🇳🇬 Hire in Nigeria: cost, rules and best EOR options
Africa's largest English-speaking tech talent base with a young workforce, though FX controls, naira volatility and power infrastructure require planning.
- Employer on-costs: 11–12% of gross salary (on a $60,000 salary, about $66,600–$67,200 total)
- EOR onboarding: not verified; own entity: not verified
- Probation: Contractual; commonly 3-6 months. No statutory maximum (general knowledge).
- Currency: Nigerian naira (NGN)
- Data confidence: low, verified 2026-10-05
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What it costs to employ someone in Nigeria
Employer on-costs run roughly 11–12% on top 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. |
Employer withholds PAYE under the Nigeria Tax Act 2025 (effective 1 Jan 2026; bands 0% on first NGN 800,000, then 15%, 18%, 21%, 23% and 25% above NGN 50m), the 8% employee pension share and NHF 2.5% for employees earning over NGN 30,000 a year.
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)
Employment rules at a glance
| 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 & 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). |
| 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 |
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.
Employee or contractor in Nigeria?
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.
Compare contractor vs employee cost →
Hiring through an EOR in Nigeria
A foreign company needs a Nigerian limited company (CAC registration) or EOR. EORs handle PAYE, pension and NSITF. Timelines not verified.
Typical onboarding: EOR not verified; own entity not verified. WAT, UTC+1 all year with no DST; 5-6 hours ahead of US Eastern.
Providers worth shortlisting
| Provider | Best for | EOR pricing | Coverage | |
|---|---|---|---|---|
| Deel | Companies that want one platform for contractors, EOR and a US PEO, with transparent per-seat list prices. | $599 per EOR employee per month (public list price, checked 2026-10-05) | 150+ countries (vendor claim, per Deel's own and third-party descriptions) | Visit Deel |
| Remote | Teams that want a published price for each product (EOR, global payroll, contractors, contractor of record, US PEO) and an affiliate program with 12-month revenue share. | $699 per employee/month (public list price, checked 2026-10-05) | 90+ countries for EOR (vendor pricing page claim) | Visit Remote |
| Rippling | Companies already running (or willing to adopt) a unified HR, IT and finance platform who want global hiring as an add-on module. | — | Visit Rippling | |
| Oyster | Distributed teams that want published EOR and contractor prices and a long-running affiliate program with tiered revenue share. | $699 per employee/month (public list price, checked 2026-10-05); annual discounts available; refundable deposit required | 120+ countries EOR; contractors in 180+ countries (vendor claim) | Visit Oyster |
| Papaya Global | Mid-size and larger companies that need multi-country payroll orchestration and workforce payments, and will go through a sales process. | 160+ countries (vendor claim as repeated on FlexOffers listing and third-party pages) | Visit Papaya Global | |
| Multiplier | Cost-conscious teams that want EOR priced below $500 per employee with an annual discount. | Third-party summary of Multiplier's pricing: EOR from $459/employee/month on annual contracts and $499 on monthly contracts (not confirmed; multiplier pricing page returned 403 to our fetch) | — | Visit Multiplier |
| Remofirst | Small teams that want the lowest published EOR starting price and a free contractor tier. | Starting at $199 per person/month (public list price, checked 2026-10-05); 'no hidden fees, setup fees, or minimum contract terms' per vendor page | 185+ countries for EOR (vendor claim) | Visit Remofirst |
| Pebl (formerly Velocity Global) | Companies that want an EOR with a tiered reseller/partner program and are comfortable with a recently rebranded vendor. | Third-party reports a flat $399 per employee/month (not confirmed on vendor page; hellopebl.com/pricing returned 404) | 185+ countries (third-party report) | Visit Pebl (formerly Velocity Global) |
Paying and covering your team in Nigeria
Related
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.