face outright closure by the concerned authority. It

is also important to know the agencies involved in one’s industry so as to find a

means of harmonizing interest.

4.1 Legal Feasibility

4.1.1 The National Policy on Pre-Primary Education

In the current National Policy on Education (Federal Republic of Nigeria, 1998)

early childhood education is labeled as pre-primary education and is defined as the

education given in an educational institution to children aged three to five plus

prior to their entering the primary school. As stated in the policy document, the

purpose of pre-primary education includes, among others:

(i) Providing a smooth transition from the home to the school;

(ii) Preparing the child for the primary level of education;

(iii) Providing adequate care and supervision for the children while their parents

are at work;

39

(iv) Inculcating in the child the spirit of enquiry and creativity through the

exploration of nature, and the local environment, playing with toys, artistic and

musical activities, etc.

(v) Teaching the rudiments of numbers, letters, colours, shapes forms, etc. through

play, and

(vi) Inculcating social norms.

The document lists a number of measures to be taken by government to ensure the

achievement of the objectives of pre-primary education. They include:

(i) Encouraging private efforts in the provision of pre-primary education;

(ii) Making provision in Teacher Training institutions for production of specialist

teachers in pre-primary education;

(iii) Ensuring that the medium of instruction will be principally the mother-tongue

or the language of the local community;

(iv) Ensuring that the main method of teaching in pre-primary institutions will be

through play;

(v) Regulating and controlling the operation of pre-primary education, ensuring

adequate training of staff and provision of essential equipment.

In addition to these measures, appropriate levels of Government (State and Local)

are required to establish and enforce educational laws that will ensure that

established pre-primary schools are well-run, pre-primary teachers well qualified,

40

and other appropriate academic infrastructure provided. Ministries of education are

expected to ensure maintenance of high standards.

4.1.2 The Universal Basic Education (UBE) Programme

The Universal Basic Education (UBE) Programme was introduced in 1999 by the

Federal Government of Nigeria as a reform programme aimed at providing greater

access to, and ensuring quality of basic education throughout Nigeria. The UBE

Programme objectives include

1) Ensuring an uninterrupted access to 9-year formal education by providing

FREE, and COMPULSORY basic education for every child of school-going

age under.

a) Six years of Primary Education

b) Three years of Junior Secondary Education Providing Early Childhood

Care Development and Education (ECCDE)

2) Reducing school drop-out and improving relevance, quality and efficiency;

and

3) Acquisition of literacy, numeracy, life skills and values for lifelong

education and useful living.

41

Basic Features of the UBE Programme

� Free Formal Basic Education

� Compulsory, Uninterrupted Nine years of Primary and Junior Secondary

School education.

� Emphasis on Curriculum diversification and relevance to effectively and

adequately cover individual and community needs and aspirations.

� Disarticulation of Junior Secondary Schools from Senior Secondary

Schools.

� Introduction of rudiments of computer literacy.

� Appropriate continuous teacher professional development.

� Community ownership of schools including participation in decision-

making process in schools.

KEY ISSUES IN THE COMPULSORY, FREE UNIVERSAL BASIC

EDUCATION ACT 2004

1. The Federal Government's intervention shall provide assistance to the States

and Local Governments in Nigeria for the purposes of uniform and qualitative

basic education throughout Nigeria.

42

2. Every Government in Nigeria shall provide free, compulsory and universal

basic education for every child of primary and junior secondary school age.

3. Every parent shall ensure that his/her child or ward attends and completes

(a) primary school education; and (b) junior secondary school education.

4. The stakeholders in education in a Local Government Area shall ensure that

every parent or person who has the care and custody of a child performs the duty

imposed on him/her under the Universal Basic Education Act, 2004.

5. Transition from Primary to Junior Secondary School (JSS) should be automatic;

as basic education terminates at the Junior Secondary School level thus entrance

examination may no longer be necessary. Emphasis will be placed on effective

continuous assessment, while final examination and certification will now be done

at the end of the nine-year basic education programme.

6. The Secondary School system should be restructured so as to ensure that the

JSS component is disarticulated from the SSS as stipulated in the National Policy

on Education (NPE).

43

4.2 Operating Requirements from Oyo state Ministry of Education

GENERAL REQUIREMENTS FOR THE ESTABLISHMENT OF

PRIVATE SCHOOLS

i. The Proprietor/ Proprietress shall write a letter of intent.

ii. The Proprietor/ Proprietress shall attend an interview

iii. The Proprietor/ Proprietress shall obtain an application form

iv. Facilities inspection shall be conducted on the proposed school

v. Based on the report of iv above, interim approval shall be given.

vi. The proprietor shall commence the process for the employment of teachers

and admitted students.

vii. The registration form shall automatically lapse if not processed within one

calendar year of purchase and therefore due for repurchase.

viii. It shall be noted that an intending proprietor shall ascertain the proposed

name of the school with the concerned (Local Inspector of Education) LIE

before such name is finally accepted and submitted to the Ministry to avoid

duplication.

ix. The LIE shall ensure that the name is not duplicated within the same local

Government Area.

x. The intending proprietor is expected to fulfill all statutory revenue

obligations to the government before approval is granted.

44

xi. On no account shall any Proprietor relocate or duplicate the school without

due approval from the ministry of education.

xii. Proprietors cannot operate schools (Annex) without satisfying all the

necessary condition for the establishment of such schools.

xiii. Clearance shall be obtained from the ministry of works and transport as

regards the suitability of the building as well as ministry of Health / Local

government on the environmental condition of the site.

xiv. The provisional Approval granted by the Honorable commissioner may be

revoked if the school is no longer run in accordance with the laid down

guidelines.

In addition, the following photograph shall be provided

(i) Photograph of the proprietor(2)

(ii) Photographs of the school building-whole. Left, right,& back views

(iii) Photograph of each of the classroom

(iv) Photographs of the pupil and teachers toilets (female/male).

(v) Photographs of the source of water and electricity.

(vi) Photographs of recreational facilities.

(vii) Photographs of adjacent buildings showing front, left side, right side and

back views.

45

ESTABLISHMENT OF NURSERY SCHOOL

FACILITIES

(i) It shall be free from any type of danger to lives of the children and staffs

(ii) It shall be free from heavy traffic, factory and deports where inflammable

materials are kept.

(iii) It shall be securely fenced round for safety of the children.

(iv) 9m x 15m space shall be provided for playground, recreational facilities

and future expansion.

(v) The school shall be at least 1km away from an existing private Nursery/

Primary school in the neighborhood.

(vi) The minimum dimension of the classroom shall be 7m x 4m x 3m. Also,

approval shall be granted to any school occupying or that intends to

occupy any uncompleted building or structure, well-constructed and

adequately ventilated. The building shall not be shared with any other

tenants.

(vii) The buildings shall be plastered and painted.

(viii) The floor covering shall be concrete.

(ix) Arrangement of classroom shall encourage free movement.

(x) The administrative block shall consist of the following:

a. Books in reading corners

46

b. Magazines, pictures etc.

c. Educative wall charts, wall pictures

d. Educative building blocks, toys etc.

FURNITURE

(i) 1200mm x 880mm x 260mm (bench) and 260m x 12mm x760mm (desk)

classroom furniture shall be provided for each pupil to encourage group

work. This will enhance social interaction and the child’s emotions and

social behaviour.

(ii) Each staff member shall have at least one standard table and chair of the

following dimension 105cm x 75 cm tables.

STAFFING

TEACHER QUALIFICATION

The proprietor who has no teaching qualification shall employ the services of a

qualified person as Head teacher and shall have attended at least one Early

childhood workshop/seminar in addition to initial qualification teacher.

