Employer of Record in Nigeria

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Rivermate's Employer of Record (EOR) solution helps companies hire remote employees in Nigeria . We take care of global payroll, taxes, benefits, compliance and HR activities. So you can focus on growing your business. Our Employer of Record (EOR) solution is beneficial to companies that want to hire remote employees in a breeze. On this page you will find employment information for Nigeria.

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1. Grow your team in Nigeria with Rivermate as your Employer of Record (EOR) / PEO

Payroll, benefits, taxes, and compliance can be difficult to manage in Nigeria , particularly if you don't have established local relationships. You can hire employees in Nigeria effectively, conveniently, and in full compliance with all relevant labor laws using Rivermate's global Employer of Record (EOR) solution. We handle the responsibilities and legal risks associated with foreign employment so you can concentrate on growing your company.

2. Summary

Nigeria, formally the Federal Republic of Nigeria, is a West African nation. It is Africa's most populated nation. It is located in the Atlantic Ocean, between the Sahel to the north and the Gulf of Guinea to the south. It has a population of about 216 million people and an area of 923,769 square kilometers (356,669 square miles). Nigeria is bounded to the north by Niger, to the northeast by Chad, to the east by Cameroon, and to the west by Benin. Nigeria is a federal republic made up of 36 states and the Federal Capital Territory, which includes the capital, Abuja. Lagos is Nigeria's biggest metropolis, with one of the world's largest metropolitan areas and the second-largest in Africa.

Since the second millennium BC, Nigeria has been home to various indigenous pre-colonial nations and kingdoms, with the Nok civilization in the 15th century BC being the country's first internal union. The contemporary state arose from British colonialization in the nineteenth century, obtaining its current geographical structure with Lord Lugard's 1914 merger of the Southern and Northern Nigeria Protectorates. In the Nigeria area, the British established administrative and legal institutions while exercising indirect authority via traditional chiefdoms. On October 1, 1960, Nigeria became an officially independent federation. It went through a civil war from 1967 to 1970, then a series of democratically elected civilian administrations and military dictatorships until reaching stable democracy in the 1999 presidential election; the 2015 election was the first time an incumbent president lost re-election.

Nigeria is a multicultural country with over 250 ethnic groups speaking 500 different languages and identifying with a broad range of traditions. The three major ethnic groups are Hausa in the north, Yoruba in the west, and Igbo in the east, accounting for more than 60% of the total population. The official language is English, which was selected to promote linguistic unification on a national scale. Nigeria's constitution guarantees religious freedom, and the country is home to some of the world's biggest Muslim and Christian populations. Nigeria is approximately split in half between Muslims in the north and Christians in the south; indigenous faiths, such as those indigenous to the Igbo and Yoruba ethnicities, are in the minority.

Nigeria is an African regional power, a middle power in international affairs, and a rising global force. Nigeria's economy is the biggest in Africa, the 25th largest in the world in terms of nominal GDP, and the 25th largest in terms of PPP. Nigeria is known as the "Giant of Africa" due to its massive population and economy, and the World Bank classifies it as an emerging market. However, the country scores extremely low in the Human Development Index and is one of the world's most corrupt countries. Nigeria is a founding member of the African Union as well as a member of other international organizations such as the United Nations, the Commonwealth of Nations, NAM, the Economic Community of West African States, and OPEC. It is also a member of the MINT informal group and one of the Next Eleven economies.

Hiring talented employees in a short span is not an easy task. Partnering with an Employer of Record (EOR) like Rivermate in Nigeria is your best option, giving your organization enough time to focus on other aspects of international expansions like project management and inventory management. The EOR takes care of all the compliance and legal issues while helping you speed up hiring using their knowledge of domestic employment practices and virtual onboarding tools. Top EORs also have provisions for the e-signing of documents to enable faster onboarding.

3. Public holidays

4. Types of leave

There is no information about the types of leave for this country.

Paid time off

Employees are paid for six days.

Public holidays

Nigeria recognizes thirteen public holidays.

