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NAMES ADEGBOYE TOLULOPE ADELEKE ADEBOWALE BODUNRIN OLALEKAN SAMUEL OLUMIDE ABIMBOLA SHITTU WASIU OLAWALE
MATRIC 139085 139087 139170 139132 139142
SUBMITTED TO THE DEPARTMENT OF ECONOMICS, UNIVERSITY OF IBADAN, IBADAN. AUGUST 2011.
TABLE OF CONTENTS PART A: FEASIBILITY STUDY EXECUTIVE SUMMARY CHAPTER ONE Page 1.0 INTRODUCTION 1
1.1 1.2 1.3 1.4 1.5 1.6 1.7
Problem Statement Justifications of the Project Objectives of the Project Possible impact of the Project on Ajibode community Methodology of the study Scope of Project List of figures and tables
1 2 3 4 6 6 7
CHAPTER TWO 2.0 MARKET FEASIBILITY
2.1 2.2 2.3 2.4 2.5
Market Research The potential Market Area The Potential Customers Our Competitors Advertisement and Awareness
8 9 9 10 10
CHAPTER THREE 3.0 3.1 3.2 3.3 3.4 3.5 TECHNICAL FEASIBILITY Location and Site of the School Justification for the choice of the Location School Buildings and Facilities Pre-School Equipment and Teaching Aids Human Resources Requirements 12 12 13 14 15 15
3.5.1 List, Qualifications and Responsibilities of Personnel CHAPTER FOUR 4.0 LEGAL AND ENVIRONMENT FEASIBILITY
20 20 21 23 28 33 33
4.1.1 The National Policy on Pre-Primary Education 4.1.2 The Universal Basic Education (UBE) Programme 4.2 4.3 4.4 Operating Requirements from Oyo state Ministry of Education Partnership Deed Registration of the school
4.4.1 Registration with the Ministry of Education
4.4.2 Registration with National Association of Proprietors of Private School (NAPPS) CHAPTER FIVE 5.0 5.1 5.2 5.3 5.4 5.5 FINANCIAL FEASIBILITY Key Assumptions Basis for Financial Analysis and Projections Financing Plan Financial Items and Costs Operating Costs 34 35 39 39 41 33
CHAPTER SIX 6.0 6.1 ECONOMIC FEASIBILITY Appraisal Techniques 47 47 49
6.1.1 Non-discounted Appraisal Techniques 6.1.2 Discounting Appraisal Techniques
CHAPTER SEVEN BUSINESS DESCRIPTION PAGE Industry The School Our Services • Primary education • Nursery School School Procedures School fees THE MARKET
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
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
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.
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
ways without neglecting profitability. But before we venture into this investment opportunity, it is necessary that we do its proper assessment.
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
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.
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%
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.
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;
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 wellbeing 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.
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
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
From a social angle, educational attainments will foster a reduction in crime rates, Better human relations and Good governance.
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.
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.
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
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)
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.
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
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.
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
to tap into these opportunities, but unfortunately many of the schools in this area are of lower standard.
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
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)
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 1 2 3 4 5 MEDIA Internet(School Website) Radio(Splash FM) Bill Board Posters Pamphlets TOTAL Quantity 1 COST 65,000 5000 36,000 4,500 2,500 113,000
3 @12000 Each 100 2000
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
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.
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.
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.
Figure 3.3.1: The School building plan
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
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 Unit Price(N) 1 Activity Mats 1,050 2 Activity Tables 3000 3 Art Centre 10,000 4 Art craft Accessories 3000 5 Audio Visual Carts 5,000 6 Pre-school Benches and Desks 3,000 7 Carts- Preschool 1,500 8 Children Rugs 3000 12 Classroom Storage 1,500 13 Cubbies 1,500 14 Cots and Mats 1,000 15 Computer Station 100,000 16 School Library 70,000 17 Multipurpose Laboratory 130,000 18 Dry Erase and Marker Boards 20,000 19 Children Reception Furniture 15,000 20 Rockers –Child 4,000 21 Toys- Educational 3,000 22 Swings 20,000 23 Slides 25,000 24 Merry-go-round 30,000 TOTAL Field Survey, Aug 2011. Names Quantity 4 4 1 2 15 Set 4 2 7 Classes 7 Classes 2 Classes 7 2 1 set 1 1 1 Total Price 4,200 12,000 10,000 3,000 10,000 45,000 6,000 6,000 10,500 10,500 2,000 100,000 70,000 130,000 140,000 15,000 8,000 3,000 20,000 25,000 30,000 660,200
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
Medical staff Technical team Sport Coordinator Auxiliary Staffs Nursery Assistants Bus drivers Security Men Gardener Cleaners
Figure 3.5.1: The School Organograms
MEDICAL /WELFARE TEAM
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.