(i) Every class shall be manned by an NCE graduate.

47

(ii) Each teacher shall be assisted by a Nursery Assistant (at least Grade II).

(i) All the teaching staff shall register with teachers’ registration council of

Nigeria (TRCN).

(iii) The school shall employ 1 caregiver to 10 pupils.

ENROLMENT

An ideal class shall not consist of more than 30 children to every Teacher.

HEALTH FACILITIES

(i) Provision of portable drinking water (tap, borehole or deep well).

(ii) Wash hand basin shall be designed to promote ideal healthy living and be

provided at the rate of 1 per class.

(iii) There shall be separate toilets for male/female pupils and teachers at ratio 1

to 10 pupils, and 1 to 5 teachers.

(iv) There shall be provision of sick Bay/ First Aid Box which shall contain at

least the following items:

a. Crepe bandage

b. Iodine

c. Methylated spirit

d. Cotton wool

e. A pair of scissors

48

f. Bandage

g. Gentian violet

h. Mist magnesium trisilicate

i. Plasters

j. Analgesics.

(v) The school shall provide the service of trained First Aid persons(Red Cross

Society can help in training Personnel)

(vi) At least one fire extinguisher should be provided in each block/building.

(vii) Provision of good waste disposal system. Each class shall have a waste hand

basin with disposal towels.

RECREATIONAL FACILITIES & SPORTS

(i) There shall be 9m x 15m space for activities.

(ii) Equipment and apparatus for games and physical activities such as swings,

slides, merry-go-round, ladder and playhouse ball should be provided.

The proprietor of a Nursery school which has been running successfully for at least

2 years, if he/she desires, may apply for its upgrading to a primary school.

49

UPGRADING OF PRIVATE NURSERY SCHOOL TO PRIMARY

SCHOOL

REQUIREMENTS

(i) The school shall on its permanent site which shall be at least two

standard plot sizes (36m x 60m).

(ii) There shall be at least a block of six classrooms

(iii) The classroom dimension shall be 7.75m x 7m or 9.0m x 8.0m.

(iv) Games field shall be provided (9m x 15m)

(v) Each class shall not hold more than 30 pupils,

(vi) There shall be enough classrooms for the number of children to avoid

overcrowding.

FACILITIES

(i) The dual desk of 1.2m x 760mm shall be provided.

(ii) The bench shall be 1200mm x 880mm x 260mm.

LIBRARY RESOURCE UNIT

(i) Functional library /reading room.

50

(ii) The library should have a minimum dimension of twice size of a

classroom.

STAFFING

(ii) There shall be a minimum of an NCE graduate teacher per class.

(iii) All the teaching staff shall register with the teachers’ registration council

of Nigeria (TRCN).

WATER AND ELECTRICITY

There shall be available of portable water, and electricity.

SYLLABUS

The syllabus /scheme of work shall basically be in line with the 9- years Basic

Education Curriculum (BEC) to ensure compliance with National policy on

Education.

51

4.3 Partnership Deed

This DEED OF PARTNERSHIP made this 18th day of August, 2011 between

Miss. ADEGBOYE TOLULOPE

Mr. ADELEKE ADEBOWALE

Mr. BODUNRIN OLALEKAN SAMUEL

Miss. OLUMIDE ABIMBOLA

Mr. SHITTU WASIU OLAWALE

hereinafter called the partners of the first part, Second Part, third part, fourth part

and fifth part respectively

AND

A School (Superior Nursery and Primary School) registered under the provisions

of the Companies Act 1956 and having its registered office at Ajibode area Ibadan

North local government, Oyo state hereinafter called the party of Sixth part

52

WHEREAS the Parties of First, Second, third, fourth and fifth Part by

virtue of their partnership deed dated 18th August 2011 have been carrying on the

business of a private nursery and primary School under the name and style of

Superior Nursery and Primary School.

AND WHEREAS the Party of Sixth Part Viz. the school is formed with the

objectives of providing excellent and qualitative services to pupils in a friendly

environment, using qualified and experienced teachers, with appropriate

technology.

AND WHEREAS it is deemed necessary and desirable that a regular Deed

of Partnership be reduced in writing and executed on the terms and conditions

mentioned hereunder.

NOW THIS DEED WINTESSETH AS UNDER: -

1. The Partnership shall come into effect from 18th day of August,2011 and shall

be for an indefinite period unless it is determined.

2. That the name and style of the Partnership firm hereby formed shall be Superior

Nursery and Primary School situated at Ajibode area Ibadan North local

government, Oyo state under the same names and style or with branch or branches

at such place(s) as the parties may mutually decide.

53

3. That the business of the Partnership Firm hereby formed shall be that of

manufacturing and marketing of paints, colors and varnishes etc., as hereto before.

The parties may, however, with their mutual consent open new branch or branches.

4. That the amount standing to the credit of the personal accounts of the Parties of

First, Second, Third, Fourth and Fifth Part in the books of above firm as on 18th of

August 2011 shall be treated as contribution by them to the capital of the

Partnership.

5. That further finance required for the purpose of business of the firm shall be

contributed by the parties in such rate as may be mutually agreed upon. Interest of

which will be mutually agreed upon among the parties from time to time shall be

allowed on the capital standing to his/her credit for the time being in the books of

the partnership.

6. That the regular accounts books shall be kept in due course of business in which

shall be faithfully recorded all the transactions enter into by the firm and such

books shall be closed on last day of every month or/on any other convenient or

auspicious day as may be mutually agreed upon between the parties hereto from

time to time.

7. That on closing the account books in the aforesaid manner, a regular profit &

Loss Account shall be prepared and a balance sheet shall be drawn up.

54

8. That the Profits & Losses shall be divided among and borne by parties hereto in

the following proportions:

Partner % of share in Profits and Losses

Miss. ADEGBOYE TOLULOPE 20%

Mr. ADELEKE ADEBOWALE 20%

Mr. BODUNRIN OLALEKAN SAMUEL 20%

Miss. OLUMIDE ABIMBOLA 20%

Mr. SHITTU WASIU OLAWALE 20%

9. That the active partners (Headmistress) will be paid a Salary of N 60,000 per

month for the services rendered to the rim and they will also be entitled to his/her

share of profit and loss.

10. That all the assets and liabilities of the firm as on 18th August 2011 tangible or

otherwise, would be taken over by the Partnership at its book value and shall be

deemed to be assets and liabilities of this Partnership and all the Parties hereto will

have equal rights/liabilities thereon.

55

11. That all rights of the firm as on 18th August 2011 namely ISI marketing

license, Trademarks, Permits, Telephone connections, Tenancy rights, Lease

rights, Ownership right etc. shall be deemed to be the rights of the partnership and

all the parties hereto will have equal rights/liabilities thereon.

12. That each partner shall: -

(a) Diligently attend to the business of the Partnership and devote his/her

necessary time and attention thereto.

(b) Punctually pay her/his separate debts and indemnify the other partner and the

Assets of the firm against the same and all expenses therefore.

(c) Upon every reasonable request inform the other Partner of all letters,

accounts, writings and such other things which shall come to her/his hands or

knowledge concerning the business of the Partnership.

13. That neither Partner shall without the consent of the others: -

(a) Lend any of the money or deliver upon credit any of the goods of the

firm to any person or persons whom the other Partners shall have

previously in writing forbidden her/him to trust.

(b) Raise or advance any loan in the name of or on behalf of the firm.

(c) Assign, charge or transfer her/his shares in assets or profits of the firm.

56

14. That the account in the name of the school, Superior Nursery and Primary

School shall be opened with the Banks or bankers as the Parties may mutually

decide and the same shall be operated upon by the Parties hereto singly.

