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The short answer
Creches and daycare centres in Nigeria are approved and supervised by the state, not by CAC alone. In Edo State, for example, the Ministry of Social Development and Gender Issues registers and monitors creches, and operators must show a registration certificate, proof of annual renewal and yearly activity reports. Our labelled budget for a 15-child centre comes to about ₦5.6 million, and the numbers only work once enough children are enrolled to cover caregivers, food and power.
Approvals: who signs off
Registering a business name with CAC lets you trade and open a business account, but it does not approve you to care for children. That approval comes from your state government. Which ministry handles it varies: in some states it is social development or women's affairs, and where a creche sits inside a nursery or primary school, the education ministry may also be involved.
Edo State gives a clear example. In October 2021 the state said its Ministry of Social Development and Gender Issues is authorised to register, supervise and monitor creches and similar facilities. Operators were told to obtain a registration certificate, renew it every year and submit yearly activity reports, and a State Enforcement Team was set up to monitor and shut down defaulters. The notice did not publish fees or staff ratios.
Before you sign a lease, visit your state's social development ministry and ask, in writing, for:
- The registration form and list of documents
- The fees and how often renewal is due
- Minimum space, toilet and kitchen standards
- Staff qualifications and any caregiver-to-child ratios
- Whether the premises will be inspected before approval
- Whether the local government has a separate permit
Space, safety and staff
A good creche has separate areas for sleeping, play and eating, a nappy-changing space near a sink, a clean kitchen or food preparation area, and child-height toilets if you take toddlers. Ground-floor premises are easier and safer. Cover sockets, fix shelves to walls, fence any outdoor space, and keep medicines and cleaning products locked away.
Staff matter more than décor. Parents will ask who cares for their child, so hire caregivers with experience or early-years training, check references and guarantors, and train everyone in basic first aid. Keep a sign-in and sign-out register and release children only to adults named by the parent.
Records and routines parents will ask about
Good records protect the children and protect you. For each child, keep an enrolment form with the parents' contacts, a second emergency contact, allergies, medical conditions, the family doctor or clinic and the names of adults allowed to collect. Record every incident, however small, with the time, what happened and what was done, and tell the parent the same day. Write down when any medicine is given and by whom, and give medicine only with the parent's written instruction.
A simple daily routine (arrival, play, meals, naps, outdoor time, pick-up) makes staffing easier and reassures parents. Share a short daily note or photo update if parents agree to it, and decide how you will handle images of children on social media: the safest default is not to post them. If the state asks for yearly activity reports, as Edo does, these records are what you will draw on.
Example start-up budget
Figures are an example for a 15-child centre, not quotes. State approval fees are not included because we could not confirm them.
| Item | Example cost (₦) |
|---|---|
| Rent, one year upfront | 2,400,000 |
| Renovation and child-safe fittings | 800,000 |
| 15 cots and sleeping mats at ₦30,000 | 450,000 |
| Toys, books and play equipment | 400,000 |
| Kitchenette, fridge and utensils | 350,000 |
| First aid supplies | 50,000 |
| CCTV for parents' peace of mind | 300,000 |
| Inverter or generator | 800,000 |
| CAC business name (May 2025 schedule) | 20,000 |
| Total | 5,570,000 |
Fees and break-even: two worked months
Example only. Monthly fee ₦50,000 per child, parents supply nappies and formula.
| 15 children | 20 children | |
|---|---|---|
| Fees | 750,000 | 1,000,000 |
| Caregivers at ₦70,000 | 3 = 210,000 | 4 = 280,000 |
| Cook or cleaner | 60,000 | 60,000 |
| Food | 150,000 | 200,000 |
| Power | 120,000 | 120,000 |
| Rent spread monthly | 200,000 | 200,000 |
| Total costs | 740,000 | 860,000 |
| Left over | 10,000 | 140,000 |
At 15 children the centre barely covers itself; at 20 it begins to repay the set-up. That is the usual shape of the business: fixed costs (rent, power, a minimum number of staff) are high, so enrolment decides everything. Ways to improve it include a registration fee per term, extended-hours charges, and an after-school session for older siblings.
What to check first
- Get the state's written requirements before signing a lease.
- Survey parents nearby: working hours, fees they pay now and what worries them.
- Write a parents' handbook: hours, late pick-up charges, illness policy, meals, fees and notice period.
- Plan fee collection: monthly or termly, with a clear due date.
- Register the business name and open a business account.
Our guide to setting private school fees covers fee reviews without losing parents.
Where Pryme fits
Parents pay by transfer. A Pryme Business Account offers invoicing for monthly or termly fees and payroll for caregivers. Schools are one of the Spaces sectors; ask whether your centre qualifies. For security, see CCTV installation costs.
Questions people ask
How much does it cost to start a creche in Nigeria?
Our labelled example for 15 children is about ₦5.57 million including a year's rent, renovation, cots, toys, a kitchenette, CCTV and power, before state approval fees.
Who approves daycare in Nigeria?
The state government. In Edo State it is the Ministry of Social Development and Gender Issues, which registers and monitors creches. Ask your own state which ministry applies.
How much do creches charge per month in Lagos?
Fees vary widely by area and hours. Our example uses ₦50,000 a month; survey centres near you before setting yours.
Can I run a daycare from my home in Nigeria?
Possibly, but you still need state approval and the premises must meet its standards. Check with your state's social development ministry before you start.
Sources
- Edo State Government: registration of creches and similar facilities, 9 Oct 2021 · accessed Oct 2026
- CAC New Schedule of Fees (Official Gazette No. 92, 29 May 2025) · 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.