Hire in Nigeria

The Federal Republic of Nigeria is located in the southeast of West Africa and stretches over 923,768 square kilometers. It shares land borders with Cameroon and Chad to the East, Niger to the North, Benin to the West, and the Gulf of Guinea in the Atlantic ocean to the south. It shares maritime borders with Equatorial Guinea, Ghana, and São Tomé and Principe.

Administratively, Nigeria is divided into 36 states and the Federal Capital Territory, where the country’s capital, Abuja, is located. The constitution also includes a provision that more states can be created as needed. A member of OPEC since 1971, Nigeria has large deposits of petroleum and natural gas. Its economy is primarily based on the oil sector which provides 20% of GDP, 95% of foreign exchange earnings, and about 65% of budgetary revenues.

 

*Please note that the official currency is the currency of remuneration when employed through WorkMotion in Nigeria.

Onboard your talent in Nigeria

in 10 minutes

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Fast-track your talent onboarding while ensuring 100% compliance with local regulations.

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Guidance & payroll management

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Hire in Nigeria through an

EOR

Easily onboard your remote talent in Nigeria through our Employer of Record (EOR) solution. Our subsidiaries and network partners make this process fast and 100% compliant.

A quick overview of Nigeria

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Cost of living index

$ (122 of 139 countries)

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Currency

Nigerian Naira (₦, NGN)

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Payroll frequency

Monthly/Biweekly/ Weekly

Basic facts

The Federal Republic of Nigeria is located in the southeast of West Africa and stretches over 923,768 square kilometers. It shares land borders with Cameroon and Chad to the East, Niger to the North, Benin to the West, and the Gulf of Guinea in the Atlantic ocean to the south. It shares maritime borders with Equatorial Guinea, Ghana, and São Tomé and Principe.

Administratively, Nigeria is divided into 36 states and the Federal Capital Territory, where the country’s capital, Abuja, is located. The constitution also includes a provision that more states can be created as needed. A member of OPEC since 1971, Nigeria has large deposits of petroleum and natural gas. Its economy is primarily based on the oil sector which provides 20% of GDP, 95% of foreign exchange earnings, and about 65% of budgetary revenues.

 

*Please note that the official currency is the currency of remuneration when employed through WorkMotion in Nigeria.

Capital

Abuja

Official language/s

English

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Population

223.8 million (2023 est.)

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VAT - standard rate

7.5%

The national holidays mentioned below are valid for the year 2025.

January 1New Year’s Day
March 30Id el Fitri (Eid al Fitr)Movable - As per the Islamic Lunar calendar
March 31Id el Fitri (Eid al Fitr) HolidayMovable - As per the Islamic Lunar calendar
April 18Good FridayMovable - Friday before Easter
April 21Easter MondayMovable - Easter is on the first Sunday after the first full moon following the northern spring equinox
May 1Labor Day
June 6Id el KabirMovable - As per the Islamic Lunar calendar
June 7Id el Kabir HolidayMovable - As per the Islamic Lunar calendar
June 12Democracy Day
September 4Id el MauludMovable - As per the Islamic Lunar calendar
October 1National Day
December 25Christmas Day
December 26Boxing Day

The approximate time for sharing the contract with an employee in Nigeria is 5 business days assuming no special requests or changes to our standard employment contract. Any such requests or changes would need to undergo internal and external review, directly leading to a time delay.

NOTE: This number is subject to change and is only an estimation of the Contract Sharing Time. The estimated Contract Sharing Time begins from the moment that WorkMotion has received all required information from both the client and the employee.

  • Every worker who enters into a contract of employment is to be medically examined by a registered medical practitioner at the expense of the employer.
  • In recent years, the employer’s right to terminate a contract of employment without providing a justifiable reason has been curtailed by judgments of the National Industrial Court of Nigeria.
  • There is no regulation on overtime pay rates.

Employer contributions cover benefits for disability, maternity, sickness, and retirement. The levels of contribution are as summarized in the table below:

 

Category Employer Contribution
Contributory Pension Scheme
  • Minimum 10% of gross payroll (includes basic salary, housing allowances, and transportation allowances).
  • Where the employer opts to pay 100% of the contribution – not less than 20% of gross payroll is payable.
Group Life Insurance Policy
  • Minimum insurance cover of three times the annual total emolument of each employee for 12 months, renewable at the end of each period.
  • 100% of the costs are borne by the employer – this is in addition to, and separate from, the contributions made by the employer to each employee’s Retirement Savings Account under the Pension Scheme.
Social insurance (medical benefits)
  • Minimum 10% of monthly basic payroll.
Employees Compensation – Accidents at work and occupational diseases
  • Minimum 1% of gross monthly payroll; may be increased based on the assessed degree of risk.

Working Hours

The normal working hours are 40 hours per week. Normal working hours in an undertaking can be fixed by mutual agreement, by collective bargaining within the organization or the industry concerned, or by an industrial wages board where there is no machinery for collective bargaining. In every period of seven days, a worker is entitled to one day of rest which is no less than 24 consecutive hours. 

 

Overtime

The hours which a worker is required to work in excess of the normal hours constitute overtime. There is no legislation on overtime pay rates. Overtime pay is by mutual agreement between the employer and the employee, a collective bargaining agreement, or an order by the industrial wages board.

 

Probation Period

There is no statutory probation period for new employees in Nigeria. Through custom and practice, contracts of employment specify a three to six months probation period.

Termination Notice Period

The notice period is based on the period an employee has been serving the contract as illustrated in the table below:

Contract Period Served

Applicable Notice

During Probation

1 – 2 weeks

Post Probation

1 month or 1 month payment in lieu of notice

Working Hours

The normal working hours are 40 hours per week. Normal working hours in an undertaking can be fixed by mutual agreement, by collective bargaining within the organization or the industry concerned, or by an industrial wages board where there is no machinery for collective bargaining. In every period of seven days, a worker is entitled to one day of rest which is no less than 24 consecutive hours. 

 

Overtime

The hours which a worker is required to work in excess of the normal hours constitute overtime. There is no legislation on overtime pay rates. Overtime pay is by mutual agreement between the employer and the employee, a collective bargaining agreement, or an order by the industrial wages board.

 

Probation Period

There is no statutory probation period for new employees in Nigeria. Through custom and practice, contracts of employment specify a three to six months probation period.

Termination Notice Period

The notice period is based on the period an employee has been serving the contract as illustrated in the table below:

Contract Period Served

Applicable Notice

During Probation

1 – 2 weeks

Post Probation

1 month or 1 month payment in lieu of notice

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Employer contributions cover benefits for disability, maternity, sickness, and retirement. The levels of contribution are as summarized in the table below:

 

Category Employer Contribution
Contributory Pension Scheme
  • Minimum 10% of gross payroll (includes basic salary, housing allowances, and transportation allowances).
  • Where the employer opts to pay 100% of the contribution – not less than 20% of gross payroll is payable.
Group Life Insurance Policy
  • Minimum insurance cover of three times the annual total emolument of each employee for 12 months, renewable at the end of each period.
  • 100% of the costs are borne by the employer – this is in addition to, and separate from, the contributions made by the employer to each employee’s Retirement Savings Account under the Pension Scheme.
Social insurance (medical benefits)
  • Minimum 10% of monthly basic payroll.
Employees Compensation – Accidents at work and occupational diseases
  • Minimum 1% of gross monthly payroll; may be increased based on the assessed degree of risk.