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The short answer
A full-time public officer in Nigeria may not take part in managing or running a private business, profession or trade, but the Constitution's Code of Conduct expressly allows farming. The Head of Service told federal civil servants in a June 2013 circular that breaking this is unconstitutional and counts as misconduct under the Public Service Rules.
Many civil servants look for extra income because a salary on a grade level does not stretch as far as it once did. The question is not whether you need the money but which kinds of earning the law allows while you hold a full-time public post. The answer comes from two places: the Code of Conduct for Public Officers in the Fifth Schedule of the 1999 Constitution, and the Public Service Rules that govern discipline in the service.
What the rule actually says
On 10 June 2013 the Office of the Head of the Civil Service of the Federation sent a circular titled Code of Conduct for Public Officers to all federal ministries, departments and agencies. It quoted Part I of the Fifth Schedule: a public officer shall not, except where he is not employed on a full-time basis, engage or participate in the management or running of any private business, profession or trade. The same paragraph adds that nothing in it shall prevent a public officer from engaging in farming.
The circular said the concern was that some public servants were engaging in private practice to the detriment of the services they were employed to render. It warned that failing to comply would be regarded as an unconstitutional act and as misconduct under the Public Service Rules.
The rules in force for the federal service are the Public Service Rules 2021, which the Federal Civil Service Commission cited as recently as August 2026 when warning against fake recruitment offers. Note also that the Labour Act is not the main source here: its definition of "worker" in section 91 excludes people exercising administrative, executive, technical or professional functions as public officers, so most civil servants' conditions come from the service rules, not the Act.
- Who is caught
- Public officers employed full-time. The circular was addressed to federal civil servants; state services have their own rules and the Code of Conduct applies to public officers generally.
- What is barred
- Managing or running a private business, profession or trade.
- What is allowed
- Farming, by express wording.
- Consequence
- Treated as misconduct under the Public Service Rules, with disciplinary action through the service.
Owning versus running
The wording targets management or running. That is why many lawyers distinguish between holding an investment and operating a business day to day. Buying shares on the stock exchange, holding a savings or investment product, or owning a stake you do not manage is a different activity from sitting at a shop counter, signing contracts as a director or practising a profession for fees. The circular itself does not discuss shares or directorships, so where your plan sits near the line, ask your ministry's legal or human resources unit in writing before you start.
Grey areas worth asking about
- Being a director of a company your spouse runs. Directors take part in management, which is what the rule restricts.
- Part-time lecturing or paid consulting. These look like practising a profession; some services grant permission case by case, so ask rather than assume.
- Selling online in your own name. Regular trading through a page or marketplace is running a trade, even if it is small.
- Renting out property you own. Receiving rent on an asset is closer to investment than running a business, but managing a guest house daily is not.
The farming exception in practice
Farming is the one activity named as permitted. Typical examples are poultry, fish ponds, crop farming on family land, or a share in a farm cluster. Two points keep it clean. First, the farm must not eat into official hours or use government vehicles, staff or premises. Second, keep the farm's money separate from your salary account so that its income and costs can be shown if anyone asks.
Declaring assets and avoiding conflicts
The Code of Conduct also requires public officers to declare their assets and puts limits on conflicts of interest and gifts. The exact timing and forms are set by the Code of Conduct Bureau, which administers declarations; we could not open the full Fifth Schedule text for this article, so check the current declaration requirements with the Bureau or your establishment office. Any farm, rental property or shareholding you acquire belongs on that declaration.
Conflict of interest matters as much as the business itself. A procurement officer who supplies the ministry through a relative's firm faces a far more serious problem than one who keeps goats at home.
Side income options that fit the rules
| Option | Why it is usually compatible | What to watch |
|---|---|---|
| Farming (crops, poultry, fish) | Expressly allowed by the Code of Conduct | No official time or government resources |
| Savings and investment products | Holding assets is not running a business | Declare assets; avoid insider positions |
| Rent from property you own | Passive income from an asset | Do not run a hotel or shortlet operation yourself |
| Spouse or adult relative runs a business you fund | You are not managing it | Stay off the board and the signatory list if unsure |
| Writing or teaching with written permission | Some services approve this case by case | Get approval in writing first |
Whatever you choose, the income is taxable. Under the Nigeria Tax Act 2025 bands summarised by BusinessDay in January 2026, the first ₦800,000 of chargeable income is taxed at 0% and the next ₦2.2 million at 15%, rising in steps to 25% above ₦50 million. Our guide to tax on side hustle income explains how extra income sits on top of PAYE, and the federal pay tables are in CONPSS salary by grade.
What to check first
- Confirm whether you are full-time; the restriction applies to full-time public officers.
- Read your service's current Public Service Rules or ask your establishment office which chapter covers outside work.
- If the plan is anything other than farming or passive investment, write to your head of department and keep the reply.
- Keep farm or investment money in a separate account and record income and costs.
- Update your asset declaration when you acquire something new.
Where Pryme fits
If you farm or hold investments alongside your job, keeping that money apart from your salary makes declarations and tax records simpler. A Pryme Personal Account can sit beside your salary account, Naira Savings Boxes can hold farm cash for a planned purchase, and you can generate a verifiable statement through VerifyDoc.ai when an officer or tax authority asks for proof. See Savings Boxes and verifiable receipts and statements.
Questions people ask
Can a civil servant own a business in Nigeria?
The Code of Conduct bars full-time public officers from managing or running a private business, profession or trade. Holding a passive investment is different from running a business, but check grey cases with your establishment office in writing.
Is farming allowed for civil servants?
Yes. The Fifth Schedule, as quoted in the Head of Service circular of 10 June 2013, says nothing prevents a public officer from engaging in farming.
Can a civil servant register a business name with CAC?
Registering is not banned in itself, but running the business is. Some officers register in a spouse's or adult relative's name and stay out of management; take advice if you will be listed as owner or director.
What happens if a civil servant runs a business?
The 2013 circular said it would be treated as an unconstitutional act and as misconduct under the Public Service Rules, which can lead to disciplinary action.
Sources
- Head of Service: You cannot engage in private practice except farming (circular, 10 June 2013) · accessed Oct 2026
- Nairametrics: FCSC warns Nigerians against fake recruitment messages (21 Aug 2026) · accessed Oct 2026
- Labour Act, Cap L1 LFN 2004 (PLAC Laws of Nigeria) · accessed Oct 2026
- BusinessDay: Nigeria Tax Act 2025 personal income tax bands explained (12 Jan 2026) · accessed Oct 2026
This article is general information, not financial, legal or tax advice. Products described are provided under the terms on this site and are subject to regulation and eligibility.