Sick days

Employees are compensated with twelve sick days per year.

Maternity leave

Mothers who have worked for the firm for at least six months are entitled to 12 weeks of maternity leave (six weeks before and six weeks after the delivery), paid at 50% of their usual wage.

Paternity leave

Nigeria does not have a national paternity leave.

Parental leave

Nigeria does not have a national parental leave.

Other leave

5. Employment termination

There is no information about employment information for this country.

Termination process

Employment may be terminated at any moment by either the employer or the employee with sufficient notice.

Notice period

The amount of notice required varies according to the length of service. For less than three months of service, a one-day notice period is required. If an employee has worked for the company for three months to two years, they are entitled to a one-week notice period. Two weeks will be granted for every two to five years of service. Finally, employees with more than five years of service are entitled to a one-month notice period.

Probation period

There is no specific provision regarding the length of a probation period in Nigeria.

Severance pay

There is no law requiring severance pay but it is usually part of an agreement between the employer and employee.

6. Working hours

There is no information about the working hours for this country.

General working schedule

Individual or collective bargaining agreements, or the industrial wage board, determine work hours in Nigeria. The typical workweek, on the other hand, is 40 hours with an eight-hour day.


Overtime is permitted and is specified in the employment contract or collective bargaining agreement.

7. Minimum wage

There is no information about the minimum wage for this country.

In 2018, the minimum salary was 18,000 NGN per month, however beginning of April 2019, it has increased to 30,000 NGN per month.

8. Employee benefits

There is no information about the employee benefits for this country.

Although public healthcare is accessible in Nigeria, employers often offer supplemental private healthcare insurance.

Pension plans, dental benefits, life insurance, stock options, a vehicle allowance, and a mobile phone are all common perks.

9. Taxes

There is no information about the taxes for this country.

Corporate tax

Resident corporations are subject to corporate income tax (CIT) on their global revenue, while non-resident corporations are subject to CIT on their income derived in Nigeria.

The CIT rate is 30% for big businesses (those with a gross turnover of more than NGN 100 million), calculated on a prior-year basis (i.e. tax is charged on profits for the accounting year ending in the year preceding assessment).

Individual income tax

Individuals residing in Nigeria are subject to taxation on their global income. In the event of employment, a non-resident person is subject to tax in Nigeria if the responsibilities of the job are performed entirely or partially in Nigeria, unless:

(1) the duties are performed on behalf of an employer who is in a country other than Nigeria,

(2) the remuneration of the employee is not borne by a fixed base of the employer in Nigeria, and

(3) the remuneration of the employee is liable to tax in that other country under the provisions of the avoidance of double taxation treaty (DTT) with that other country.

For an annual income of up to NGN 300,000, the personal income tax rate is set at 7 percent.

For an annual income between NGN 300,000 and NGN 600,000, the personal income tax rate is set at 11 percent.

For an annual income between NGN 600,000 and NGN 1,100,000, the personal income tax rate is set at 15 percent.

For an annual income between NGN 1,100,000 and NGN 1,600,000, the personal income tax rate is set at 19 percent.

For an annual income between NGN 1,600,000 and NGN 3,200,000, the personal income tax rate is set at 21 percent.

For an annual income above NGN 3,200,000, the personal income tax rate is set at 24 percent.

VAT, GST and sales tax

VAT is charged at a normal rate of 7.5 percent.

Non-oil exports, goods and services bought by diplomats, and commodities purchased for use in humanitarian donor-funded initiatives are all zero-rated items. Plants and equipment used in export processing zones (EPZs) or free trade zones (FTZs), essential food items (based on a specified list), medical goods and services, pharmaceutical products, books and educational materials, and exported services are all exempt.

10. VISA and work permits

There is no information about VISA and work permits for this country.

Employers of foreign nationals in Nigeria have various alternatives under the country's immigration system. Nigeria is a member of the Economic Community of West African States (ECOWAS), and its immigration policy includes features unique to the ECOWAS. The requirements, processing dates, work eligibility, and perks for accompanying family members differ depending on the kind of permission.

