🇳🇬 Hiring in
Nigeria
What every employer needs to know before hiring in Nigeria — contracts, payroll setup, social security, and HR compliance obligations.
Key Employment Facts — Nigeria
Minimum Wage
NGN 70,000
Annual Leave
21 days
Notice Period (min)
30 days
Probation Period (max)
6 days
Maternity Leave
16 weeks
13th Month Pay
Not required
How to Hire in Nigeria — Step by Step
Verify your hiring structure
Decide whether to hire via a local legal entity, a Professional Employer Organisation (PEO), or an Employer of Record (EOR). An EOR lets you hire in Nigeria without setting up a local company.
Issue a compliant employment contract
All employees in Nigeria must receive a written employment contract. It must cover job title, salary, working hours, notice period, and leave entitlements before or on the first day of employment.
Register for payroll and tax
You must register with the relevant Nigeria tax authority before making any salary payments. Payroll must be run in local currency and employer contributions must be filed on time.
Enrol in social security
Employers in Nigeria are required to enrol employees in the national social security scheme from day one. Both employer and employee contributions are mandatory.
Run compliant payroll
Pay must meet the statutory minimum wage, be paid on the agreed frequency, and include all mandatory deductions. Keep payslip records for the legally required retention period.
Understand termination rules
Notice periods, severance, and redundancy rules in Nigeria are governed by employment law. Always seek local legal advice before terminating an employment contract.
Contractor Classification Rules — Nigeria
How Nigeria distinguishes employees from independent contractors, and the risks of misclassification.
Classification Test
Nigeria follows common law principles for worker classification, focusing on control test, integration test, and economic reality test to distinguish between employees and independent contractors
Key Classification Factors
- ✓Control over how, when and where work is performed
- ✓Integration into business operations
- ✓Economic dependency on single employer
- ✓Provision of own tools and equipment
- ✓Financial risk and opportunity for profit
- ✓Exclusivity of services
- ✓Method of payment arrangement
Misclassification Penalties
Employers may face back payment of employment benefits, pension contributions, tax liabilities, interest charges, and potential prosecution for tax evasion under FIRS regulations
Safe Harbour Criteria
Written independent contractor agreement, contractor provides own equipment, serves multiple clients, invoices for services, bears financial risk, and controls method of work execution
Nigeria labor law determination heavily relies on judicial precedent and common law principles inherited from British legal system. Classification disputes resolved through Industrial Court system
Work Permits — Nigeria
Main visa and work permit routes for hiring foreign nationals in Nigeria.
Temporary Work Permit (TWP)
Processing
14–45 days
Validity
3 months
Cost
NGN 150,000
Sponsor Needed
Yes
Short-term work permit for specific projects or assignments
Official source ↗Business Permit
Processing
21–60 days
Validity
12 months
Cost
NGN 300,000
Sponsor Needed
No
For foreign investors and business owners establishing operations in Nigeria
Official source ↗Intra-Company Transfer Permit
Processing
25–75 days
Validity
36 months
Cost
NGN 200,000
Sponsor Needed
Yes
For employees transferred within multinational companies to Nigerian subsidiaries
Official source ↗Combined Expatriate Residence Permit and Aliens Card (CERPAC)
Processing
30–90 days
Validity
24 months
Cost
NGN 250,000
Sponsor Needed
Yes
Primary work permit for skilled foreign workers requiring company sponsorship and quota allocation
Official source ↗EOR Intelligence
Skip the entity setup — hire via EOR in Nigeria.
An Employer of Record handles all local compliance on your behalf.
This guide is for informational purposes only and does not constitute legal or HR advice. Employment law in Nigeria is subject to change. Always consult a qualified local employment lawyer before hiring.
About This Guide
- ✓ Sourced from official government publications
- ✓ Updated monthly — always current rules
- ✓ For guidance only — not legal advice
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