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Nigeria is the largest economy in Africa, home to a young, growing, and increasingly digital workforce. With a strong entrepreneurial culture, widespread English proficiency, and competitive labour costs, Nigeria offers a compelling destination for companies looking to scale their teams in West Africa.
Nigeria’s vibrant and rapidly growing workforce makes it an attractive destination for international hiring. However, employers must follow specific regulations regarding employment contracts, statutory deductions, and worker classification to remain compliant.
Get details on Nigeria’s employment laws, tax obligations, and cost structures in our complete hiring guide before expanding.
In Nigeria, employment contracts must be in writing and should outline the terms of employment, job description, working hours, benefits, and termination clauses. These contracts can be fixed-term or open-ended.
Notice periods: Up to 1 month
Termination of employment: Can occur via notice, payment in lieu of notice, or for just cause (following due process).
Want to learn more about employment contracts in Nigeria? Get our full template now!
Employers in Nigeria are legally required to provide a set of statutory benefits. Many companies also offer additional perks to attract top talent.
Mandatory benefits: National Housing Fund (NHF), National Health Insurance Scheme (NHIS), Personal Income Tax (PIT), Pension Fund, Industrial Training Fund (ITF), and Nigeria Social Insurance Trust Fund (NSITF)
Common perks: Performance bonuses, transport allowances, mobile/data stipends
Leave policies: Annual leave, sick leave, maternity leave, and paternity leave.
Want to learn more about all the employee benefits available in Nigeria?
Salaries in Nigeria are typically paid monthly. Employers must ensure accurate deductions for taxes and contributions and submit reports to the relevant authorities.
Salary payment deadline: As outlined in employment contracts (usually monthly)
Taxes and contributions payment deadline: Monthly, based on remittance schedules
Payroll declarations deadline: Monthly submission to tax and regulatory bodies
Payroll currency: Nigerian Naira (NGN)
Using EOR services in Nigeria allows you to legally employ individuals in the country without opening legal entities there. The EOR takes over all the legal responsibilities as an official employer, including:
Using PEO services in Nigeria provides HR and administrative support, while you remain the legal employer. PEO services are ideal for employers who already have legal entities in Nigeria but need support to manage their workforce operations, including:
Native Teams provides a payroll calculator adjusted per Nigeria’s labour laws. Estimate gross-to-net salaries, tax withholdings, and employer costs in Nigeria with our localised calculator. Designed to meet all payroll and compliance requirements.
Note: The information provided above is for general guidance only and should not be considered a substitute for legal advice. We strongly recommend consulting with qualified professionals who specialise in local labour laws before making any hiring decisions. While the data was accurate at the time of writing, labour regulations are subject to change, and it is your responsibility to stay informed about the latest developments.
Last update: July 29, 2025
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Freelancers and gig workers in Nigeria are generally considered self-employed and are responsible for managing their own taxes and social security contributions. As a client, you are not required to make contributions on their behalf.
However, to avoid potential misclassification, it’s important that the working arrangement does not resemble an employer-employee relationship. Always ensure that you have a clearly defined contract that outlines the scope of work, deliverables, payment terms, and other key conditions.
