Nigeria

Nigeria, Africa’s most populous country and largest economy, is undergoing significant economic reforms aimed at modernizing its fiscal and labor systems. While the country offers a youthful, English-speaking workforce and a growing consumer market, businesses must navigate a complex regulatory environment marked by recent policy shifts, inflationary pressures, and evolving labor laws.
Contractor Management
EOR
Payroll
Contractor of Record
Currency
Nigerian naira (NGN)
Payroll Frequency
Monthly, bi-monthly or weekly
Employer Taxes
1% to 11%

Overview

Population
~220 million
Language
English
Capital
Abuja
Currency
Nigerian naira (NGN)
Country code
+234
Min wage
70,000 NGN/month
Working hours
8 hours per day
Weekdays
Monday to Friday
Work hours per week
40 hours per week

Payroll

Salaried Employees
Time-Based Employees
13th Salary

Not mandatory; subject to employer discretion

Avg employer tax

1% to 11%

Tax Breakdown

Personal Income Tax (PIT):

Nigeria employs a progressive tax system for individual income:

₦0 – ₦300,000
7%
₦300,001 – ₦600,000
11%
₦600,001 – ₦1,100,000
15%
₦1,100,001 – ₦1,600,000
19%
₦1,600,001 – ₦3,200,000
21%
Above ₦3,200,000
24%

Note: Employees earning ₦70,000/month (₦840,000/year) are subject to tax.

Corporate Income Tax (CIT):

Standard Rate
30%
Small Companies
0% for gross turnover ≤ ₦25 million
Medium Companies
20% for gross turnover between ₦25 million and ₦100 million

Note: A gradual reduction in CIT rates is planned, with a decrease to 27.5% in 2025 and 25% in 2026

VAT

VAT

7.5%

Tax Calculation for Nigeria
*
Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.
NG
*
Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.
Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.
Top Countries
Employer cost
Total monthly cost of employment
GBP 9,633
Gross monthly salary costs
GBP 8,334
Estimated taxes and contributions
GBP 8,334
Employee cost
Net monthly salary
GBP 5,137
Gross monthly salary
GBP 8,334
Estimated taxes & social security
GBP 8,334
Employer cost
Total yearly cost of employment
GBP 9,633
Gross yearly salary costs
GBP 8,334
Estimated taxes and contributions
GBP 8,334
Employee cost
Net yearly salary
GBP 5,137
Gross yearly salary
GBP 8,334
Estimated taxes & social security
GBP 8,334
Request a detailed quotation
How it works

Onboarding Process

Onboarding in Nigeria typically includes the following steps to ensure a smooth transition for new hires:

Employment Contract

  • Must be in writing
  • Include job title, duties, salary, working hours, leave entitlements, and termination conditions

Registration with Authorities

  • Register the employee with the Federal Inland Revenue Service (FIRS) for tax purposes
  • Register with the National Pension Commission (PenCom) for pension contributions

Payroll Setup

Ensure accurate calculation and withholding of taxes, pension contributions, and other statutory deductions

Employee Documentation

Collect personal identification, bank account details, and tax information

Workplace Policies

Provide access to company policies, health and safety guidelines, and any applicable collective agreements

Pre-boarding

Pre-boarding

Pre-boarding

Key Elements of an Employment Contract in Nigeria
When drafting an employment contract for employees in Nigeria, the following key elements should be included:

Personal Details

Name, contact information, and role of the employee.

Employee Leave Policies

Sick days
  • Entitlement: Up to 12 working days of paid sick leave per calendar year
  • Certification: Must be certified by a registered medical practitioner
Maternity leave
  • Duration: 3 months (12 weeks)
  • Compensation: Employer is required to pay no less than 50% of the employee's salary during this period

Note: A bill to increase maternity leave from 12 weeks to 24 weeks has passed its second reading in the House of Representatives

Paternity leave
  • Federal Civil Service: 14 days of paid paternity leave for male employees
  • State Governments: Varies; for example, Enugu State offers 3 weeks, while Lagos State offers 2 weeks for the first two children
Annual Leave
  • Statutory Leave: At least 6 working days per year after 12 months of continuous service
  • Young Workers (Under 16): At least 12 working days per year
8 Public holidays in Nigeria

Note: Additional holidays may be observed based on regional practices and religious calendars.