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.
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.
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.
j) Nursery Assistants Qualification: at least Grade III
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.
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) 60,000 35,000 30,000 30,000 30,000 20,000 20,000 18,500 18,500 12,000 12,000 10,000 10,000 7,000 Total Monthly Salary (N) 60,000 35,000 210,000 30,000 30,000 20,000 40,000 18,500 18,500 24,000 24,000 20,000 10,000 28,000 568,000 Salary Per Annum (N) 720,000 420,000 2,520,000 360,000 360000 240,000 480,000 222,000 222,000 288,000 288,000 240,000 120,000 336,000 6,816,000
Head Mistress 1 Assistant Headmistress 1 Teaching Staffs 7 Secretary/PRO 1 Bursar/ Accountant 1 Librarian 1 Medical Staff 2 Technical Staff 1 Sport coordinator 1 Nursery Assistants 2 Bus Drivers 2 Security Men 2 Gardener 1 Cleaners 4 26 TOTALS Field Survey, Aug 2011.
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;
(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,
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.
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 decisionmaking 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.
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).
Operating Requirements from Oyo state Ministry of Education REQUIREMENTS FOR THE ESTABLISHMENT OF
PRIVATE SCHOOLS i. ii. iii. iv. v. vi. The Proprietor/ Proprietress shall write a letter of intent. The Proprietor/ Proprietress shall attend an interview The Proprietor/ Proprietress shall obtain an application form Facilities inspection shall be conducted on the proposed school Based on the report of iv above, interim approval shall be given. 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.
On no account shall any Proprietor relocate or duplicate the school without due approval from the ministry of education.
Proprietors cannot operate schools (Annex) without satisfying all the necessary condition for the establishment of such schools.
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.
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) (ii) (iii) (iv) (v) (vi) (vii) Photograph of the proprietor(2) Photographs of the school building-whole. Left, right,& back views Photograph of each of the classroom Photographs of the pupil and teachers toilets (female/male). Photographs of the source of water and electricity. Photographs of recreational facilities. Photographs of adjacent buildings showing front, left side, right side and back views.
ESTABLISHMENT OF NURSERY SCHOOL FACILITIES (i) (ii) It shall be free from any type of danger to lives of the children and staffs It shall be free from heavy traffic, factory and deports where inflammable materials are kept. (iii) (iv) It shall be securely fenced round for safety of the children. 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) (x) Arrangement of classroom shall encourage free movement. The administrative block shall consist of the following: a. Books in reading corners
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.
Each teacher shall be assisted by a Nursery Assistant (at least Grade II). All the teaching staff shall register with teachers’ registration council of Nigeria (TRCN).
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) (ii) Provision of portable drinking water (tap, borehole or deep well). 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
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) (vii) At least one fire extinguisher should be provided in each block/building. Provision of good waste disposal system. Each class shall have a waste hand basin with disposal towels. RECREATIONAL FACILITIES & SPORTS (i) (ii) There shall be 9m x 15m space for activities. 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.
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) (iii) (iv) (v) (vi) There shall be at least a block of six classrooms The classroom dimension shall be 7.75m x 7m or 9.0m x 8.0m. Games field shall be provided (9m x 15m) Each class shall not hold more than 30 pupils, There shall be enough classrooms for the number of children to avoid overcrowding. FACILITIES (i) (ii) The dual desk of 1.2m x 760mm shall be provided. The bench shall be 1200mm x 880mm x 260mm.
