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Nigeria,
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SALARY PAYMENT IN Naira (NGN)

CONTRACT LANGUAGE English

PAYROLL TAX 1.00% – 11.00%

PAYROLL CYCLE Monthly

TIME TO HIRE 24 hours
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The Horizons PEO solution allows you to hire in Nigeria, without setting up a costly subsidiary.

Horizons has the most fair price point for Nigerian PEO on the market with zero hidden fees. Contact us for a cost breakdown

With extensive experience in the Nigeria hiring market, Horizons can hire new employees in as little as 24 hours.

Horizons' HR management platform was built to easily manage Nigerian & international teams, based on client feedback at each step of development.

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Nigeria

In this guide

Hire Employees in Nigeria — Overview

Nigeria: Business Environment

Recruiting employees in Nigeria

Onboarding employees in Nigeria

FAQs

Hiring in Nigeria, Made Easy

Client Testimonials

Simple, compliant hiring with Horizons PEO

Hire Employees in Nigeria — Overview

Nigeria boasts Africa’s largest consumer market, a thriving startup and fintech scene, as well as a well-educated, English-speaking labor force, making it a prime destination for international and remote hiring.

Economically, Nigeria has been on a significant growth trajectory over the last 30 years: Nigerian GDP at purchasing power parity (PPP) went from $282 billion in 2000 to $1.15 trillion in 2021. Citigroup has even estimated that Nigeria will have the highest GDP growth in the world between 2010 and 2050.

For companies considering the benefits of overseas and remote employee hire, Nigeria is an important location to consider.

Facts & Stats

Population 225,082,083 (labor force 64.5M)	Capital City Abuja	Languages Spoken English [official]
Currency Nigerian Naira (NGN)	GDP per capita $2,085	Ease of Doing Business 131st in the world
Minimum Wage NGN 30,000/month	Average Wage NGN 339,000/month	Paid Leave 6 days

Nigeria: Business Environment

Nigeria’s is the largest economy on the African continent, representing the largest consumer market. The business environment benefits from a young, educated, population that has been central to the development of Nigeria’s burgeoning tech and creative industries. Furthermore, a lack of restrictions on foreign investment male it a logical location for African expansion from international companies.

The upward progression of Nigeria’s ranking in the World Bank’s Ease of Doing Business report is indicative of Nigeria’s progress in terms of the physical infrastructure, political stability, and legal regulation required of a modern economy. In fact, according to one Citigroup report, Nigeria is predicted to have the most significant GDP growth between 2000 and 2050.

Business outlook in Nigeria

For Covid-related reasons the Nigerian economy followed much of the world in entering recession. However, the economy recovered through 2021 with an annual GDP growth rate of 3.6%. The AFDB forecast an average growth rate of 3.2% between 2022 and 2023.

Business regulation in Nigeria

Employment relationships in Nigeria are covered under several key pieces of legislation, including; the Labour Act (2004), the Factories Act (2004), the Trade Disputes Act (2004), the Employees Compensation Act (2010).

Within certain legislation, such as the Labour Act, a distinction is made between those employees engaged in unskilled labor and those working in technical or professional roles. Ultimately, Nigerian law recognises freedom of contract and employers are required to provide employees with a written contract of employment, no later than three months after the employee commences work.

Business culture in Nigeria

With over 250 different ethnic groups spread across 36 states and 1 federal capital territory, Nigeria is one of the most ethnically diverse countries in the world. Over 500 languages and regional dialects are spoken in Nigeria but English is the primary language of business. The communication style is direct and, generally, Nigerians prefer to communicate in-person or over the phone.

As with other African nations, Nigeria’s business culture is hierarchical. Respect should be shown to all colleagues, but reverence is based on seniority, both in terms of age and position. The hierarchical business culture is related, in part, to the prevalence of family owned and operated businesses in Nigeria. Families tend to have many children and it’s common for businesses to employ family members in managerial and senior roles.

Recruiting employees in Nigeria

Recruiting employees in Nigeria — Overview

Under Nigeria’s Companies and Allied Matters Act (CAMA), foreign companies must incorporate an entity in Nigeria before hiring any employees. Alternatively, foreign companies can embark on a joint venture with an indigenous company that has legal status, such as choosing to hire employees through a Nigeria PEO. As the only global PEO with an in-house recruitment team, Horizons take care of the sourcing, recruiting, and onboarding of your Nigerian workforce as well as the HR and legal compliance work.

Employers in Nigeria use a number of channels to recruit new employees. Recruitment agencies are popular as are jobs boards such as MyJobMag; Indeed; and Jobberman.

Employers must comply with Nigeria’s laws preventing discrimination during the hiring process. Maintain compliance by avoiding questions relating to; religion, sex, health (such as HIV status), and ethnic or linguistic ties.

Most important recruitment tools in Nigeria

Jobberman
jobberman.com
Jobberman is Nigeria’s leading job marketplaces. The website offers a full suite of services for both candidates and employers.

