* Playroll continues to analyse immediate opportunities and fulfilled roles by recruitment partners, contractors and employers to identify in-demand jobs.

Capital City

Nigerian Naira (₦)


WAT (GMT +1)

Employment Cost

1% - 12%

Annual Leave

21 - 28 days

In-demand Specialties*
IT, Healthcare, Engineering

The Ultimate Guide to Hiring Employees in Nigeria

Simplify hiring employees in by partnering with Playroll. Our Employer of Record (EOR) handles hiring, onboarding, payroll, taxes, immigration, benefits administration, and compliance. While you maintain control of day-to-day tasks and responsibilities.


Key Considerations Before Hiring In Nigeria

Employing in Nigeria requires employers to own a legal entity in the country and manage payroll, tax, benefits and compliance through their own in-country resources. Grow your team in Nigeria with our Employer of Record solution, ensuring streamlined, compliant business expansion with no entity.

Playroll allows you to hire employee's in Nigeria quickly, easily and we even automate tax document collection, benefits, payroll and more.

Good To Know

Nigeria is one of the fastest-growing IT markets in Africa, and many Nigerian employees are comfortable using technology.

Nigeria is one of Africa’s fastest developing countries, making it an ideal starting point for exploring potential value in the African market.

Nigeria has a diverse workforce. Nigeria is a multi-ethnic and multi-religious country, and its workforce reflects this diversity.

Nigeria’s banking sector is becoming highly attractive to foreign investment as it is valued at over $9 billion and the country has more than 200 fintech companies.


Fundamental Aspects of Employment in Nigeria

In Nigeria, it is mandatory for both employer and employee to sign a written employment agreement. To be legally compliant, employment agreements must include the following information:

  • Names of the employer and employee
  • Employee’s address
  • Position title and description of work
  • Beginning date of employment
  • End date of employment, for a fixed-term contract
  • Notice period for termination
  • Salary, including frequency of payment
  • Work hours
  • Leave pay and conditions for incapacity due to illness or injury
  • Any special conditions

Probationary Period in Nigeria

The probation period in Nigeria is typically 3 to 6 months. However, there is no specific legal requirement for a probation period in Nigeria. The length of the probation period is usually specified in the employee's employment contract.

Working hours in Nigeria

Normal full time working hours are 40 hours per week. However, the Labour Act does not specify general working hours rather these are fixed by the mutual agreement or collective bargaining within the enterprise or industry.

Overtime in Nigeria

Employers in Nigeria can require their employees to work overtime, but they must pay their employees overtime pay for any hours worked in excess of the standard 40-hour workweek. Overtime pay is calculated at 1.5 times the employee's normal hourly rate.

Navigating Key Aspects of Payroll in Nigeria

Nigeria has a robust and complex payroll and tax system, and as an employer, it pays to understand payroll process basics.

1 January - 31 December

Fiscal Year in Nigeria

1 January - 31 December is the 12-month accounting period that businesses in Nigeria use for financial and tax reporting purposes.

Payroll Cycle in Nigeria

The payroll cycle in Nigeria is usually monthly, with employees being paid at the end of the month.
±187.5 NGN p/h

Minimum Wage in Nigeria

The minimum wage for employees in Nigeria is typically ±187.5 NGN per hour, amounting to ~30,000 NGN per month for a typical 40 hour work week.

Minimum wages and salaries in Nigeria

The national minimum wage in Nigeria is currently 30,000 NGN per month.

Bonus Payments in Nigeria

There are no statutory requirements for 13th-month salary payments. However, bonuses are common at the discretion of the employer.

Comprehensive Overview of Employment Taxes in Nigeria

Understanding the tax obligations for both employers and employees is crucial when operating in Nigeria's business landscape. This section explains how taxes and statutory fees affect payroll and individual earnings in Nigeria.

Employer Tax Contributions

Employer payroll contributions are generally estimated at an additional 1% - 12% on top of the employee salary in Nigeria.

Tax Rate Tax Type

Employee Payroll Tax Contributions

In Nigeria, the typical estimation for employee payroll contributions cost is around 10.50%.

Tax Rate Tax Type

Individual Payroll Tax Contributions

Individual income tax in Nigeria is a progressive tax, meaning that the tax rate increases as the taxable income increases. it ranges from 7% to 24%

Tax Rate Income Bracket

Pension in Nigeria

As per the Pension Reform Act 2014, employees must contribute a minimum of 8% of their basic salary, housing allowance, and transport allowance, while employers must contribute a minimum of 10% of the same sum.