LIBRARY RESOURCE UNIT (i) Functional library /reading room.
The library should have a minimum dimension of twice size of a classroom.
STAFFING (ii) (iii) There shall be a minimum of an NCE graduate teacher per class. 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.
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
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.
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.
8. That the Profits & Losses shall be divided among and borne by parties hereto in the following proportions:
Partner Miss. ADEGBOYE TOLULOPE Mr. ADELEKE ADEBOWALE Mr. BODUNRIN OLALEKAN SAMUEL Miss. OLUMIDE ABIMBOLA Mr. SHITTU WASIU OLAWALE
% of share in Profits and Losses 20% 20% 20% 20% 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.
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.
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.
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:
WITNESS SIGNATURE ---------------------
PARTNERS Miss. ADEGBOYE TOLULOPE
Mr. ADELEKE ADEBOWALE
Mr. BODUNRIN OLALEKAN SAMUEL
Miss. OLUMIDE ABIMBOLA
Mr. SHITTU WASIU OLAWALE
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.
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
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.
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
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 Motor Vehicle Plants and Machinery Furniture’s and Fittings
5% 15% 10% 10%
Table 5.2: FIXED COSTS
BREAK DOWN OF KEY COST ELEMENT N N
LAND AND BUILDING: LAND ( 3 PLOTS) @ N850,000/plot DEVELOPMENT INCLUDING DRAINAGE, LANDSCAPING,FENCING AND OTHER DEVT & SCHOOL BUILDING 18,350,000 15,800,000 2,550,000
PLANTS AND MACHINERY: PRE-SCHOOL EQUIPMENT & TEACHING AIDS BORE HOLE DIGGING STAFF COMPUTER 5 @ N40,000 Each PRINTERS 3 @ 9000 Each 660,200 250,000 200,000 27,000
100 KVA GENERATOR @
FURNITURES AND FITTINGS: OFFICE FURNITURE CEILING FANS 20 @ 2,000 Each 1,500,000 40,000
AIR CONDITIONS 5@ 50,000 Each OTHERS
250,000 500,000 2,290,000
MOTOR VEHICLE: School Bus 1 @ N4m 1,500,000 1,500,000
OTHER COSTS .SALARIES:
ACADEMIC STAFFS NON-ACADEMIC STAFFS AUXILIARY STAFFS 6,816,000
3,660,000 per yr. 1,884,000 per yr. 1,272,000 per yr.
ADVERTISEMENT: INTERNET(SCHOOL WEBSITE) RADIO(Splash FM) BILL BOARD POSTERS PAMPHETS 113,000 65,000 5,000 36,000 4,500 2,500
MISCELLANEOUS 1,000,000 -----------------TOTAL 31,756,200
Table 5.3: BREAK DOWN OF REVENUE ELEMENTS Classes Age No Children of School fees Child term Baby Class 02years Old 20 30,000 600,000 1,800,000 Total fee per Total / Class in fees per
class for 3 terms, (i.e a year)
Nursery 1 3 years 25 Old Nursery 2 4 years 25 Old Primary 1 5 years 30 Old Primary 2 6 years 30 Old Primary 3 7 years 30 Old Primary 4 8 years 30 Old Primary 5 9 years 30 Old TOTALS 220
N 20,000,000. 8,000,000 28,000,000
LONG TERM LOAN EQUITY CONTRBUTION TOTAL
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.