1st
New Year's Day
30th
Eid al-Fitr
1st
Eid al-Fitr
Labour Day
7th
Eid al-Adha
8th
Eid al-Adha
12th
Democracy Day
1st
Independence Day
25th
Christmas Day
26th
Boxing Day
  • 1 Jan: New Year's Day
  • 15 Apr: Good Friday
  • 18 Apr: Easter Monday
  • 1 May: Labor Day
  • 2 May: Id el Fitri
  • 3 May: Id el Fitri Holiday
  • 12 Jun: Democracy Day
  • 9 Jul: Id el Kabir
  • 10 Jul: Id el Kabir Holiday
  • 1 Oct: National Day
  • 8 Oct: Id el Maulud
  • 25 Dec: Christmas Day
  • 26 Dec: Boxing Day

Termination Process

Permissible Grounds

  • Mutual agreement
  • Redundancy
  • Misconduct
  • Performance issues

Notice Period

  • Employee-Initiated: 1 day to 1 month, depending on the length of service
  • Employer-Initiated: 1 day to 1 month, depending on the length of service
  • Severance Pay: Not mandatory; subject to employment agreements

Probation Period

  • Typical Duration: 3 to 6 months
  • Extension: Any extension beyond the stipulated period must be formalized in writing and is subject to legal scrutiny

Personal Details

Name, contact information, and role of the employee.

_'s Booming Remote Workforce

Challenges of Remote Hiring in _

Simplifying Remote Hiring in _ with RemotePass 

Grow Your Team in Nigeria
with RemotePass

Nigeria offers a dynamic and youthful workforce, making it an attractive destination for businesses seeking to expand in Africa. RemotePass simplifies the process of hiring and managing employees in Nigeria, ensuring compliance with local laws, handling payroll and benefits, and providing a seamless experience for both employers and employees.

Building and expanding a global workforce is seamless with RemotePass. Our platform simplifies the complexities of hiring, payroll, and compliance across over 150 countries, including Nigeria.

With RemotePass, you can quickly onboard international employees, manage payroll, ensure legal compliance, and provide competitive benefits—all from one place. Focus on growing your business while we handle the HR and legal intricacies.

Free 7-day trial

No credit card required

Cancel anytime

Let’s Chat

Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.

Nigeria

Nigeria, Africa’s most populous country and largest economy, is undergoing significant economic reforms aimed at modernizing its fiscal and labor systems. While the country offers a youthful, English-speaking workforce and a growing consumer market, businesses must navigate a complex regulatory environment marked by recent policy shifts, inflationary pressures, and evolving labor laws.
Contractor Management
EOR
Payroll
Contractor of Record
العملة
Nigerian naira (NGN)
تردد الرواتب
Monthly, bi-monthly or weekly
ضرائب أصحاب العمل
1% to 11%

نظرة عامة

التركيبة السكانية
~220 million
اللغة
English
العاصمة
Abuja
العملة
Nigerian naira (NGN)
رمز الاتصال الدولي
+234
الحد الأدنى للأجور
70,000 NGN/month
ساعات العمل
8 hours per day
أيام الأسبوع
Monday to Friday
ساعات العمل اسبوعيا
40 hours per week

الرواتب

الموظفون برواتب ثابتة
الموظفون بنظام الأجر الزمني
13th Salary

Not mandatory; subject to employer discretion

متوسط ​​ضريبة صاحب العمل

1% to 11%

تحصيل الضرائب

Personal Income Tax (PIT):

Nigeria employs a progressive tax system for individual income:

₦0 – ₦300,000
7%
₦300,001 – ₦600,000
11%
₦600,001 – ₦1,100,000
15%
₦1,100,001 – ₦1,600,000
19%
₦1,600,001 – ₦3,200,000
21%
Above ₦3,200,000
24%

Note: Employees earning ₦70,000/month (₦840,000/year) are subject to tax.

Corporate Income Tax (CIT):

Standard Rate
30%
Small Companies
0% for gross turnover ≤ ₦25 million
Medium Companies
20% for gross turnover between ₦25 million and ₦100 million

Note: A gradual reduction in CIT rates is planned, with a decrease to 27.5% in 2025 and 25% in 2026

ضريبة القيمة المضافة

ضريبة القيمة المضافة

7.5%

حساب الضريبة في Nigeria
*
Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.
NG
*
Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.
Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.
Top Countries
تكلفة صاحب العمل
إجمالي تكلفة التوظيف الشهرية
GBP 9,633
إجمالي تكاليف الراتب الشهري
GBP 8,334
الضرائب والمساهمات المقدرة
GBP 8,334
تكلفة الموظف
صافي الراتب الشهري

GBP 5,137
الراتب الشهري الإجمالي
GBP 8,334
الضرائب المقدرة والضمان الاجتماعي
GBP 8,334
تكلفة صاحب العمل
إجمالي تكلفة التوظيف السنوية
GBP 9,633
إجمالي تكاليف الرواتب السنوية
GBP 8,334
الضرائب والمساهمات المقدرة
GBP 8,334
تكلفة الموظف
صافي الراتب السنوي

