Westminster Group enters 10-year franchise agreement in Nigeria
The new franchise agreement with investors in Nigeria is worth a minimum of £1.7 million in fees over the 10-year term of the agreement
Westminster Security Solutions Nigeria Ltd (WSSN) will be led by a Westminster-appointed manager and will operate as the company’s exclusive agent in Nigeria promoting all Westminster products and solutions.
Chief executive Peter Fowler said: "Nigeria is a key target market for our group services. It is one of the fastest growing economies in the world and Africa's most populous nation. We are currently looking at a number of sizeable project opportunities from the region and are receiving high levels of enquiries for our services from both the public and private sectors.”
The company is seeing substantial opportunities for its products and services in the oil & gas markets as well as other commercial sectors.
WSSN will open offices in several key cities and states in the near future with all the technical and administrative support services required, creating a strong presence throughout the country. This infrastructure will be funded by the franchisee.
"To be successful in many local markets we need to have a strong partner and a strong local presence. We are very optimistic about the future prospects for this operating structure and it is a model we are looking at replicating in other regions," Fowler added.
Last month, the Nigerian president signed off on the 2012 budget which has earmarked a US$5.8 billion equivalent on security spending – and Westminster is well placed to benefit from that.
On top of the franchise fees of over 1.7 million over the term, all business the franchise undertakes will be done using Westminster’s products and solutions, so will be generating potentially huge revenues for the group.
Only yesterday, Westminster announced a strategic investment to the tune of £500,000 from a new partner which is now looking to assist with the delivery of many of the group’s opportunities in West Africa.
It had also reported that initial revenue forecasts for its US$150 million+ airport security contract with an African country announced in February may have been too conservative, and the deal has the potential to generate substantially more revenue than anticipated.
Initial revenue forecasts for this contract were based on modest growth of passenger numbers and did not allow for additional revenues from cargo scanning and other services. In the light of new forecasts and planned extensions of airport services in this country, the initial forecasts look too conservative, according to Westminster.
Following the two month pre-implementation period, the group has commenced operations at the airport today. It has started to deploy new surveillance equipment, new procedures, new signage, and it launched a new ‘dog squad’ with explosives and drug detection dogs in operation within the airport.
The group's principal activity is the design, supply and ongoing support of advanced technology security solutions, risk assessments and close protection services. It serves the security, defence, fire protection and safety markets worldwide.
Services can range from product only assignments, such as the supply of specialised scanners, to the design and implementation of an integrated system solution such as a border detection and surveillance system. The majority of Westminster’s customer base, by value, comprises governments and government agencies, non-governmental organisations and blue chip commercial organisations