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 ASSETS CAPITAL ITEMS IN YEAR ZERO COST (N)
LAND SCHOOL BUILDING PLANTS AND MACHINERY FURNITURES AND FITTINGS
2,550,000 15,800,000 1,187,200 2,290,000
MOTOR VEHICLE (SCHOOL BUS) 1,500,000
TABLE 5.5.2 ANNUAL
ANNUAL DEPRECIATION OF FIXED ASSETS DEPRECIATION OF
FIXED ASSETS ITEMS YEA RS LAND 0 0 0 0 0 0 1 2 3 4 5 TOTA L 0
BUILDING 0 5%
790,000 790,000 790,000 790,000 790,000 3,950,0 00
PLANTS & 0 MACHINE RY 10% FURNITUR 0 E &
118,720 118,720 118,720 118,720 118,720 593,600
229,000 229,000 229,000 229,000 229,000 1,145,0 00
FITTINGS 10% MOTOR VEHICLE 15% 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 0 225,000 225,000 225,000 225,000 225,000 1,125,0 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 YEARS ITEMS YEARS 1 2 3 4 5 COSTS OF FIXED ASSETS OVER THE PROJECTED
2,550,00 0 15,010,0 00 1,068,48 0
2,550,00 0 14,220,0 00 949,760
2,550,00 0 13,430,0 00 831,040
2,550,00 0 12,640,0 00 712,320
2,550,00 0 11,850,0 00 593,600
PLANTS & 1,187,20 MACHINE RY FURNITUR E FITTINGS MOTOR VEHICLE 1,500,00 0 2,290,00 0
Table 5.6.1 shows the detailed breakdown of the operating costs, distributional expenses and administrative expenses etc. for the first year.
ESTIMATED OVERHEAD COST FOR
THE FIRST YEAR N SALARIES DIESEL & FUEL STATIONERY TOTAL 6,816,000 500,000 500,000 7816000
DEPRECIATION P & M 20% F & F @ 10% MOTOR VAN @ 15% BUILDING @ 5% TOTAL 225,000 790,000 1,362,720 118,720 229,000
DISTRIBUTION/OPERATION/ADMIN EXPENSES ADVERTISEMENT INSURANCE MAINTENANCE 113,000 2,000,000 3,000,000
REGISTRATION INT ON LOAN LOAN REPAYMENT TOTAL
Table 5.6.2 shows analysis of the position of the company over the projected years. TABLE 5.6.2 DETAILS INFLOWS BAL B/F FINANCIAL ANALYSES (INCOME STATEMENT) YEAR 0 N 0 YEAR 1 N YEAR 2 N YEAR 3 N YEAR 4 YEAR 5 N N
(327,200) 9,987,584 21,357,09 40,562,1 58,990,0 1.2 44.96 0 0 04.77 0 0
8,000,000 0 20,000,00 0 0
38,400,00 42,240,00 46,464,00 52,039,6 58,284,4 0 0 0 80 42
TOTAL INFLOW 28,000,00 38,072,80 52,227,58 67,821,09 92,601,8 117,274, 0 0 4 1.2 24.96 446.8
OUTFLOW CAPITAL EXPENDITURE LAND BUILDING 2,550,000 0 15,800,00 0 0 P&M F&F MOTOR VEHICLE SUB-TOTAL (A) 23,327,20 0 0 0 0 0 0 1,187,200 0 2,290,000 0 1,500,000 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
8,247,360 9,072,09 9,979,30 6 6
1,362,720 1,362,72 1,362,72 0 136,730 124,300 150,403 0 165,443. 3 2,420,000 2,662,00 2,928,20 2,200,000 0 0
ADVERTISEMEN 0 T INSURANCE 0
3,630,000 3,993,00 4,392,30 0 605,000 550,000 665,500 0 732,050
REGISTRATION COST INTEREST LOAN LOAN REPAYMENT
ON 3,000,000 1,500,000 0 0
10,000,00 10,000,00 0 0 0
FUEL & DIESEL MISCELLEOUS
1,500,000 1,500,000 1,650,000 1,815,000 1,996,50 2,196,15 0 0
5,000,000 27,291,72 27,234,62 18,821,81 20,567,7 22,488,2 0 0 0 19 19
TOTAL OUTFLOW(A B) PROFIT/(LOSS) BEFORE TAX Deduct TAX 20%
28,327,20 27,291,72 27,234,62 18,821,81 20,567,7 22,488,2 + 0 0 0 0 19 19
10,781,08 24,992,96 48,999,28 72,034,1 94,786,2 0 4 1.2 05.96 27.77
2,156,216 4,998,592 9,799,856 14,406,8 18,957,2 .8 .24 21.19 45.55
PROFIT AFTER 0 TAX ADD DEPRECIATION NET FLOW 0
8,624,864 19,994,37 39,199,42 57,627,2 75,828,9 1.2 4.96 84.77 82.22
1,362,720 1,362,720 1,362,720 1,362,72 1,362,72 0 0
CASH (327,200) 9,987,584 21,357,09 40,562,14 58,990,0 77,191,7 1.2 4.96 04.77 02.22