15. That any partner may retire from the Partnership firm, hereby formed by giving

two months’ notice in writing to the others but none shall leave the firm until or

unless all the pending commitments are carried out, liabilities paid off, assets

realized and accounts are rendered fully and settled finally to the entire satisfaction

of each of the parties hereto.

16. That the parties hereto may, however, with their mutual consent pay

remuneration to any of the parties hereto at a rate that may be mutually agreed

upon between them from time to time. They shall be at liberty to increase or

decrease such rate of remuneration with their consent from time to time.

17. That in the event of death or retirement of any of the parties hereto the

partnership firm hereby formed shall not dissolve, but shall continue. The legal

heir or the representative of the deceased shall step into her/his shoes.

18. That upon the dissolution of the partnership in any event not hereinafter

provided for the said business, the assets, goodwill and liabilities thereof should

absolutely vest on any one partner mutually decided by the parties to the

partnership.

57

19.That it will always remain open to the parties hereto to amend, annul or change

any term or terms of this Deed of Partnership in the course of its business and in

that event of amending, annulling or changing any term or terms of this deed of

Partnership no fresh deed shall be required to be executed.

20. That without prejudice to the above terms and conditions the parties hereto in

all other matters shall be governed by the provisions of Nigeria Partnership Act,

1932.

21. That all the disputes or differences arising out of it and connected with the

Partnership shall be referred to the arbitrator in accordance with the Nigeria

Arbitration Act.

IN WITNESS WHRE OF, the parties of the First, Second, Third,

Fourth and Fifth parts here have put their respective hands on this DEED OF

PARTNERSHIP on the day, month and year first mentioned above.

IN WITNESSES WHEREOF, the common seal of the Sixth Partner

viz. Superior Nursery and Primary School was pursuance to the resolution of the

Board of Directors passed in that behalf on 18th August 2011 here into affixed in

the presence of Mr. Oladejo Zubur and signed these presents in token thereof in

the presence of the Witnesses:

58

WITNESS SIGNATURE PARTNERS

--------------------- Miss. ADEGBOYE TOLULOPE

Mr. ADELEKE ADEBOWALE

Mr. BODUNRIN OLALEKAN SAMUEL

Miss. OLUMIDE ABIMBOLA

Mr. SHITTU WASIU OLAWALE

59

4.4 Registration of the school

For government recognition and compliance with the law, it is required that

the school registered with the appropriate quarters namely the ministry of works,

the ministry of education and the local government where the school is situated as

well as with National Association of Proprietors of Private School (NAPPS)

4.4.1 Registration with the Ministry of Education

Having met all the requirements stipulated by the Oyo state ministry of

Education and the National policy on education, the school shall be registered with

the ministry of education and Ibadan North local government under the name

Superior Nursery and Primary School.

4.4.2 Registration with National Association of Proprietors of Private School

(NAPPS)

This is a body that is composed of private school owners all over the

country, it is established to ensure quality of education are of higher standard

among the private operators and also enable them speak with one voice as regards

any favourable and unfavourable government policy. A registration form is to be

collected at NAPPS local office at Samanda, UI road for N1000, after which our

school will be inspected to ensure we comply with the necessary requirements.

60

CHAPTER FIVE

FINANCIAL FEASIBILITY

For a project to be successful, then we must investigate whether the business

is financially viable or not. A major question to answer in project viability is if the

benefits of the project justify its cost so as to know whether the project worth

undertaking or not. Answering this question requires identifying the cost element

of the project as well as the source of fund both in the present and in the future.

More specifically, financial feasibility assesses the cost of a project and its

profitability. It also focuses on how the project can stand on its own after the initial

capital requirement are fulfilled, that is after securing funds to implement the

project and paying for such fund. This therefore implies that financial analysis is

necessary in order to ensure adequacy of funds for the project so as to cover all

capital and recurrent expenditures for the continuance of the project.

Every enterprise is supposed to be a going concern that adopts the prudence

convention and concept in which revenue is earned after incurring certain costs.

Such costs must be matched with the associated revenues so as to ensure

consistency of information. Since this is a revenue earning enterprise, recovery of

both investment and operating cost is essential. Hence, there is need for projection

to be made about the financial statement in terms cash flow statement so as to

61

ensure sufficiency and availability of funds for the project both at the present and

in the future.

This section also includes the ascertainment of rate of return (cost of capital),

adequacy of revenue earning capacity, recovery of debt servicing obligation, the

liquidity ratio and working capital requirement.

5.1 KEY ASSUMPTIONS

1) The revenue items including school fees are assumed to increase by 10% in

year 2-3 and by 12 % in year 4-5.

2) The registration cost is assumed to be incurred in year zero alone.

3) The loan is agreed to be paid at N10, 000,000 per year starting from year

one.

4) The interest on loan shall be on the balance of each year.

5) There is a 10% increase on other expenses starting from year 2.

6) The cost of capital for the calculation of the present value is assumed to be

the bank interest rate of 15%.

7) Debt equity Ratio is 2:5

62

5.2 BASIS FOR FINANCIAL ANALYSIS AND PROJECTIONS

� A commercial bank provides us with the initial capital outlay at an interest

rate of 15% per annum. The loan is provided at the beginning of year zero

and to be repaid before the end of the fifth year together with the interest

which shall be based on the balance left in each year.

� The interest payment shall be from year zero as the bank insisted on

deducting it from the loan before disbursing it to us

� Year zero is the year of all requisite capital items, therefore, operation does

not start in year zero. It starts in year one, being the year after year zero.

� TAX deduction is 20%

� Depreciation is charged on all the capital items on a straight line basis at the

following rates:

Building 5%

Motor Vehicle 15%

Plants and Machinery 10%

Furniture’s and Fittings 10%

63

Table 5.2: BREAK DOWN OF KEY COST ELEMENT

FIXED COSTS N N

LAND AND BUILDING:

LAND ( 3 PLOTS) @ N850,000/plot 2,550,000

DEVELOPMENT INCLUDING DRAINAGE,

LANDSCAPING,FENCING AND OTHER DEVT &

SCHOOL BUILDING 15,800,000

18,350,000

PLANTS AND MACHINERY:

PRE-SCHOOL EQUIPMENT & TEACHING AIDS 660,200

BORE HOLE DIGGING 250,000

STAFF COMPUTER 5 @ N40,000 Each 200,000

PRINTERS 3 @ 9000 Each 27,000

64

100 KVA GENERATOR @ 50,000

1,187,200

FURNITURES AND FITTINGS:

OFFICE FURNITURE 1,500,000

CEILING FANS 20 @ 2,000 Each 40,000

AIR CONDITIONS 5@ 50,000 Each 250,000

OTHERS 500,000

2,290,000

MOTOR VEHICLE:

School Bus 1 @ N4m 1,500,000

1,500,000

OTHER COSTS N N

.SALARIES:

65

ACADEMIC STAFFS 3,660,000 per yr.

NON-ACADEMIC STAFFS 1,884,000 per yr.

AUXILIARY STAFFS 1,272,000 per yr.

