# Hire in Nigeria

Source: https://overseashire.com/hire/nigeria · verified 2026-10-05 · confidence low

Africa's largest English-speaking tech talent base with a young workforce, though FX controls, naira volatility and power infrastructure require planning.

## Employer cost
Employer on-costs 11–12% of gross salary. Derived: employer pension minimum 10% of monthly emoluments, plus NSITF 1% of payroll (PwC), plus ITF 1% where the employer qualifies (a secondary source; PwC excerpt did not itemise). If the employer bears the whole 20% pension contribution, cost is higher. NHF 2.5% is deducted from employees, not an employer cost. Excludes 13th-month or other contractual benefits.

| Contribution | Rate | Notes |
|---|---|---|
| Contributory pension (Pension Reform Act 2014) - employer | minimum 10% of monthly emoluments (employee 8%) | Combined minimum 18%, or 20% if the employer bears the full amount. PwC states the obligation applies to employers with at least 15 employees; the PRA 2014 is often cited as applying to employers with 3 or more - confirm. |
| NSITF (Employees' Compensation) | 1% of payroll | Employer only. |
| ITF (Industrial Training Fund) | 1% of annual payroll for qualifying employers | Applies to employers with 5+ employees or turnover above a threshold per general knowledge; PwC excerpt silent. |

Mandatory benefits: Pension contributions (RSA); Employee compensation insurance (NSITF); Annual leave (Labour Act minimum: 6 working days after 12 months; many employers give 15-20); Maternity leave 12 weeks at 50% pay (Labour Act)

## Rules
- Payroll: Monthly; PAYE remitted to state internal revenue service by the 10th of the following month (general knowledge)
- Probation: Contractual; commonly 3-6 months. No statutory maximum (general knowledge).
- Notice and severance: Labour Act notice: 1 day (under 3 months), 1 week (3 months-2 years), 2 weeks (2-5 years), 1 month (over 5 years), or per contract if longer. No general statutory severance; redundancy pay is negotiated with unions per Labour Act (general knowledge).
- Termination: Contracts for staff with under statutory thresholds can be ended with notice; unfair-dismissal claims go to the National Industrial Court. Written contracts are required within 3 months.
- Working time: Typically 8 hours per day; 40 hours per week is common. Labour Act sets reasonable hours; overtime by agreement.
- Paid leave: Labour Act minimum 6 working days after 12 months of service; in practice 15-20 days are customary. Public holidays about 12-14 (not verified).
- Minimum wage: NGN 70,000 per month under the National Minimum Wage (Amendment) Act 2024 (effective 19 July 2024), per secondary sources; its application to employers below the 25-employee threshold is not verified - https://support.payspace.com/portal/en/kb/articles/nigeria-national-minimum-wage-amendment-act-2024

## Contractors
Contractors are widely used for remote work. Misclassification risk is moderate; payments to foreign contractors may raise withholding-tax and FX issues. Seek local advice.

## EOR
A foreign company needs a Nigerian limited company (CAC registration) or EOR. EORs handle PAYE, pension and NSITF. Timelines not verified.
Onboarding: EOR not verified; own entity not verified.

## FAQ
**What employer contributions apply in Nigeria?** A minimum 10% employer pension contribution, 1% NSITF and, for qualifying employers, a 1% ITF levy.

**Is there a minimum wage?** NGN 70,000 monthly under the 2024 Act, with applicability limits for small employers.

**How did tax change in 2026?** The Nigeria Tax Act 2025 replaced the old PIT bands from 1 January 2026, with a 0% first band of NGN 800,000.

**Is a local entity needed?** For direct employment, yes; an EOR is the alternative.

Unverified: PwC says pension applies at 15+ employees whereas the Act is usually cited as 3+; ITF scope and rate; NHF employee vs employer split; Leave, notice, working-time and probation from general knowledge; New 2025 Act details on employer deductibility; Minimum wage applicability threshold; EOR/entity timelines

Sources:
- https://taxsummaries.pwc.com/nigeria/corporate/other-taxes
- https://support.payspace.com/portal/en/kb/articles/nigeria-national-minimum-wage-amendment-act-2024
- https://www.remotepass.com/country/nigeria/taxes
- https://businessday.ng/news/article/step-by-step-calculation-what-to-know-about-deductions-and-personal-income-tax/

Not legal or tax advice.