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Country hiring guide

Hiring in Nigeria ๐Ÿ‡ณ๐Ÿ‡ฌ

Nigeria is Africa's largest market, with a young, English-speaking, tech-forward workforce. All-in employer cost runs around 1.1x the gross salary. Here is what to know before your first Nigerian hire.

Calculate a Nigeria hire โ†’
Capital cityAbuja
CurrencyNigerian naira (NGN)
LanguagesEnglish
Population~223 million
Payroll frequencyMonthly
VAT standard rate7.5%
Employer burden*~12% of gross
TGTC flat EOR fee$399/mo ยท Tier A
Overview

Employing in Nigeria

Employment runs under the Labour Act plus pension and industrial-training statutes, with written contracts and mandatory pension enrolment for larger employers. A 13th-month payment is a common custom.

Minimum wage

  • NGN 70,000/month (National Minimum Wage Act 2024)

Payroll cycle & extra pay

  • Monthly, paid in NGN
  • No statutory 13th month

Public holidays

  • ~11 public holidays per year

Onboarding & probation

  • Probation typically 3-6 months
Employer costs

What you pay on top of salary

Employer costs are moderate, around 12%, driven by the pension contribution plus small employee-compensation and training levies.

Employer contribution*Rate
Pension (employer share)10%
NSITF (employee compensation)1%
ITF (training)1%*
NHF (employee-deducted)2.5%

Thresholds

Pension enrolment applies to employers above a size threshold, and the training levy applies above a turnover threshold, so obligations depend on scale.

Employee-side taxes

Employees pay PAYE income tax under the state tax authorities plus their pension share, withheld at source. Withholding is the employer's responsibility, which under EOR means ours.

Types of leave

Statutory leave in Nigeria

Annual leave

  • 6 working days minimum; employers commonly grant 15-20+

Maternity & parental leave

  • 12 weeks at 50% pay; no federal statutory paternity*

Sick leave

  • Up to 12 working days paid per year

Other leave

  • Additional leave varies by contract
Employment termination

Ending employment in Nigeria

Notice

  • 1 month typical, or pay in lieu; varies by tenure

Severance

  • No statutory severance; per contract/redundancy policy

Probation

  • Minimal obligations to terminate during probation

Contractor risk

  • Misclassification exposes pension/NSITF liability

*All figures are estimates from public sources (2025-26), pending ops verification - same basis as the EOR cost calculator. Not tax or legal advice.

Employ in Nigeria without opening an entity

Compliant Nigerian employment contract, payroll, and pension, handled. One invoice, flat $399 per month.

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