6,816,000

ADVERTISEMENT:

INTERNET(SCHOOL WEBSITE) 65,000

RADIO(Splash FM) 5,000

BILL BOARD 36,000

POSTERS 4,500

PAMPHETS 2,500

113,000

REGISTRATIONS

500,000

66

MISCELLANEOUS

1,000,000

---------------

---TOTAL

31,756,200

Table 5.3: BREAK DOWN OF REVENUE ELEMENTS

Classes Age No of

Children

School

fees /

Child in

term

Total fee per

Class

Total fees per

class for 3 terms,

(i.e a year)

Baby

Class

0-

2years

Old

20 30,000 600,000 1,800,000

67

Nursery 1 3 years

Old

25 35,000 875,000 2,625,000

Nursery 2 4 years

Old

25 45,000 1,125,000 3,375,000

Primary 1 5 years

Old

30 50,000 1,500,000 4,500,000

Primary 2 6 years

Old

30 60,000 1,800,000 5,400,000

Primary 3 7 years

Old

30 65,000 1,950,000 5,850,000

Primary 4 8 years

Old

30 75,000 2,250,000 6,750,000

Primary 5 9 years

Old

30 90,000 2,700,000 8,100,000

TOTALS 220 38,400,000

68

5.3 FINANCING PLAN N

LONG TERM LOAN 20,000,000.

EQUITY CONTRBUTION 8,000,000

TOTAL 28,000,000

The equity contribution is generated from the contributions of the five partners that

originally come together to start this business. Two of them sold their landed

properties at Ajah area of Lagos state for N1,500,000 each while, also sourcing for

the remaining balance from their personal savings. The other three each

contributed N1,600,000 which represent their accumulated savings.

5.4 FINANCIAL ITEMS AND COSTS

Table 5.0 shows the total capital items required for the project with their

corresponding costs. The capital items are estimated as N23,327,200.

TABLE 5.5.1 CAPITAL ITEMS IN YEAR ZERO

ASSETS COST (N)

69

LAND 2,550,000

SCHOOL BUILDING 15,800,000

PLANTS AND MACHINERY 1,187,200

FURNITURES AND FITTINGS 2,290,000

MOTOR VEHICLE (SCHOOL BUS) 1,500,000

TOTAL 23,327,200

TABLE 5.5.2 ANNUAL DEPRECIATION OF FIXED ASSETS

ANNUAL DEPRECIATION OF

FIXED ASSETS

ITEMS YEA

RS

1 2 3 4 5 TOTA

L

LAND 0 0 0 0 0 0 0

BUILDING

5%

0 790,000 790,000 790,000 790,000 790,000 3,950,0

00

70

PLANTS &

MACHINE

RY 10%

0 118,720 118,720 118,720 118,720 118,720

593,600

FURNITUR

E &

FITTINGS

10%

0 229,000 229,000 229,000 229,000 229,000 1,145,0

00

MOTOR

VEHICLE

15%

0 225,000 225,000 225,000 225,000 225,000 1,125,0

00

TOTAL 1,362,7

20

1,362,7

20

1,362,7

20

1,362,7

20

1,362,7

20

6,813,6

00

Table 5.5.3 shows the cost of the fixed assets over the projected years, that is the

net book values.

TABLE 5.5.3 COSTS OF FIXED ASSETS OVER THE PROJECTED

YEARS

ITEMS YEARS 1 2 3 4 5

71

LAND 2,550,00

0

2,550,00

0

2,550,00

0

2,550,00

0

2,550,00

0

2,550,00

0

BUILDING 15,800,0

00

15,010,0

00

14,220,0

00

13,430,0

00

12,640,0

00

11,850,0

00

PLANTS &

MACHINE

RY

1,187,20

0

1,068,48

0

949,760 831,040 712,320 593,600

FURNITUR

E &

FITTINGS

2,290,00

0

2,061,00

0

1,832,00

0

1,603,00

0

1,374,00

0

1,145,00

0

MOTOR

VEHICLE

1,500,00

0

1,275,00

0

1,050,00

0

825,000 600,000 375,000

5.5 OPERATING COSTS

Table 5.6.1 shows the detailed breakdown of the operating costs, distributional

expenses and administrative expenses etc. for the first year.

TABLE 5.6.1: ESTIMATED OVERHEAD COST FOR

72

THE FIRST YEAR

N

SALARIES 6,816,000

DIESEL & FUEL 500,000

STATIONERY 500,000

TOTAL 7816000

DEPRECIATION

P & M 20% 118,720

F & F @ 10% 229,000

MOTOR VAN @

15% 225,000

BUILDING @ 5% 790,000

TOTAL 1,362,720

DISTRIBUTION/OPERATION/ADMIN

EXPENSES

ADVERTISEMENT 113,000

INSURANCE 2,000,000

MAINTENANCE 3,000,000

73

REGISTRATION 500,000

INT ON LOAN 3,000,000

LOAN

REPAYMENT 10,000,000

TOTAL 18,613,000

Table 5.6.2 shows analysis of the position of the company over the projected years.

TABLE 5.6.2 FINANCIAL ANALYSES (INCOME STATEME NT)

DETAILS YEAR 0 YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5

INFLOWS N N N N N N

BAL B/F 0 (327,200) 9,987,584 21,357,09

1.2

40,562,1

44.96

58,990,0

04.77

EQUITY 8,000,000 0 0 0 0 0

LOAN 20,000,00

0

0 0 0 0 0

74

SCHOOL FEES 0 38,400,00

0

42,240,00

0

46,464,00

0

52,039,6

80

58,284,4

42

TOTAL INFLOW 28,000,00

0

38,072,80

0

52,227,58

4

67,821,09

1.2

92,601,8

24.96

117,274,

446.8

OUTFLOW

CAPITAL

EXPENDITURE

LAND 2,550,000 0 0 0 0 0

BUILDING 15,800,00

0

0 0 0 0 0

P & M 1,187,200 0 0 0 0 0

F & F 2,290,000 0 0 0 0 0

MOTOR

VEHICLE

1,500,000 0 0 0 0 0

SUB-TOTAL (A) 23,327,20

0

0 0 0 0 0

OPERATING

EXP

75

SALARIES 0 6,816,000

7,497,600

8,247,360 9,072,09

6

9,979,30

6

DEPRECIATION 0 1,362,720

1,362,720

1,362,720 1,362,72

0

1,362,72

0

ADVERTISEMEN

T

0 113,000

124,300

136,730 150,403 165,443.

3

INSURANCE 0 2,000,000

2,200,000

2,420,000 2,662,00

0

2,928,20

0

MAINTENANCE 0 3000,000

3,300,000

3,630,000 3,993,00

0

4,392,30

0

STATIONERY 0 500,000

550,000

605,000

665,500 732,050

REGISTRATION

COST

500,000 0

0

0 0 0

INTEREST ON

LOAN

3,000,000

1,500,000 0

0 0 0

LOAN

REPAYMENT

0 10,000,00

0

10,000,00

0

0 0 0

76

FUEL & DIESEL 0 500,000 550,000 605,000 665,500 732,050

MISCELLEOUS 1,500,000 1,500,000 1,650,000 1,815,000 1,996,50

0

2,196,15

0

SUB-TOTAL( B) 5,000,000 27,291,72

0

27,234,62

0

18,821,81

0

20,567,7

19

22,488,2

19

TOTAL

OUTFLOW (A +

B)

28,327,20

0

27,291,72

0

27,234,62

0

18,821,81

0

20,567,7

19

22,488,2

19

PROFIT/(LOSS)

BEFORE TAX

0 10,781,08

0

24,992,96

4

48,999,28

1.2

72,034,1

05.96

94,786,2

27.77

Deduct TAX 20% 0 2,156,216 4,998,592

.8

9,799,856

.24

14,406,8

21.19

18,957,2

45.55

PROFIT AFTER

TAX

0 8,624,864 19,994,37

1.2

39,199,42

4.96

57,627,2

84.77

75,828,9

82.22

ADD

DEPRECIATION

0 1,362,720 1,362,720 1,362,720 1,362,72

0

1,362,72

0

NET CASH

FLOW

(327,200) 9,987,584 21,357,09

1.2

40,562,14

4.96

58,990,0

04.77

77,191,7

02.22

77

Table 5.6.3 shows the summary of the net cash flows.

