Nigeria Employer of Record & Payroll

Africa Deployments Nigeria offers our clients Employer of Record solutions in Nigeria covering all of the regions within. We offer full-time employment or fixed terms contracts based on your requirements in Nigeria for locals or expatriates. ADS will take care of the work permit under our umbrella and will issue local work contracts to your contractors. We will also advise our client’s on the best Human Resource (HR) practices when setting up employees locally in Nigeria Employer of Record. ADS currently works with a number of NGO’s & Development Agencies in Nigeria ADS takes care of the local tax & PAYE remittances to the Revenue Services on a monthly basis ensuring that they are fully compliant with the law. We will also ensure that their salaries are paid on time monthly and issue them with their pay slips. In addition to our services, we can offer you employees in Nigeria, Medical, Disability, Life, and Workmen’s Compensation insurance. Nigeria, an African country on the Gulf of Guinea, has many natural landmarks and wildlife reserves. Protected areas such as Cross River National Park and Yankari National Park have waterfalls, dense rainforests, savanna, and rare primate habitats. One of the most recognisable sites is Zuma Rock, a 725m-tall monolith outside the capital of Abuja that’s pictured on the national currency.

Population

213.4 million (2021)

Currency

Nigerian Naira

Capital

Abuja

Language

English

GDP

440.8 billion USD (2021)

Industries

Cement, Oil Refining, Construction

What is the main language spoken in Nigeria:

In Nigeria the official language is English, but it is spoken less frequently in rural areas. Other major languages spoken include: Hausa, Yoruba, Igbo, Fulfulde, Ibibio, Kanuri, and Tiv.

What type of employment contracts can you offer in Nigeria:

Through our employer of record (EOR) solutions in Nigeria, we can offer the following types of employment contracts:

Fixed Term
Indefinite term

Contracts and Offer Letters must:

Be in writing
Be in the official local language and the local currency
Include salary/compensation, benefits and termination requirements

Full-time Employees:

Have specific working terms and conditions
Can be eligible for organizational perks and/or other benefits
Tend to be more focused [as only one employer] and familiar with the specific business – due to e.g. ongoing company training etc.
Probationary period is 3 – 6 months [maximum]

Standard working hours: Number Overtime to be paid?

In Nigeria, the standard working hours are typically 8 hours per day or 40 hours per week. Any hours worked beyond the standard working hours are considered overtime. The overtime rate is usually higher than the regular hourly rate and can vary depending on factors such as the day of the week (including weekends and public holidays) and the duration of the overtime work.

Mandatory contributions?

Employee

Contribution Type	Contribution Rate	Threshold
National Pension Scheme	8% of Monthly Emolument	N/A (based on salary)
Employee Compensation Scheme	N/A (automatically deducted)	N/A
National Housing Fund	2.5% of Monthly Income	N/A (based on income)

Employer

Contribution Type	Contribution Rate	Threshold
National Pension Scheme	10% of Monthly Emolument	N/A (based on salary)
Employee Compensation Scheme	Varies by industry	N/A
National Housing Fund	2.5% of Monthly Income	N/A (based on income)

Social

Contribution Type	Contribution Rate	Threshold
Employee Compensation Scheme	N/A (automatically deducted)	N/A
National Housing Fund	N/A	N/A
National Pension Scheme	N/A	N/A

What is the Maternity and Paternity policy within Nigeria:

Maternal leave:

In most cases:
- Paid at 50% for employees [part employer part insurance]
12 weeks [usually majority of the weeks to be post birth]

Paternal leave:

Paid paternity leave is available in the following states of Nigeria:
- Lagos – 2 weeks
- Enugu – 3 weeks

What type of leave is allowed in Nigeria:

As per the local statutory laws in Nigeria the following types of leave are recognized:

Medical Leave [employees]:

Generally up to 12 days paid sick leave per year
Extended medical leave for chronic illnesses
Certified health certificate to be provided

Annual Leave [employees]:

After 1 year of employment in an organization – 6 days paid leave per year [± .5 = ½ day paid leave per month]
Accrued leave can be negotiated within the employment contract

Do I need to pay a mandatory bonus annually OR is it discretionary in Nigeria:

There is no statutory requirement to pay an annual or other bonus in Nigeria, but performance-based and annual bonuses are customary.

What Gratuity / Severance payments do you need to provide for Nigeria:

Before employing your employees in Nigeria, it is always advisable to understand your risk from an employment perspective, especially as Nigeria has at-will employment.

Unfortunately, nothing is guaranteed and in the event that you need to terminate for a valid reason, we always suggest that you know what you are in for in the unlikely event you need to terminate.

Below are the types of terminations in Nigeria:

Notice period:

Calculated based on length of service and employment type
30 days is standard, or payment-in-lieu
Prior written notice required

Severance [economic reasons]:

There is no statutory severance pay in Nigeria

Mandatory Probation period of Nigeria?

In Nigeria, there is no set mandatory probation period for employees, and it is determined by the employer based on their discretion and the terms of the employment contract.

What are the Corporate and VAT / Sales tax rates in Nigeria:

Corporate Tax Rates: 30% [in general]

VAT / Sales Tax Rates: 7.5% [on most goods and services]

Public Holidays in Nigeria:

January 1 - New Year's Day
January 2 - New Year's Day
April 7 - Good Friday
April 21 - Eid-al-Fitr
April 22 - Eid-al-Fitr
May 1 - Worker's Day
May 27 - Children's Day
June 12 - Democracy Day
June 28 - Eid-al-Adha
June 29 - Eid-al-Adha
September 27 - Prophet's Birthday
Oct 1 - Independence Day
Oct 2 - Independence Day
December 22 - Sambisa Memorial Day
December 25 - Christmas Day
December 26 - Boxing Day Holiday

What Industries we support in Nigeria:

Non-Governmental Organization’s (NGO) / Non- profit
Engineering & Construction
Government / Development Agencies
Oil & Gas
FMCG & Manufacturing
Private Equality, Finance, Insurance & Banking
Mining
Agriculture

What Double Tax Treaties are in place in Nigeria:

The information provided above is for an “informative decision” and may change at any given time without prior notice. We always suggest speaking to one of our Sales Consultants before engaging in country.