Table 5.6.3 shows the summary of the net cash flows. TABLE 5.6.3 NET CASH FLOW YEAR 0 1 2 3 4 5 INFLOW 38,072,800 52,227,584 67,821,091.2 92,601,824.96 117,274,446.8 367,997,747 OUTFLOW 28,327,200 27,291,720 27,234,620 18,821,810 20,567,719 22,488,219 144,731,288 NETFLOW (28,327,200) 10,781,080 24,992,964 48,999,281.2 72,034,105.96 94,786,227.8
SUPERIOR NURSERY AND PRIMARY SCHOOL BALANCE SHEET
SET 2,550,000 15,800,000 2,550,000 15,800,000 2,550,000 15,800,000 2,550,000 15,800,000 2,550,000 15,800,000 2,550,000 15,800,000
1,187,200 2,290,000 1,500,000
1,187,200 2,290,000 1,500,000
1,187,200 2,290,000 1,500,000
1,187,200 2,290,000 1,500,000
1,187,200 2,290,000 1,500,000
1,187,200 2,290,000 1,500,000
preciation 23,327,200 21,964,480 20,601,760 19,230,040 17,876,320 16,513,600
SET 5,000,000 15,660,384 28,392,2611.2 47,969,384.96 67,750,964.77
nk 5,000,000 15,660,384 28,392,2611.2 47,969,384.96 67,750,964.77
SETS(B) 28,327,200 37,624,864 57,994,371.2 67,199,424.96 85,627,284.77
rued 10,000,000 10,000,000
28,000,000 36,624,864 47,994,371.2 67,199,424.96 85,627,284.77 103,828,98
uity 20,000,000 10,000,000 0 0 0 0
28,000,000 36,624,864 47,994,371.2 67,199,424.96 85,627,284.77 103,828,98 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. 2. 3. Make provision for sufficient incentives for the producers. Make use of the least cost method of production Make available sufficient funds to maintain project operation without any stoppage
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. 2. 3. Identification and quantification of cost and benefits. Valuation of the cost and benefits. 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.
Although there is no single best method, hence, methods utilized in this feasibility report are as: (A) Non-discounted Appraisal Techniques
1 Payback Period. 2 Return on Investment (a) Rate of return (b) Average rate of Return
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
0 1 2 3 4 5
38,072,800 52,227,584 67,821,091.2 92,601,824.96 117,274,446.8
28,327,200 27,291,720 27,234,620 18,821,810 20,567,719 22,488,219
(28,327,200) 10,781,080 24,992,964 48,999,281.2
(28,327,200) (17,546,120) 7,446,844 56,446,125.2
72,034,105.96 128,480,231.2 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
(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
223,266,459 × 100 144,731,288
RR = 154.3%
Interpretation: This shows that the total rate of return on total investment is 154.3%.
(b) AVERAGE ANNUAL RATE OF RETURN
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
223,266,459 100 × 144,731,288 5
ARR = 30.9%
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).
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.
Benefit / Cost − Ratio =
∑ (1 + r )
∑ (1 + r )
Where Bt = Gross Benefit Ct =Gross Cost r = rate of return t= time in years
TABLE 6.2: COST BENEFIT CALCULATIONS
Discount factor @15%
Discount factor @15%
Present Value of Cost 15%
of Benefit @ 15% 0 33,106,782.61 39,491,556.9
0 1 2 3 4 5
0 38,072,800 52,227,584 67,821,091.2
1 0.8695652 0.7561437
28,327,200 1 27,291,720 0.8695652 27,234,620 0.7561437
28,327,200 23,731,930.43 20,593,285.44
18,821,810 0.657516232 12,375,645.6 20,567,719 0.571753245 11,759,660.09 22,488,219 0.497176735 11,180,619.31 107,968,341
92,601,824.96 0.571753245 52,945,393.97 117,274,446.8 0.497176735 58,306,126.59 228,443,328.44
Benefit / Cost − Ratio =
∑ (1 + r )
∑ (1 + r )
228,443,328.44 = 2.116 107,968,341
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.