TABLE 5.6.3 NET CASH FLOW

YEAR INFLOW OUTFLOW NETFLOW

0 - 28,327,200 (28,327,200)

1 38,072,800 27,291,720 10,781,080

2 52,227,584 27,234,620 24,992,964

3 67,821,091.2 18,821,810 48,999,281.2

4 92,601,824.96 20,567,719 72,034,105.96

5 117,274,446.8 22,488,219 94,786,227.8

367,997,747 144,731,288

78

TABLE 5.7: SUPERIOR NURSERY AND PRIMARY SCHOOL

BALANCE SHEET

YEAR 0 1 2 3 4 5

FIXED

ASSET

LAND 2,550,000 2,550,000 2,550,000 2,550,000 2,550,000 2,550,000

BUILDING 15,800,000 15,800,000 15,800,000 15,800,000 15,800,000 15,800,000

79

P & M 1,187,200 1,187,200 1,187,200 1,187,200 1,187,200 1,187,200

F & F 2,290,000 2,290,000 2,290,000 2,290,000 2,290,000 2,290,000

MOTOR

VEHICLE

1,500,000 1,500,000 1,500,000 1,500,000 1,500,000 1,500,000

Subtotal 23,327,200 23,327,200 23,327,200 23,327,200 23,327,200 23,327,200

Less

cumulative

depreciation

0 1,362,720 2,725,440 4,088,160 5,450,880 6,813,600

TOTAL

FIXED

ASSETS(A)

23,327,200 21,964,480 20,601,760 19,230,040 17,876,320 16,513,600

CURRENT

ASSET

Cash and

Bank

5,000,000 15,660,384 28,392,2611.2 47,969,384.96 67,750,964.77 87,315,382.2

TOTAL 5,000,000 15,660,384 28,392,2611.2 47,969,384.96 67,750,964.77 87,315,382.2

80

CURRENT

ASSETS(B)

TOTAL

ASSETS(A+B)

28,327,200 37,624,864 57,994,371.2 67,199,424.96 85,627,284.77 103,828,982.2

Less

CURRENT

LIABILITY:

Creditors

Expenses

Accrued

327,200

Long term

Liability

10,000,000 10,000,000

TOTAL 28,000,000 36,624,864 47,994,371.2 67,199,424.96 85,627,284.77 103,828,982.2

FINANCED

Owner

Equity

8,000,000 18,000,000 28,000,000 28,000,000 28,000,000 28,000,000

Loan 20,000,000 10,000,000 0 0 0 0

81

Add profit

after tax

0 8,624,864 19,994,371.2 39,199,424.96 57,627,284.77 75,828,982.22

TOTAL 28,000,000 36,624,864 47,994,371.2 67,199,424.96 85,627,284.77 103,828,982.2

CHAPTER SIX

ECONOMIC FEASIBILITY

Economic feasibility essentially involves a cost benefit analysis from the

societal point of view. It involves the allocation of scarce and limited resources

such that it is maximally channeled into various productive capacities. Economic

feasibility contribute to the well being of the society by deciding which productive

investment will contribute to the society most after comparison of several

productive investments by measuring the cost and benefit associated with each.

A good project economic analysis must of pertinent include an assessment of the

sustainability of the project to ensure that it:

1. Make provision for sufficient incentives for the producers.

2. Make use of the least cost method of production

3. Make available sufficient funds to maintain project operation without any

stoppage

82

4. Make room for consistency between the distribution of the project cost and

benefits and project objectives which is maximally net output and profit.

The Major steps that have been adopted in analyzing the economic viability of this

project are

1. Identification and quantification of cost and benefits.

2. Valuation of the cost and benefits.

3. Comparison of the cost and benefits.

In the economic feasibility, items such as sunk cost, transfer payments, taxes or

subsidies depreciation, loan repayment and interest payments are excluded in the

analysis. All these items constitute what distinguish economic analysis from

financial analysis.

6.1 Appraisal Techniques

Although there is no single best method, hence, methods utilized in this feasibility

report are as:

(A) Non-discounted Appraisal Techniques

83

1 Payback Period.

2 Return on Investment

(a) Rate of return

(b) Average rate of Return

(B) Discounting Appraisal Techniques

1 Cost Benefit Analysis or Benefit Cost Ratio.

2 Internal Rate of Return.

3 Net Present Value.

6.1.1 Non-discounted Appraisal Techniques

1. Payback Period: Payback period measures the time it takes to recover the initial

investments in a project. This is the simplest method for assessing the desirability

of projects in real life. This method could be appropriate when an investor is

interested in projects which will generate funds for other projects.

TABLE 6.1 THE PAY BACK PERIOD TECHNIQUE

84

YEAR INFLOW OUTFLOW NETFLOW CUM. NET

FLOW

0 - 28,327,200 (28,327,200) (28,327,200)

1 38,072,800 27,291,720 10,781,080 (17,546,120)

2 52,227,584 27,234,620 24,992,964 7,446,844

3 67,821,091.2 18,821,810 48,999,281.2 56,446,125.2

4 92,601,824.96 20,567,719 72,034,105.96 128,480,231.2

5 117,274,446.8 22,488,219 94,786,227.8 223,266,459

PBP = 1 years +(17,546,120/24,992,964) ×12

= 1years + 8.4 months

= 1 years, 6 months, 13days

Interpretation: This shows that it will take one year, six months and 13days for

the project to recover its initial investments

.

2. RETURN ON INVESTMENT

85

(a) RATE OF RETURN (RR)

RR = Project Returns/ Cost of Project

Returns = Benefit -- Cost of Project

Returns = 367,997,747 -- 144,731,288 =

223,266,459

Cost of Project = 144,731,288

%3.154

100288,731,144

9223,266,45

=

×=

RR

RR

Interpretation : This shows that the total rate of return on total investment is

154.3%.

(b) AVERAGE ANNUAL RATE OF RETURN

86

ARR = (Project Returns/ Cost of Project) x 100/t

Returns = Benefit -- Cost of Project

Returns = 367,997,747 -- 144,731,288 =

223,266,459

Cost of Project = 144,731,288

%9.30

5100

288,731,1449223,266,45

=

×=

ARR

ARR

Interpretation: The average annual rate of return the project is 30.9%. This shows

that rate of return on total investment annually is 30.9%, which greater than the

cost of money (15%).

6.1.2 Discounting Appraisal Techniques

Under this method, we will be making use of Benefit Cost Ratio, Internal Rate of

Return, Net present Value (NPV).

87

1. Cost Benefit Analysis or Benefit Cost Ratio: Benefit cost ratio is expressed as

the division of the present value of benefits (profit/loss) by the present value of

costs of a project. If the benefit cost ratio is greater than one, it implies that the

benefits of the project outweighs the costs and therefore feasible. If the benefit

costs ratio is less than one, it implies that the costs of the project outweigh the

benefits. As a result, it is not advisable to embark on such a project.

∑

∑

+

+=−

)1(

)1(/

r

Cr

B

RatioCostBenefitt

tt

Where Bt = Gross Benefit

Ct =Gross Cost

r = rate of return

t= time in years

TABLE 6.2: COST BENEFIT CALCULATIONS

88

Yrs Benefit Discount

factor

@15%

Present value

of Benefit @

15%

Cost Discount

factor

@15%

Present Value

of Cost 15%

0 0 1 0 28,327,200 1 28,327,200

1 38,072,800 0.8695652 33,106,782.61 27,291,720 0.8695652 23,731,930.43

2 52,227,584 0.7561437 39,491,556.9 27,234,620 0.7561437 20,593,285.44

3 67,821,091.2 0.657516232 44,593,468.37 18,821,810 0.657516232 12,375,645.6

4 92,601,824.96 0.571753245 52,945,393.97 20,567,719 0.571753245 11,759,660.09

5 117,274,446.8 0.497176735 58,306,126.59 22,488,219 0.497176735 11,180,619.31

228,443,328.44 107,968,341

116.2341,968,107

44.328,443,228

)1(

)1(/ ==

+

+=−∑

∑

r

Cr

B

RatioCostBenefitt

tt

Interpretation: The benefit cost ratio is greater than 1, this shows that at a

discount rate of 15%, the present value of the cost is less than the present value of

benefit. Hence, the project is viable.

