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Africa

Nigeria

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Employer of Record (EOR) in Nigeria

What you'll learn

  • Country Introduction
  • Tax Breakdown for Employers
  • Statutory Leave Laws
  • Minimum Wage and Working Hours
  • Termination Process
  • Additional Information
Nigeria Introduction

Nigeria is a country in west Africa bordered by Niger, Chad, Cameroon, and Benin. It is a multinational state with 250+ ethnic groups that speak 500 distinct languages. Nigeria is one of the 10 most populated countries in the world, and boasts a plethora of skilled tech workers. Lagos is the largest city in Nigeria and has been called “the Silicon Valley of Africa.”

Paid Leave and Statutory Leave

Parental Leave

Pregnant employees are entitled to 12 weeks of paid maternity leave, which is paid at 50% of their average wage. The leave usually begins 6 weeks before the due date. While there is no provision in Nigerian law for paternity leave, some regions do offer it.

Sick Leave

Employees in Nigeria are entitled to 12 days of sick leave per year.

Paid Leave

Nigeria has 13 public holidays, and employees who have worked at their company for 12 months are entitled to 6 days of paid time off each year.

Wage Requirements and Working Hours

The minimum wage is NGN 30,000 per month, and the standard workweek is 40 hours per week at 8 hours per day. Overtime is regulated based on the employment contract.

Termination Process

Process

The termination process in Nigeria varies based on the employment contract and collective agreements in place, as well as the reason for termination. Employment can be terminated by either the employer or the employee as long as notice is given.

Notice Period

Notice periods in Nigeria vary depending on how long the employee has worked at their company:

  • 0-3 months = 1 day of notice
  • 3 months - 2 years = 1 week of notice
  • 2-5 years = 2 weeks of notice
  • 5+ years = 1 month of notice

Severance Pay

Severance pay requirements are usually outlined in the employment contract/collective agreement.

Additional Information

N/A

OVERVIEW
Language(s):
English, Regional Languages
Currency:
Nigerian Naira (NGN)
Capital City:
Abuja
Population:
218 Million
Cost of Living Rank:
115th
VAT (Valued Added Tax):
7.5%
Employer TaxES
12%
(estimated)

★  10% - Pension Fund

★  1% - Social Insurance

★  1% - Industrial Training Fund (ITF)

Simplified Global HR and Payroll.
Let’s work on it together.

We've made the process really simple
with only 3 steps.

1

Remote candidate

You've sourced a full-time employee or contractor located in a country where your company is not incorporated.

2

Cost Calculation

Pass us the details of your candidate and we will let you know exactly what it costs to employ your candidate in that country.

3

Onboarding & Admin

Sit back and relax as we onboard your new team member and take care of all the local compliances and admin work.

Same-day onboarding
Best Pricing
Available in 150+ countries
How Remofirst employs in Nigeria

It can be prohibitively expensive to establish an entity in every country you want to hire talent in, so Remofirst will hire and pay your employee on your behalf while you manage their daily duties. Remofirst will handle formal HR procedures and employment contracts that adhere to local laws, so that you can simply approve invoices via our platform. When you work with an Employer of Record (EOR) you can compliantly hire the best employees around the world.

How employees in Nigeria get paid
Your employee's hours, time off, holidays, bonuses, and commissions are automatically calculated into payroll. Remofirst will invoice you in either US Dollars (USD), Euros (EUR), British Pounds (GBP), Canadian Dollars (CAD), or Singapore Dollars (SGD) around the 15th of each month to make sure your employees in Nigeria are paid on time in Nigerian Naira (NGN). To make it even easier, you can summarize your entire global team's salaries to aggregate them into one payment (instead of many individual payments).
Full-time Employees vs Global Contractors

Unlike full-time employees, contractors work on projects with multiple companies at a given time and are technically self-employed. Full-time employees are solely focused on their employer and usually receive benefits (such as health insurance, equity or stock options, and time off) as an additional form of compensation. While it can be cheaper to work with international contractors instead of paying benefits to a full-time employee, you run the risk of misclassification. It's recommended to work with an EOR for contractor onboarding and payments, so you can know that your international contractors are paid compliantly and on time.

Dependable support for employees
Whenever the employee or employer has a question about benefits, Visas, or anything else related to international employment in Nigeria, they can use our platform's chat function to get answers from our team of experts. Every client of Remofirst also receives a dedicated account manager that will serve as a point of contact for global HR support.