Your quick guide on talent and labor compliance norms in Nigeria
English, Hausa, and Yoruba
Monthly, Bi-weekly, or weekly
GDP per Capita
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
The top universities of Nigeria are as follows:
Below are average monthly salaries for jobs in Nigeria:
|Job Title||Average Monthly Salary (NGN)||Average Monthly Salary (USD)|
|Customer Service Representative||126,000||160|
In Nigeria, payroll is typically done once a month. Some businesses, however, use a weekly or biweekly payroll cycle.
The current minimum wage in Nigeria is about 30,000 Nigerian Naira per month.
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.
There are no legal requirements for 13th-month wage payments in Nigeria. On the other hand, Bonuses are frequent at the employer’s discretion.
|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|
|2.5%||National Housing Fund (For employees earning a minimum of 3,000 NGN per annum)|
|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|
Nigeria imposes a 7.5% VAT
Offboarding & Termination
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.
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:
Streamline payroll and compliance for your international workforce
|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.|