GBP 5,137
الراتب السنوي الإجمالي
GBP 8,334
الضرائب المقدرة والضمان الاجتماعي
GBP 8,334
اطلب عرض أسعار تفصيلي
كيف تعمل الخدمة

عملية الانضمام

تشمل عملية التوظيف في Nigeria عادة الخطوات التالية لضمان انتقال سلس للموظفين الجدد:

Employment Contract

  • Must be in writing
  • Include job title, duties, salary, working hours, leave entitlements, and termination conditions

Registration with Authorities

  • Register the employee with the Federal Inland Revenue Service (FIRS) for tax purposes
  • Register with the National Pension Commission (PenCom) for pension contributions

Payroll Setup

Ensure accurate calculation and withholding of taxes, pension contributions, and other statutory deductions

Employee Documentation

Collect personal identification, bank account details, and tax information

Workplace Policies

Provide access to company policies, health and safety guidelines, and any applicable collective agreements

Pre-boarding

Pre-boarding

Pre-boarding

العناصر الأساسية في عقد العمل في Nigeria
عند إعداد عقد عمل للموظفين في Nigeria يجب تضمين العناصر الأساسية التالية:

Personal Details

Name, contact information, and role of the employee.

سياسات إجازات الموظفين

الإجازات المرضية
  • Entitlement: Up to 12 working days of paid sick leave per calendar year
  • Certification: Must be certified by a registered medical practitioner
إجازة الأمومة
  • Duration: 3 months (12 weeks)
  • Compensation: Employer is required to pay no less than 50% of the employee's salary during this period

Note: A bill to increase maternity leave from 12 weeks to 24 weeks has passed its second reading in the House of Representatives

إجازة الأبوة
  • Federal Civil Service: 14 days of paid paternity leave for male employees
  • State Governments: Varies; for example, Enugu State offers 3 weeks, while Lagos State offers 2 weeks for the first two children
Annual Leave
  • Statutory Leave: At least 6 working days per year after 12 months of continuous service
  • Young Workers (Under 16): At least 12 working days per year
8 عطلات رسمية في Nigeria

Note: Additional holidays may be observed based on regional practices and religious calendars.

1st
New Year's Day
30th
Eid al-Fitr
1st
Eid al-Fitr
Labour Day
7th
Eid al-Adha
8th
Eid al-Adha
12th
Democracy Day
1st
Independence Day
25th
Christmas Day
26th
Boxing Day
  • 1 Jan: New Year's Day
  • 15 Apr: Good Friday
  • 18 Apr: Easter Monday
  • 1 May: Labor Day
  • 2 May: Id el Fitri
  • 3 May: Id el Fitri Holiday
  • 12 Jun: Democracy Day
  • 9 Jul: Id el Kabir
  • 10 Jul: Id el Kabir Holiday
  • 1 Oct: National Day
  • 8 Oct: Id el Maulud
  • 25 Dec: Christmas Day
  • 26 Dec: Boxing Day

عملية إنهاء العقود

Permissible Grounds

  • Mutual agreement
  • Redundancy
  • Misconduct
  • Performance issues

Notice Period

  • Employee-Initiated: 1 day to 1 month, depending on the length of service
  • Employer-Initiated: 1 day to 1 month, depending on the length of service
  • Severance Pay: Not mandatory; subject to employment agreements

Probation Period

  • Typical Duration: 3 to 6 months
  • Extension: Any extension beyond the stipulated period must be formalized in writing and is subject to legal scrutiny

Personal Details

Name, contact information, and role of the employee.

_'s Booming Remote Workforce

Challenges of Remote Hiring in _

Simplifying Remote Hiring in _ with RemotePass 

نمِّ فريقك في Nigeria
مع ريموت باس

Nigeria offers a dynamic and youthful workforce, making it an attractive destination for businesses seeking to expand in Africa. RemotePass simplifies the process of hiring and managing employees in Nigeria, ensuring compliance with local laws, handling payroll and benefits, and providing a seamless experience for both employers and employees.

يصبح بناء فريق عالمي وتوسيعه مهمة سهلة مع ريموت باس. منصتنا تبسّط تعقيدات التوظيف والرواتب والامتثال القانوني في أكثر من 150 دولة، بما في ذلك Nigeria.

مع ريموت باس، يمكنك ضم الموظفين الدوليين بسرعة، وإدارة الرواتب، وضمان الامتثال القانوني، وتقديم مزايا تنافسية — كل ذلك من مكان واحد. ركّز على تنمية أعمالك، ودع المهام الإدارية والقانونية علينا.

تجربة مجانية لمدة 7 أيام

لا حاجة لبطاقة ائتمان

يمكنك الإلغاء في أي وقت

دعنا نَدْرُدْش

Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.