Payroll Cycle
Minumum Wage
Overtime Pay
Visa Immigration

Talent Wiki - Nigeria

Your quick guide on talent and labor compliance norms in Nigeria
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Capital
Abuja
Currency
Nigerian Naira
Languages
English, Hausa, and Yoruba
Payroll Frequency
Monthly, Bi-weekly, or weekly
GDP per Capita
2,400 USD
Employer Tax
10-12%

Supplementary Guide for Employment and Expansion in Nigeria

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

Local Universities

The top local universities in Nigeria are as follows:

University of Lagos

RANKING

Local: 1

World : 2722

University of Nigeria

RANKING

Local: 2

World : 2747

University of Ibadan

RANKING

Local: 3

World : 3037

Obafemi Awolowo University

RANKING

Local : 4

World : 3646

University of Port Harcourt

RANKING

Local : 5

World : 4042

Salary Data

Below are monthly salary ranges for jobs positions in Nigeria

No. Job Title Salary Range (in Local Currency) Salary Range (in USD)
1 Accounting Manager 504,000 1214.11
2 Financial Manager 692,000 1666.99
3 Business Analyst 422,000 1016.57
4 Project Manager 387,000 932.26
5 Customer Service Representative 126,000 303.53
6 Developer/Programmer 313,000 754.00
7 Sales Manager 599,000 1442.96

Talent Sourcing Tips

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.

Top Local Job Boards:

LinkedIn, Glassdoor, Jobberman, Delon, Career24

Number of LinkedIn users:

6,300,000

Top Recruitment Agencies:

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

Employing 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 Years Day Public Holiday
3 Jan Day off for New Years Day Public Holiday
15 Apr Good Friday Public Holiday
18 Apr Easter Monday Public Holiday
1 May Workers’ Day Public Holiday
2 May Day off for Workers’ Day Public Holiday
2 May Id el Fitr Public Holiday
3 May Id el Fitr Holiday Public Holiday
12 Jun Democracy Day Public Holiday
13 Jun Day off for Democracy Day Public Holiday
10 Jul Id el Kabir (Tentative Date) Public Holiday
11 Jul Id el Kabir additional holiday (Tentative Date) Public Holiday
30 Jul Al-Hijra (Tentative Date) Local Holiday
20 Aug Isese Day Local Holiday in Osun
1 Oct National Day Public Holiday
3 Oct Day off for National Day Public Holiday
8 Oct Id el Maulud (Tentative Date) Public Holiday
10 Oct Day off for Id el Maulud (Tentative Date) Public Holiday
22 Dec Sambisa Memorial Day Local Holiday in Borno
25 Dec Christmas Day Public Holiday
26 Dec Boxing Day Public Holiday
27 Dec Day off for Christmas Day Public Holiday

Payroll

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.

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Health Examination Clause

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.

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Taxes

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.

Offboarding & Termination

Termination Process

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

Notice Period

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

Severance Pay

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.

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:

Type of Visa Visa Purpose
Temporary Work Permit For short-term technical projects (e.g., installation, maintenance, repairs, and more). This visa allows a person to work in Nigeria for 90 days.
Expatriates Quota (For Businesses) The expatriate quota in Nigeria is the Minister of Interior Affairs' clearance for foreign-owned or indigenous enterprises to employ or recruit foreign workers or directors to work and reside in Nigeria.
Subject to Regularization (STR) Visa This visa is for Nigerian expats working for people, companies, or the government. It enables entry into Nigeria but requires regularization once there. Once regularized, the foreigner gets his CERPAC/Green Card.
Combined Expatriate Residence Permit and Aliens Card (CERPAC) This visa allows foreigners to work in Nigeria for 90 days to a year. Host enterprises must have an approved expatriate quota to qualify for a CERPAC.
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