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Expand your global workforce in Nigeria

Your guide to the employment landscape, working customs and local labor laws in Nigeria.

Capital

Abuja

Currency

Nigerian Naira

Languages

English, Hausa, and Yoruba

GDP per Capita

$2,685

Employer Tax

10-12%

Payroll Frequency

Monthly, Bi-weekly, or weekly

Talent overview

Nigeria, the largest economy in Africa, is considered the 124th freest economy in the 2022 Index. The country has great potential for further growth as it is rich in resources, including oil, gas, and minerals. Furthermore, Nigeria has an emerging market, expanding in manufacturing, financial, service, communications, technology, and entertainment.

Major economic hubs:

Lagos, Kano, Ibadan

Skills in demand:

Digital Marketing, Sales, Engineering, Banking, Business Management, Customer Service, Software Development

Top local universities in Nigeria

Nigeria Uni1

University of Lagos

Ranking

Local: 1

World: 2533

Nigeria Uni2

University of Nigeria

Ranking

Local: 2

World: 3796

Nigeria Uni3

University of Ibadan

Ranking

Local: 3

World: 3856

Nigeria Uni4

Obafemi Awolowo University

Ranking

Local: 4

World: 3908

Nigeria Uni5

University of Port Harcourt

Ranking

Local: 5

World: 4002

Top Local Job Boards

LinkedIn, Glassdoor, Jobberman, Delon, Career24

Number of LinkedIn users

8,392,000

Top Recruitment Agencies

Kimberly Ryan, Oscar Temple, FMCG Search, Energi Talent Resourcing, Estrada International Staffing Solutions 

Where to find talent

Top Local Job Boards:

Number of LinkedIn users:

Top Recruitment Agencies:

Salary Data

Below are average monthly salaries for jobs in Nigeria:

Job Title Average Monthly Salary (NGN) Average Monthly Salary (USD)
Accounting Manager 504,000 639
Financial Manager 692,000 878
Business Analyst 422,000 535
Project Manager 387,000 491
Customer Service Representative 126,000 160
Developer/Programmer 313,000 397
Sales Manager 599,000 760

Employ in Nigeria

Employing in Nigeria

Nigeria is a country with great potential. The country has a large population, a low cost of living, and a young population. The country also has a large pool of educated and skilled workers. As a result, hiring in Nigeria has been a viable option for businesses looking to expand their operations into Africa. 

Here are some things to keep in mind when hiring workers in Nigeria.

Employee Contract

Nigeria is a country with many different languages, so employment contracts must be written. The agreement must specify the location of work, duties, working hours, and holidays. The employees must receive their contract within three months of starting their new job. By law, all employment contracts in Nigeria must be in writing and in the employee’s native language.

Public and Provincial Holidays

Date Name Type
1 Jan New Year’s Day Public Holiday
29 Mar Good Friday Public Holiday
1 Apr Easter Monday Public Holiday
10 Apr Id el Fitr (Tentative Date) Public Holiday
11 Apr Id el Fitr holiday (Tentative Date) Public Holiday
1 May Workers’ Day Public Holiday
12 Jun Democracy Day Public Holiday
17 Jun Id el Kabir (Tentative Date) Public Holiday
18 Jun Id el Kabir additional holiday (Tentative Date) Public Holiday
8 Jul Al-Hijra (Tentative Date) Local holiday
20 Aug Isese Day Local holiday
16 Sep Id el Maulud (Tentative Date) Public Holiday
1 Oct National Day Public Holiday
22 Dec Sambisa Memorial Day Local holiday
25 Dec Christmas Day Public Holiday
26 Dec Boxing Day Public Holiday

 

Leave Compliance

Payroll in

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Payroll cycle

In Nigeria, payroll is typically done once a month. Some businesses, however, use a weekly or biweekly payroll cycle.

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Minimum wage

The current minimum wage in Nigeria is about 30,000 Nigerian Naira per month.

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Overtime pay

There is no statutory limit on mandatory overtime or overtime pay. Overtime is to be paid for all work that exceeds the standard working hours specified in the employee and employer agreement. The overtime rate must be agreed upon by both the employer and the employee and must be included in the employment agreement.

How taxes work

Employer Payroll Tax:

Tax Rate Contribution
10% Pension
1% Industrial Training Fund (For employers having five or more employees, or less than 5 employees but has a turnover of 50 million NGN above)
1% National Social Insurance Trust Fund

Employee Payroll Tax:

Tax Rate Contribution
8% Pension
2.5% National Housing Fund (For employees earning a minimum of 3,000 NGN per annum)

Employee Income Tax

Nigeria follows a progressive rate:

Tax Rate Income Group
7% First 300,000 NGN
11% Next 300,000 NGN
15% Next 500,000 NGN
19% Next 500,000 NGN
21% Next 1,600,000 NGN
24% Above 3,200,000 NGN

VAT:

Nigeria imposes a 7.5% VAT

Bonus

13th Month Pay:

There are no legal requirements for 13th-month wage payments in Nigeria. On the other hand, Bonuses are frequent at the employer’s discretion.

Employee offboarding

The employment contract can be terminated at any time, for any reason, by either the employee or the employer.

The length of service determines the termination notice period.

Length of Service Termination Notice
3 months or less of service 1 day
More than 3 months but less than two years of service 1 week
2-5 years of service 2 weeks
More than 5 years of service 1 month

 

There is no provision in the Nigerian Labor Law for severance pay. The employer is not required to make any severance payments. Severance pay, on the other hand, may be specified in an employment contract or collective agreement.

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Visa and
immigration

Suppose your firm intends to hire in Nigeria. In that case, you must ensure that all of your workers have the necessary visas and permissions to live and work lawfully in Nigeria.

Nigeria’s immigration system offers several work visa options for those seeking employment in the country. The most common type of work visas are as follows:

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