89

2. Internal Rate of Return: Internal Rate of Return tries to find the discount rate

at which the net present value of cash is equal to zero. The discount rate at which

the net present value of cash flow is equal to zero is also the discount rate which

makes the net present value of net benefits equal the initial cost of the project i.e.

the fixed cost. It denotes the average earning power of money invested in a project.

As a result of this, this method takes full cognizance of time value of money. Using

interpolation method, we can derive the IRR as follows.

−−+=

ba

aABAIRR )(

Where A= Lower discount rate (15%)

a=NPV at lower discount rate

B= Upper discount rate (25%)

b=NPV at Upper discount rate

TABLE 6.3: IRR CALCULATIONS

YEA

R

NETFLOW Discounting

factor

@15%

NPV @15% Discountin

g factor

@25%

NPV @25%

90

0 (28,327,200) 1 (28,327,200) 1 (28,327,200)

1 10,781,080 0.86956521

7

9,374,852.174 0.8000000

0

8,624,864.00

2 24,992,964 0.75614366

7

18,898,271.45 0.6400000

0

15,995,496.9

6

3 48,999,281.2 0.65751623

2

32,217,822.75 0.5120000

0

25,087,631.9

7

4 72,034,105.9

6

0.57175324

5

41,185,733.83 0.4096000

0

29,505,169.8

5 94,786,227.8 0.49717673

5

47,125,507.26 0.3276800

0

31,059,551.1

3

120,474,987.4

6

81,945,513.8

6

91

[ ]

78.0

127.325.0

54.473,529,38

46.987,474,12025.0

86.513,945,8146.987,474,120

46.987,474,120)15.025.0(15.0

=

=

=

−−+=

IRR

IRR

IRR

IRR

Interpretation : If the incremental benefit is discounted at 0.78%, the NPV will be

equal to zero.

3. Net Present Value: Net present value approach uses a given discount rate to

discount the expected earnings and costs. The difference between the discounted

future benefits and the initial capital investment measures the present value

equivalent of the profit/loss of a project. The method can thus be used to assess the

absolute profitability of a project and will assist in answering questions relating to

whether or not a project is desirable.

ttt

t r

CBNPV

)1(

5

0 +−

=∑=

92

TABLE 6.4 NET PRESENT VALUE TECHNIQUES

YEAR NET CASH

FLOW

DF @

15%

PRESENT

VALUE

0 (28,327,200) 1 (28,327,200)

1 10,781,080 0.8696 9,375,227

2 24,992,964 0.7561 18,897,180

3 48,999,281.2 0.6575 32,217,027

4 72,034,105.96 0.5718 41,189,102

5 94,786,227.8 0.4972 47,127,712

NET

PRESENT

VALUE

120,479,048

Interpretation : The summation of the discounted net benefits is greater than zero,

that is, a non-negative value of N 120,479,048. On this basis, the project is

worthwhile.

93

TABLE 6.5 PROJECTED ECONOMIC CASH FLOW FROM YEARS ( 0-5)

DETAILS YEAR 0 YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5

CASH INFLOW N N N N N N

BALANCE GROSS

PROFIT

(25,327,200) (1,356,200) 25,011,900 54,016,810 86,851,491

SCHOOL FEES 0 38,400,000 42,240,000 46,464,000 52,039,680 58,284,442

TOTAL INFLOW 0 13,072,800 40,883,800 71,475,900 106,056,490 145,135,933

CASH OUTFLOW

CAPITAL

EXPENDITURE

LAND 2,550,000 0 0 0 0 0

BUILDING 15,800,000 0 0 0 0 0

P & M 1,187,200 0 0 0 0 0

F & F 2,290,000 0 0 0 0 0

94

MOTOR VEHICLE 1,500,000 0 0 0 0 0

SUB TOTAL A 23,327,200 0 0 0 0 0

OPERATING

EXPENSES

SALARIES 0 6,816,000 7,497,600 8,247,360 9,072,096 9,979,306

ADVERTISEMENT 0 113,000 124,300 136,730 150,403 165,443.3

INSURANCE 0 2,000,000 2,200,000 2,420,000 2,662,000 2,928,200

MAINTENANCE 0 3000,000 3,300,000 3,630,000 3,993,000 4,392,300

STATIONERY 0 500,000

550,000

605,000

665,500 732,050

REGISTRATION

COST

500,000

FUEL & DIESEL 0 500,000 550,000 605,000 665,500 732,050

MISCELLEOUS 1,500,000 1,500,000 1,650,000 1,815,000 1,996,500 2,196,150

SUBTOTAL B 2,000,000 14,429,000 15,871,900 17,459,090 19,204,999 21,125,499

TOTAL

OUTFLOW (A+B)

25,327,200 14,429,000 15,871,900 17,459,090 19,204,999 21,125,499

95

SURPLUS /

DEFICIT

(25,327,200) (1,356,200) 25,011,900 54,016,810 86,851,491 124,010,434

96

SUPERIOR NURSERY AND PRIMARY SCHOOL

…quality education for a better life

BUSINESS PLAN

97

BUSINESS DESCRIPTION PAGE

INDUSTRY

The official recognition given to pre-primary education in the National Policy

on Education (Federal Government of Nigeria, 1977) combined with a number of

factors to give rise to an unprecedented expansion in the provision of child care

and pre-primary education institution or nursery schools in the country. Nearly all

the pre-primary education in the country, however, is provided by private

proprietors. Some of these establishments go by the names ‘day care centres’ or

‘playgroups’ and take care of the children while their parents are at work or go for

other engagements but most of them are nursery schools for providing early

98

childhood education. Variations in provision make the registration of these

institutions somehow difficult for Ministry of Education officials. Very few of the

establishments operate as child-care or child-minding units only; others operate as

both child-care units and nursery schools. What is in vogue now is for these

establishments to operate as nursery schools for two years or a bit more and

subsequently apply for license to operate as both nursery and primary schools.

Most of them accept children aged two into their nursery sections who later transit

to the primary sections of the same establishments at the age of five or even less.

The number of children in these institutions varies widely from one or two in the

newly established ones to over 300 in the older ones. However, owing to the high

demand for pre-primary education by parents, it does not take a long time for

newly established pre-primary institutions to grow and develop. A study of one of

such institutions in Ibadan by this Group revealed that it started as a nursery school

with only two children in 1995. In 1996 the number increased to 5 and in 1997,

when it was approved to operate as a nursery school, it had 54 children and six

teachers. The institution sought and was granted approval to operate as a nursery

and primary school in 1999 with a total of 105 children and 12 teaching and non-

teaching staff. By the end of the school year in 2004 the number of children had

increased to 280 with 24 teachers and eight non-teaching staff.

99

Nowadays nursery schools are located in various places and buildings –

campuses of some universities and colleges, premises of some industrial and

business organizations, church premises, residential buildings some part or the

whole of which are hired for use as nursery schools only or both nursery and

primary schools, and so on, while some are set up mainly in some towns as full-

fledged nursery and primary schools with their own building and premises. The

physical structures vary widely in terms of quality and aesthetics from one

establishment to another. So do the facilities and equipment. With the possible

exception of the few nursery schools established by some universities, colleges of

education, companies and a few rich individuals, teacher quality is generally low.