The tax-related information provided in this guide is intended for general guidance and informational purposes only. Reach out to our dedicated team for insights on remote hiring in Nigeria tailored to your needs.

Easily navigate payroll, taxes and contributions with Playroll.

Grow your distributed workforce today!

Understanding the Protocols for Termination of Employment in Nigeria

When it comes to terminating employment in Nigeria, understanding the legal obligations regarding severance pay and contributions is essential. Below is a detailed overview of the key considerations for both employers and employees.

Termination Process

The termination process in Nigeria is governed by the Labour Act and the National Industrial Court Act. Under these laws, employers have the right to terminate employment contracts at any time, but they must give employees notice of termination or pay them salary in lieu of notice.

Notice Period

The notice period required depends on the employee's length of service, as follows:

  • Up to 3 months: 1 day
  • Up to 2 years: 1 week
  • Up to 5 years: 2 weeks
  • 5 years or more: 1 month

Severance Pay

Severance pay in Nigeria is not mandatory by law, but it is often part of an agreement between the employer and employee, or is provided under sectoral (branch) collective agreements. The amount of severance pay paid to an employee typically depends on their length of service and last salary. There are two main types of severance pay in Nigeria:

  • Redundancy pay: This is paid to employees who are laid off due to redundancy.
  • Terminal benefit: This is paid to employees who are terminated for any other reason, such as poor performance, misconduct, or retirement.
  • Terminal benefit: This is paid to employees who are terminated for any other reason, such as poor performance, misconduct, or retirement.

Annual Leave Entitlements and Company Policies in Nigeria

The annual leave entitlement in Nigeria is 21 - 28 days for a full time worker. These can include public holidays on top of that or within those days, which would otherwise be unpaid.

Public Holidays in Nigeria

Nigeria has 11 public holidays in a calendar year, which are not included in the minimum paid leave entitlement and are taken in addition to annual leave. The following are national holidays in Nigeria:

Holiday Date

Paid Time Off in Nigeria

Maternity Leave in Nigeria

Paternity Leave in Nigeria

Sick Leave in Nigeria

Bereavement Leave

Study Leave

Parental Leave In Nigeria

Nigeria's Benefits Built Into Playroll

Competitive benefits package in Nigeria

Playroll is committed to providing tailored, competitive benefits packages that are designed not only to attract but also retain top talent worldwide. Our global team of benefits experts build custom local packages to ensure your employees in Nigeria's needs are met. Typically our packages contain some or all of the following benefits.

Health Insurance
Pension or 401k
Life and Disability Insurance
Vision Insurance
Dental Insurance
Discounts & Perks

Playroll Supplementary Benefits For Employment In Nigeria

Make your benefits package in Nigeria a talent magnet with Playroll's local plans. We offer benefits that are compliant, comprehensive, and flexible — all at competitive rates. Speak with our local territory experts to explore the localized benefits we can offer you, while you scale your team.

  • Health Insurance
  • Pension
  • Background Checks
  • IT Equipment Sourcing

Statutory benefits for employment in Nigeria

Playroll allows you to provide localized benefits for employees in Nigeria within minutes. All in one manageable online dashboard. If you'd like specific information about our benefits packages in Nigeria create an account or contact our global expansion team, today.

Playroll Benefit Services

Playroll's Expertise in Facilitating Work Visas for Nigeria

At Playroll we're all about empowering employees to work anywhere, making mobility possible for global teams. We sponsor visas and hire the employee for you, so you don’t have to worry about payroll, taxes, and more.

It's important to note, visa support can be complicated. There are many variables that affect whether sponsorship is possible, including one’s nationality, education, marital status, and the immigration policy for the country in question.

Unfortunately, this means we can’t support visas everywhere - with that being said, we handle the entire visa process in-house, and dig into your situation to give you an overview of what to expect if we're able to help with visa sponsorship in Nigeria.

Playroll Immigration Support

Integrated EOR Platform

Legal and compliance experts are readily available to provide guidance and case-by-case Q&A support.

Accelerated Immigration Timeline

By leveraging dedicated support from in-house legal and compliance experts for case by case questions and more.

Hire in 50+ Countries

Accelerated Immigration Timeline

Acquiring a visa without an entity has never been easier, leverage Playroll's global coverage to sponsor and hire employees.

Playroll Visa Services

Hiring International Employees is Complex.

Playroll makes it easy!