Indeed
ng.indeed.com
Recognised as the world’s largest recruitment platform, Indeed has operated its Nigerian subdomain since 2018. The site is popular among multinational companies operating in Nigeria.

MyJobMag
myjobmag.com
MyJobMag is one of Africa’s largest job portals. The website boasts over 1M active users across the four African markets it serves (Nigeria, Ghana, Kenya & South Africa).

Interviewing candidates in Nigeria

Interviewing candidates in Nigeria — Overview

An important point to be aware of in relation to interviewing candidates in Nigeria, or any scheduled event, is time-keeping. Even in business settings, Nigerians tend to be relaxed about time-keeping. This attitude says more about the traffic and disparities in physical infrastructure across Nigeria’s major population centers than it does about Nigerians themselves.

Virtual interviews are used occasionally, but job interviews tend to be conducted face-to-face in Nigeria. When recruiting for technical roles, it’s not uncommon for recruiters to ask candidates to complete assessments that assess cognitive and technical skills.

Can I ask the candidate’s previous salary in Nigeria?

Yes. There are no laws that ban Nigerian employers from asking candidates about their salary history. Questions regarding salary history are common in Nigeria and some companies request candidates to provide payslips as evidence of previous employment.

What is the typical salary increase at a new job in Nigeria?

On average, employee salaries in Nigeria tend to increase by between 6 and 10% every 19 months. This is loosely based on the Nigerian Central Bank’s target inflation rate of 6-9%.

Onboarding employees in Nigeria

Onboarding employees in Nigeria — Overview

The onboarding process is overlooked by many employers, but it is a crucial part of the recruitment process. A well thought-out onboarding process helps new employees get settled into their roles, paving the way for positive job performance and higher rates of employee engagement and retention.

There aren’t any specific requirements for the onboarding process in Nigeria. The Labour Act (2004) includes a stipulation that employers must provide the employee with a written copy of the employment contract within three months of starting the job. This three month period is based on the maximum probationary period in Nigeria.

Employment contracts in Nigeria are required by law to cover a number of points, at a minimum:

The nature of the employment, i.e. job title & duties;
Hours of work;
The notice period length and procedure;
Details on wages, i.e. agreed rate in Nigerian Naira & payroll frequency;
Holiday pay;
Conditions for incapacity due to sickness & injury;
Special conditions of the contract, i.e. benefits & entitlements.

Note that Nigerian law allows for both fixed and permanent/indefinite employment contracts, meaning the form of contract will have a bearing on its specific makeup. For example, fixed-term contracts are required to include the employment start and end date.

Best remote working tools to use in Nigeria

Following the Nigerian government’s imposition of lockdowns in response to the Covid19 pandemic in 2020, a number of companies trialed remote working policies. Many workers, particularly those working in tech jobs, went on to negotiate fully remote or hybrid working models. It should be noted, however, that irregular power supply and internet outages are common problems in Nigeria that can complicate working from home.

A number of applications are popular amongst remote workers in Nigeria.

Zoom is the most popular video conferencing platforms in Nigeria. Zoom’s partnerships with nigerian telecoms companies has enabled a direct dial-in feature. This allows participants to call in using any type of phone, a feature that is proving particularly popular amongst remote workers operating from areas where internet connectivity is variable.
Google Drive, the file sharing and cloud storage service offered by Google is used widely across Nigeria. The ability for users to collaborate on various file types in real time is particularly popular.
WhatsApp is used by businesses of all sizes for communicating between teams. The ability to integrate WhatsApp with other social media platforms such as Facebook means WhatsApp Business is particularly popular amongst smaller Nigerian businesses. WhatsApp’s popularity reflects Nigerians’ preference to communicate with colleagues over a call rather than via email or message.

Holiday schedule in Nigeria - 2023

Holiday season in Nigeria — 2023

Employees who have worked for at least 12 months with the same employer, are legally entitled to a minimum of six days of paid annual leave. Some employers allow their employees to roll untaken holidays over to the following year, however accrued leave must be taken within two years. Along with paid annual leave, public holidays are considered part of the minimum benefits that employers must provide their employees. Where public holidays fall on a working day, employees are not required to work. Certain regional public holidays exist however Nigeria celebrates 13 public holidays nationally:

Date	Holiday name
1 Jan, 2023	New Year’s Day
2 Jan, 2023	Day off for New Year’s Day
7 Apr, 2023	Good Friday
10 Apr, 2023	Easter Monday
22 Apr, 2023	Id el Fitr (Tentative Date)
23 Apr, 2023	Id el Fitr holiday (Tentative Date)
1 May, 2023	Workers’ Day
12 Jun, 2023	Democracy Day
29 Jun, 2023	Id el Kabir (Tentative Date)
30 Jun, 2023	Id el Kabir additional holiday (Tentative Date)
27 Sep, 2023	Id el Maulud (Tentative Date)
1 Oct, 2023	National Day
25 Dec, 2023	Christmas Day
26 Dec, 2023	Boxing Day

The date that a number of Nigeria’s public holidays falls is variable, being declared annually by the Nigerian government.