It is only a few of the nursery schools especially those owned by educational

institutions, private companies and wealthy individuals that can afford to engage

the services of university graduate teachers and the holders of Nigerian Certificate

of Education (NCE) qualifications. Most others employ a few N.C.E. teachers (if

any at all), who are usually underpaid, while others employ mainly Grade Two

teachers and secondary school leavers with the School Certificate or General

Certificate (Ordinary Level) qualification. The nursery schools that engage the

services of qualified teachers, especially those owned by private individuals

usually charge high fees while those that charge relatively low fees usually employ

unqualified teachers. Employing unqualified teachers who receive low pay is a

100

strategy used by many proprietors to make their services affordable to a great

majority of parents and at the same time maintain a satisfactory profit margin.

Although the National Policy on Education prescribes that the child in the pre-

primary institution should be involved in active learning, the document detailing

guidelines on provision and management of pre-primary education in silent on the

curriculum contents of such an institution (Federal Ministry of Education, 1987).

In the absence of such guidelines and copies of the curriculum for pre-primary

education, proprietors and teachers resort to curricular of their choice. The

curriculum of a typical nursery school owned by most private individuals includes

alphabets, numbers, nursery rhymes, colouring and story time and, in some cases,

rudiments of reading, writing and arithmetic. The emphasis of most is on the

intellectual development of the children. Much more time is devoted to the

learning of alphabets and memorization of facts, information, poems and some

short passages from various books in English language than to recreational and

social activities. Emphasis is laid on children’s intellectual development. This is

because the yardstick for assessing the quality or effectiveness of nursery schools

by parents seems to be the age at which the children attending them are able to

count, recognize the alphabet, read and, in particular, recite memorized

information, poems, verses and passages. The younger the age at which children

attending a particular school can do these, the higher the quality of the school is

101

adjudged to be by members of the public, and the more patronage it is likely to

receive from parents if the fees charged are not excessive. In the attempt to show

how effective their nursery schools are, the proprietors of some combined nursery

and primary schools admit children at the age of two and allow them to transit to

the primary section of such schools at the age of five or even four, both of which

are below the official school-going age. This transition to primary education below

the official entry age often receives a nod from those parents who wish to show

how fast their children can progress through the educational system, and how

intelligent they are.

THE SCHOOL

� Our Vision

We envision of Superior Nursery and Primary school is to be a potent

community tool and a vehicle through which it would contribute its own quota

towards nudging up literacy levels and standards of Education in Nigeria.

� Mission Statement

102

The mission of Superior Nursery and Primary school is to provide excellent

and qualitative services to our pupils in a friendly environment, using

qualified and experienced personnel (teachers), with appropriate technology.

� Superior Nursery and Primary school Colors

In choosing our official school colors, we have been guided by the need not

only to reflect a lively community of school children, but to provide such a

conducive and enabling environment that would guarantee delivery of sound

scholarship. This is why the two colors of Purple and Yellow have been

chosen.

� Purple is a blend of blue and red colors and is very rich secondary

color. It is always associated with wealth, dignity and purposefulness.

� Yellow as a color is noted not only for its tenderness and brightness

but also for its cheerfulness.

The adoption of the two colors against the background of our motto and logo

is therefore a projection of the school's philosophy to enhance sound

educational services within a lively and sparkling atmosphere.

OUR SERVICES

� Primary School

Subjects Taught at the Primary School Level are:

103

• Mathematics • Indigenous culture and traditions

• English • Yoruba Language

• Social Studies • Moral instruction

• Health Education • Christian Religious Knowledge

• Computer Science • Physical and Health Education

• Elementary Science • Handwriting

• French Language • Home Economics

� Nursery School

Subjects Taught at the Nursery School Level are:

Social Norms Phonics

Letter work

Number Work

� Superior Nursery and Primary school Operating hours

The School opens daily from Monday to Friday except on Public holidays.

Children must have their breakfast and should be in school by 7.30am. The

104

Nursery closing hour is 12.30pm while the Primary School Section closes at

1.30pm.

� Security and Guidance

The security and safety of our pupils is of paramount importance, hence no

one is allowed to collect a pupil before the official closing time and even

then, there is going to be a signatory book which must be signed prior to the

release of the pupil to his/her parent or guardian.

� School Calendar

The School calendar is in accordance with the Oyo State Ministry of

Education's Program. All public holidays are observed.

� Admission

Superior nursery and Primary School offers a highly qualitative education to

all children from three years for Nursery and five years for Primary school.

Religious, ethnic, political or any other form of social discrimination has no

place in our institution.

� Registration for Admission

105

Prospective parents/guardians wishing to register their children/wards in the

school must obtain a copy of the school's prospectus together with

appropriate registration forms from the Headmistress’s Office.

Extra-Curricular Activities

Interesting programmes such as musical concerts, science exhibitions,

excursions, debates, Scouting and Brownies are organized for the students to

promote a healthy and more balanced development of the children.

� School Uniform

All Pupils must be in their school uniforms during school sessions. At least

two sets of uniforms are recommended for each student and children in

primary school section are to dress in sport wears and local wears on

Wednesdays and Fridays respectively. Details relating to the procurement of

the school uniform could be obtained from the Headmistress's Office.

� Pupil's Welfare

Children must have their breakfast before coming to school and where

possible come with packed light snacks for their mid-day meal. The School

should be informed in writing of pupil's absence from school and should be

notified whenever any child is sick. Parents should keep the school authority

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abreast of any change of address as well as that of the family doctor. The

management must be briefed in confidence of any peculiar sickness/ailment

which any pupil may be suffering from, as this will help the management in

cases of emergency. Two medical staffs had been employed to man our

sickbay in order to attend to emergency cases that may occur during school

period. A Suggestion Box has been provided to elicit parent/guardian’s

views, suggestions and other helpful advice on improvement of general

welfare of the school.

� Entertainment and Sports

Various entertainment programs are lined up for the children e.g. end-of-

term activities, end-of-year party, sporting activities, cultural displays etc.

Regular sports and games are organized and pupils are encouraged to

participate fully as a means of developing interests and nurturing the spirit of

sportsmanship.

SCHOOL FEES

Our School fees are quite reasonable compared to the facilities provided.

Fees should preferably be paid in advance, but where this is not possible, it should

however be paid not later than the end of the first week into the new term. Details

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of the current regime of school fees can be obtained from the office of the

Headmistress. Fees are to be paid by means of "Teller" into the designated School

Bank Account. Pupils whose fees are not paid within the stipulated period will be

advised to stay at home until such fees are paid in full. The school official receipts

should be obtained for every payment made.

Moreover, the first term will run from January to April, the second term

from April to July while the third term runs from September to December. The

school will go on the end of session break till when the school resumes again in

late January.

The students in last stage of their primary education will be mandated to take

the common entrance examination. They are required to register for four subjects

(Mathematics, English, quantitative Reasoning and Verbal Reasoning). This

examination will be conducted at both level of the federal ministry and the state

ministry of education depending on the student choice of examination.