Non-ECOWAS member countries may utilize the business visa for stays of up to 90 days. This visa can be extended in Nigeria for another 30 to 90 days at the discretion of the authorities.

ECOWAS nations do not need a visa to enter Nigeria if they have a valid passport.

Non-ECOWAS nationals must get an extension and pay the associated charge for any stay that exceeds 56 days in a calendar year.

The Temporary Work Permit is appropriate for foreign nationals who are doing short-term technical jobs (e.g., after-sales installation, maintenance, repairs of machines, and equipment). It allows for a single entrance into Nigeria for up to 90 days of employment.

Depending on their expected period of stay, foreign nationals performing employment should apply for the Combined Expatriate Residence Permit and Aliens Card (CERPAC) or the Temporary Work Permit (TWP).

11. Employer Of Record service terms

There is no information about the Employer of Record (EoR) service terms for this country.

Employment contracts

In Nigeria, it is legally obligatory to have a written employment contract in the local language that specifies out the conditions of the employee's remuneration, benefits, and termination requirements. A salary and other compensation amounts should always be stated in Nigerian naira rather than a foreign currency in an offer letter and employment contract.

With Rivermate being your Employer of Record (EoR) in Nigeria, you do not have to worry about the employment contracts, as we take care of that.

Minimum assignment length

In Nigeria, employment contracts are written in the native language. The employer is obligated to give a written statement providing information about the employment within three months of the commencement of employment. Any modifications to the terms of the employment contract must be made in writing and communicated to the employee within one month.

Payment currency

Nigerian Naira

13.Opening a subsidiary in Nigeria

There is no information about the working hours for this country.

How to set up a subsidiary

Learning how to set up a Nigeria subsidiary is a difficult undertaking that is dependent on a number of things. You should begin by locating a location for your real office space. Because Nigeria is made up of several states, you should bear in mind that each state may have its own Nigeria subsidiary laws. Before signing a lease or obtaining a facility, always do research to ensure that it is simple to incorporate in the region.

Your entity is another crucial selection that will have an influence on the setup procedure. Different subsidiary structures have their own set of restrictions that will effect how you do business in the nation. A limited liability company (LLC), for example, will provide you the greatest flexibility to operate in Nigeria, whilst a branch business would give you the least. You have the option of forming an LLC, a partnership, or an institution.

The following actions are required to establish a Nigeria subsidiary as an LLC:

1. Choosing a distinct and readily available name

2. Providing a corporate goal

3. Providing the firm with a registered primary address

4. Providing information about the owners of the parent business and the subsidiary

5. Providing contact information for the company's secretary

6. Giving authorities the parent company's or holding company's resolution authorizing the subsidiary's registration

7. Registering the company's memorandum and articles of incorporation

8. Providing a copy of the incorporation certificate

Subsidiary laws

Certain regulations for the operation of LLCs are outlined in Nigeria's subsidiary legislation. For example, each nationality is required to have at least two shareholders and two directors. The minimum share capital is $1, however the complete Nigeria subsidiary formation procedure would cost almost $13,000. It normally takes around six weeks to incorporate a corporation if all of the country's subsidiary regulations are followed every step of the route.

13. Why choose Rivermate as your Employer of Record / PEO in Nigeria

Establishing an entity in Nigeria to hire a team takes time, money, and effort. The labor law in Nigeria has strong worker employment protection, requiring great attention to details and a thorough awareness of local best practices. Rivermate makes expanding into Nigeria simple and effortless. We can assist you with hiring your preferred talent, managing HR and payroll, and ensuring compliance with local legislation without the hassle of establishing a foreign branch office or subsidiary. Our PEO and Global Employer of Record (EOR) solutions in Nigeria give you peace of mind so you can focus on running your business. Please contact us if you'd like to learn more about how Rivermate can help you hire employees in Nigeria via our Employer of Record (EOR) / PEO solution.

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