What is the typical salary increase employees in Nigeria expect?

Nigerian employees typically expect an annual salary increase that matches the rate of inflation. However, a consistently high rate of inflation combined with a growing population and highly competitive job market means this is not always achieved.

Across Nigeria’s professional industries, the average salary increase is typically around 5%.

FAQs

Should I hire freelancers or employees in Nigeria?

A range of factors influence the decision, including the type of work being performed, the need for training and the requirements imposed by certain company policies, such as the need for data privacy. Nigeria has a large population of freelance workers with many professionals choosing to supplement stable income through freelancing. Ultimately your decision comes down to locus of control, i.e. hiring an employee allows for increased control over work methods, place of work and hours.

Can I hire foreigners in Nigeria?

Yes, provided the foreign worker has the necessary permits and/or visas to work in Nigeria.
Foreign citizens intending to work in Nigeria need to obtain an STR visa and a CERPAC or Combined Expatriate Residence Permit and Aliens Card. The application process can be completed via the relevant Nigerian embassy or through the Nigerian Immigration Service. Alternatively, contact our in-house recruitment team for a consultation on your hiring project.

How do I open a Nigeria subsidiary?

Establishing an entity in Nigeria is a challenging process that is complicated by layers of bureaucracy at both the federal and state level. In terms of deciding on the structure of your Nigerian entity, each has certain requirements for incorporation and operational pros & cons. The other option is to work with a global PEO, such as Horizons, who can handle the recruiting and onboarding of your Nigerian workforce, along with all of your HR and legal compliance work.

How do I hire employees in Nigeria?

There are several ways to go about hiring employees in Nigeria, from online job portals to recruitment agencies. However, these types of services are restrictive in that the service offering is limited. Instead, businesses looking to expand into Nigeria choose to use a Nigeria PEO that can source, recruit and onboard employees in Nigeria whilst also being the legally compliant Employer of Record.

Hiring in Nigeria, Made Easy

Your business can easily hire employees in Nigeria without opening a local entity. We handle local employment law, complex tax regulations, and international payroll in 180+ countries worldwide. All you need to do is focus on your business.

Success stories from businesses we’ve helped enter and grow in new markets.

Client Testimonials

"As a seed-stage, London-based startup, we were initially hesitant to expand internationally due to the administrative workload involved. Horizons completely took the headache out of the process, allowing us to hire a team of software engineers in Germany."

Gabor SzedlakCo-founder & COO

"I truly appreciated the thoroughness and the professionalism of Horizons personnel while we hired internationally with them. When they advised our international expansion, they spoke confidently and were knowledgable on all subject matters pertaining to international employment."

Gary PaskyVice President of Software Development

"On deciding to begin commercial activities in Asia Pacific, we needed a provider to handle the employment and remuneration of our workforce. With Horizons the result was fast, efficient, and fit-for-purpose. We recommend Horizons as an EOR provider.”

Chris MorrellManaging Director

"The collaboration with the Horizons team is excellent. Both our local employee as well as our HQ in Germany are more than pleased with the support provided and the simplicity of the service. We can highly recommend the Horizons solution to anyone."

Christoph EngelbertCo-Founder & CTO

"We needed an EOR that could provide expert support for payroll in APAC. We are pleased with Horizons’ expertise and the fact that they are flexible, responsive, and easily accessible from Belgium. They were able to provide services within the short timeline we required."

Katia FlamandHuman Resources

Horizons has been very effective in providing our company support in all the administrative procedures, sometimes complex, required by the Singaporean administration.

Gerald iannoneSales Director

Horizons’ team provided a superb service from start to finish, making a complex process a simple one. Everything was taken care of in an efficient and accurate manner, with quick communication whenever required. Highly recommended and would use again in the future if the need arises.

Philipp RinbergerManaging Director

hire employees in

Nigeria, made easy

Simple, compliant hiring with Horizons PEO

Hire Employees in Nigeria — Overview

Facts & Stats

Nigeria: Business Environment

Business outlook in Nigeria

Business regulation in Nigeria

Business culture in Nigeria

Recruiting employees in Nigeria

Recruiting employees in Nigeria — Overview

Most important recruitment tools in Nigeria

Interviewing candidates in Nigeria

Interviewing candidates in Nigeria — Overview

Can I ask the candidate’s previous salary in Nigeria?

What is the typical salary increase at a new job in Nigeria?

Onboarding employees in Nigeria

Onboarding employees in Nigeria — Overview

Best remote working tools to use in Nigeria

Holiday schedule in Nigeria - 2023

What is the typical salary increase employees in Nigeria expect?

FAQs

Hiring in Nigeria, Made Easy

Success stories from businesses we’ve helped enter and grow in new markets.

Client Testimonials

Hire Anywhere. Today.

Nigeria,
made easy