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THE MARKET

� Customers and Competition

In terms of competition, we are fully aware of the fact that other

nursery and primary schools exist in the country (about 18,338 as at 2006)

and in particular at our choice of location, however, only few of these

schools measure up to acceptable global standards. As a standard nursery

and primary school with a desire to advance human wellbeing through

quality education, the quality we would offer stands out so that every

parent/guardian who wants the best for his/her ward would find it

unquestionable to do business with us. Nonetheless, we wouldn’t just sit

back and expect these students to come around so, we would embark on

aggressive publicity and partner reputable media organizations both within

and outside the shores of the community where we are located. The content

of our publicity wouldn’t be geared towards downgrading existing schools,

but instead, we are devoted to making people see reasons and believe in the

realism that we are simply the best on offer in terms of providing educations

in the society and that was the reason we named the school SUPERIOR

NURSERY AND PRIMARY SCHOOL.

� Market Size and Trend

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The Demand for education in Nigeria has being increasing overtime,

considering the rising population which characterizes the country and the

increasing awareness of Nigerians on the need to acquire quality education as a

means of escaping the abject poverty levels that has plagued the country over the

years. The unending record of students poor performance in public examinations,

has also led to increasing demand for, not just education, but standard and highly

qualitative education, especially among the influential and the elite class.

Moreover, the location of the school has implications for marketing of the

service rendered, at least to a given extent. Having realized this, it was given

attention to, in our choice of location. The area-Ajibode community in Ibadan is a

fast developing area with the bulk of its inhabitants, consisting of influential, elite,

high class business men and women especially lecturers and staffs of the

University and Polytechnic. Also, the desire of the school to make provision for

school buses will expand the market for our service as interested parents outside

the said location can have their children enrolled in the school. Intensive

advertisement involving the use of internet, print media, broadcasting houses

(television and radio), and posters amongst many others are also embarked upon to

create awareness to those outside the location.

Estimated Market Share

110

Superior nursery and primary school is a well-equipped school with a lot of

learning facilities, with a conducive learning environment. Based on these, the

school projected about 165 pupils for the first one year of operation and a

consequent increased of five percent (5%) in the second year of operation. This

projection was based on the fact that most of our competitors are not adequately

equipped and their staffs are not qualified as ours. The primary target customers of

superior nursery and primary school are the residents of Ajibode community. The

secondary target customers are people of Abadina in university of Ibadan and it’s

environ. Ajibode falls within the Akinyele local government area. It is the 9th

highest populated local government in Ibadan estimated to have about 211,359

people. The market is reasonably large.

� Sales Projection

The market for educational services is expected to increase annually

and the project assumes that the revenue items including school fees are

assumed to increase by 10% in year 2-3 and by 12 % in year 4-5. The

partners have agreed that before the commencement of operation, they

would carry out an advertisement to sensitize the public. This awareness will

be done in order to give information concerning the services to be rendered

by superior nursery and primary school.

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DEVELOPMENT

� Development Status

A) SCHOOL LAND AREA

The school land area coverage shall be a minimum of 3 plots of land, although

the Ministry of Education requirement was 2 plots of Land. The extra plot is to

give room for future expansion. The certificate of occupancy shall bear the

name of the school (superior nursery and primary school). Legal lease

agreement shall be provided on sites in lieu of certificate of occupancy. In such

areas, the school can be considered to operate provisionally on a Nursery school

basis only.

B) BUILDING BLOCKS OF THE SCHOOL

� One block of a well labels 5 classrooms for the Primary school.

� One block of a well label 2 classrooms and one art centre for the nursery

school.

� A multipurpose laboratory for elementary sciences.

� A well-equipped computer Room.

� An administrative block for the Head teacher, General office,

Bursar/Accountant and a store.

� School Assembly hall

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� At least two classroom-sized for the school Library.

� The size of the classroom shall not be less than 7m x 4m x 3m for the height.

� All other infrastructures will be certified and approved by the ministry of

works and transport or the concerned local government works department

� List of Departments

Various departments have been earmarked for Superior nursery and primary

school, these include the following:

• Library

• Administration

• Sports

• Bursary/Accounting

� Staff Trainings

The school staffs shall be on training and workshop session once in every

year (especially during the end of the session) so as to move them abreast of

information and teaching skills needed to train the school children and provide

them with opportunities for improving their supervisory and managerial skills

through courses/workshops and conferences. Also the headmistress of the school

shall also participate in seminar training such as training in School Management

and Administration and also induction courses for Head teacher. The nature of the

seminar shall be both internal and external as teachers may also be sometimes

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called upon to write and presents to co-staffs on current issues within his/her

teaching subject.

� Teaching Methods

The teaching methods of superior nursery and primary school shall be to meet

the stated objective for the establishment of the school. The methods will

comprises the following

• Game play

• Role play

• Symbols and model

• Use of counting Materials etc.

MANAGEMENT TEAMS

� School Management Structure

The Management structure of Superior Nursery and Primary school is made

up of a Governing Board and Trust Council comprising of 5 members who

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have agreed to pool resources together for the establishment of the school

and are committed to the development of education in the country.

The Governing Board and Trust Council determine policies and formulate

broad policy guidelines for the day-to-day running of the school under the

leadership of the school Proprietress (Miss Adegbooye Tolulope).

� School Administration

Mr Bodunrin Samuel is the school's Executive Director, while Miss

Adegbooye Tolulope is the Proprietress. In between them, they oversee the

day-to-day administration and general supervision of the school. In addition,

they ensure a faithful implementation of the Government's current Universal

Basic Education Programme as it affects Primary Schools.

� Headmistress

The Head-Teacher is the coordinator of all the teaching and non-teacher staff

of Superior Nursery and Primary school. The Head-Teacher is responsible to

the Proprietress of the school. As head-Teacher, He manages and supervises

all operational inputs of all the teaching and non-teaching staff of the school.

� Staffs

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The Staff, made up of both teaching and non-teaching, are supervised by the

Head-Teacher. All staff of Superior Nursery and Primary school is regarded

as members of one happy family and they are recruited strictly on basis of

merit. They are well remunerated much above the prevailing rate in the

industry. This is one of the factors responsible for the high staff morale and

motivation. The school also invests in staff training and development to

enhance professional growth and career development.

FINANCIAL

� SOURCES AND USES OF FUNDS STATEMENT

Funds will be provided via bank loans as well as contributions by the

partners. In specific terms, twenty million naira (N20, 000, 000) will be

sourced in bank loans while eight million naira (N8, 000, 000) will be

provided by the partners (each contributing twenty million naira) to give a

total of two hundred and fifteen million naira. These funds will in turn be

used to finance the expenditures of the school.

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CASH FLOW

38,400,000

42,240,000

46,464,000

52,039,680

58,284,442

1 2 3 4 5

Income Projection

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EXIT PLAN

The appraisal techniques used in analyzing the viabilities of this project

shows that the project is worth investing on. However, if peradventure after

the 5th year of the cost and revenue projected, the business failed to yield a

substantial amount of revenue needed to keep it as a going-concern, the

following will be our exit plan:

• The school building will be converted to a shopping mall, since there

is no single shopping mall in the area. Residents; both students and

workers travel down to Bodija area whenever they need to shop. The

establishment of this mall in the locality will serve as a means to shop

closer to home even at almost the same rate as shopping malls at far

8,624,864

19,994,371.20

39,199,424.96

57,627,284.77

75,828,982.22

1 2 3 4 5

Profit Projection

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away Bodija. This we viewed from our survey will be viable and

lucrative.

• The assembly hall will be converted to an event centers where

different services such as viewing centers, event halls etc. will be

rendered.

• The school bus and other assets will be sold to generate income for

funding the event centre.

REFERENCE

1) KAYODE M.O (1979): The Art of Project Evaluation. Ibadan University

Press, Ibadan.

2) DAVID B. EKPENYONG (1993): Fundamentals of Project Analysis: An

Integrated Approach. Heinemann Education Books, (Nigeria) Plc.

3) ALAN THOMPSON (2005): Business Feasibility Study Outline.