Hire employees
and contractors in Nigeria

Capital city
Abuja
Currency
Nigerian naira
Population size
206,139,589
Language spoken
English
01

Grow your team in Nigeria with Remote

Remote currently offers contractor payment and management services in Nigeria. We are busy building our own entity in the country to provide you with best possible employment solutions for your employees.

  • Capital city
    Abuja
  • Currency
    Nigerian Naira
  • Language spoken
    English
  • Population size
    206,139,589
  • Ease of doing business
    Medium
  • Cost of living index
    29.74
  • Payroll frequency
    Monthly/Biweekly/ Weekly
  • VAT - standard rate
    7.5%
  • GDP - real growth rate
    2.2%
02

Facts & stats

With a population of more than 200 million people, Nigeria is one of the top ten most populous nations on Earth. A member state of the African Union and home to Africa’s largest economy, Nigeria has a wealth of skilled workers, especially in tech. Lagos, Nigeria’s largest city, has been called “the Silicon Valley of Africa.” In addition, Nigeria is home to a thriving film industry, known as Nollywood.

Nigeria Map
Nigeria risks illustration

Risks of misclassification

Nigeria, like many other countries, treats self-employed contractors and full-time employees differently. Misclassification of contractors in Nigeria may lead to fines and penalties for the offending company.

03

Employing in Nigeria

Nigeria recognizes two classes of workers. There are “workers,” who usually perform manual or administrative labor, and “employees,” who perform work that requires additional training or education. Different laws and regulations apply to each group. For workers of all types, it is best for companies to draft written employment contracts to ensure both sides understand the terms of the arrangement.

If you are looking to employ workers in Nigeria, contact Remote to learn about your options.

Public holidays

Date Holiday Name Extra information
New Year's Day
Good Friday
Easter Monday
Workers’ Day
Eid al Fitr
Id el Kabir
Independence Day
Id el Maulud
Christmas Day
Boxing Day
Minimum
Wage

In Nigeria, the minimum wage is 30,000 nairas per month.

Payroll
Cycle
For customers of Remote, all employee payments will be made in equal monthly instalments on or before the last working day of each calendar month, payable in arrears.
04

Competitive benefits package in Nigeria

Beyond providing your employees with all statutory benefits in Nigeria, Remote can help you create a custom benefits package for your Nigerian team. A competitive benefits package may include perks such as:

  • benefits list
  • benefits list
  • benefits list
  • benefits list
  • benefits list
  • benefits list
  • benefits list
  • benefits list
05

Taxes in Nigeria

Learn how employment taxes and statutory fees affect your payroll and your employees’ paychecks in Nigeria.

  • Employer

    • 10% - Pension Fund
    • 10% - Health Insurance
    • 1% - Workers’ Compensation
  • Employee payroll taxes

    • 8% - Pension Fund
    • 5% - Health Insurance
    • 2.5% - National Housing Fund (NHF)
  • Employee Income Tax

    • 7% (Income up to NGN 300,000)
    • 11% (NGN 300,000-600,000)
    • 15% (NGN 600,000-1.1 million)
    • 19% (NGN 1.1 million-1.6 million)
    • 21% (NGN 1.6 million-3.2 million)
    • 24% (Above NGN 3.2 million)
06

Types of leave

Statutory
leave

Employees in Nigeria are entitled to six paid days off per year after working for the same employer for 12 months. Employers may allow employees to roll unused time to the next year, but all accrued leave must be taken within two years. Employers may not pay employees a bonus in lieu of providing actual time off. Employees are entitled to payout of unused time at the end of an employment relationship.

Pregnancy and
maternity leave

Expecting mothers in Nigeria are entitled to 12 weeks of maternity leave paid at 50% of their average salary. Mothers may begin taking leave six weeks prior to their due date.

Partner/paternity
leave

Nigeria’s government does not provide guarantees of paternity leave for workers. However, certain areas (including Lagos) may require employers to offer paternity leave. Nigerian law does not recognize LGBTQ+ relationships.

Sick
leave

Workers in Nigeria are entitled to 12 sick days per year. Employers may require employees to provide proof of illness from a medical services provider.

07

Employment
termination

Termination process

Nigeria is one of a few “at-will” employment countries. Employers are not required to provide employees with a reason for termination and may end the employment relationship at any time.

Notice period

While employers in Nigeria are not required to provide reasoning for terminations, they are usually required to provide employees with advance notice. Notice periods vary depending on the tenure of the employee:

  • One day for employees with less than three months of service
  • One week for employees with three months to two years of service
  • Two weeks for employees with two to five years of service
  • One month for employees with more than five years of service

Collective bargaining agreements or employment contracts may alter these notice terms.

Severance pay

Nigerian law does not mandate severance pay for terminated workers. Collective bargaining agreements or employment contracts may require severance pay, though.

Probation periods

Nigeria does not have laws governing the length of probationary employment periods.

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