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.
a IRR = A + ( B − A) a − b
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 NPV @15% factor @15% Discountin g factor NPV @25%
(28,327,200) 1 10,781,080 0.86956521 7
9,374,852.174 0.8000000 0 18,898,271.45 0.6400000 0 32,217,822.75 0.5120000 0 41,185,733.83 0.4096000 0 47,125,507.26 0.3276800 0 120,474,987.4 6
15,995,496.9 6 25,087,631.9 7 29,505,169.8
48,999,281.2 0.65751623 2
72,034,105.9 0.57175324 6 5
94,786,227.8 0.49717673 5
31,059,551.1 3 81,945,513.8 6
120,474,987.46 IRR = 0.15 + (0.25 − 0.15) 120,474,987.46 − 81,945,513.86 120,474,987.46 IRR = 0.25 38,529,473.54 IRR = 0.25[3.127 ] IRR = 0.78
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.
NPV = ∑
Bt − Ct (1 + r ) t
NET PRESENT VALUE TECHNIQUES YEAR NET FLOW 0 1 2 3 4 (28,327,200) 10,781,080 24,992,964 48,999,281.2 CASH DF @ PRESENT 15% 1 VALUE (28,327,200)
0.8696 9,375,227 0.7561 18,897,180 0.6575 32,217,027
72,034,105.96 0.5718 41,189,102
5 NET PRESENT VALUE
0.4972 47,127,712 120,479,048
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.
TABLE 6.5 PROJECTED ECONOMIC CASH FLOW FROM YEARS (0-5) DETAILS CASH INFLOW BALANCE GROSS PROFIT SCHOOL FEES TOTAL INFLOW 0 0 38,400,000 13,072,800 42,240,000 46,464,000 52,039,680 58,284,442 YEAR 0 N YEAR 1 N YEAR 2 N YEAR 3 N YEAR 4 N YEAR 5 N 86,851,491
(25,327,200) (1,356,200) 25,011,900 54,016,810
40,883,800 71,475,900 106,056,490 145,135,933
CASH OUTFLOW CAPITAL EXPENDITURE LAND BUILDING P&M F&F 2,550,000 15,800,000 1,187,200 2,290,000 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
MOTOR VEHICLE SUB TOTAL A
OPERATING EXPENSES SALARIES 0 6,816,000 113,000 2,000,000 3000,000 500,000 550,000 REGISTRATION COST FUEL & DIESEL MISCELLEOUS SUBTOTAL B TOTAL OUTFLOW (A+B) 0 1,500,000 2,000,000 25,327,200 500,000 1,500,000 14,429,000 14,429,000 550,000 1,650,000 605,000 1,815,000 665,500 1,996,500 732,050 2,196,150 21,125,499 21,125,499 500,000 7,497,600 8,247,360 124,300 136,730 2,200,000 2,420,000 3,300,000 3,630,000 605,000 9,072,096 150,403 2,662,000 3,993,000 665,500 9,979,306 165,443.3 2,928,200 4,392,300 732,050
ADVERTISEMENT 0 INSURANCE MAINTENANCE STATIONERY 0 0 0
15,871,900 17,459,090 19,204,999 15,871,900 17,459,090 19,204,999
/ (25,327,200) (1,356,200)
25,011,900 54,016,810 86,851,491
SUPERIOR NURSERY AND PRIMARY SCHOOL …quality education for a better life
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
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 nonteaching 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.
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 fullfledged 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
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 preprimary 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
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
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:
• Mathematics • English • Social Studies • Health Education • Computer Science • Elementary Science • French Language
• Indigenous culture and traditions • Yoruba Language • Moral instruction • Christian Religious Knowledge • Physical and Health Education • Handwriting • 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
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
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
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-ofterm 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
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.
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
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
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.
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
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
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
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
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.
58,284,442 52,039,680 46,464,000 42,240,000 38,400,000
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
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.