Nigeria

Employer of Record & PEO in Nigeria

Hire & manage teams remotely in Nigeria without a local entity. We handle HR compliance, payroll & taxes so you can focus on your business.

Native Language

Hausa, Igbo, Yoruba

GDP

$514 Billion

Payroll Frequency

Monthly

Capital city

Abuja

Per Capita

$2,432

Internet

Medium

Currency

Nigerian Naira (NGN)

Time Zone

UTC + 1

English Speaking

<50%

Population

201 Million

Employment Cost

Low

Cost of Living

Low

How NNRoad Employment & PEO Services Work?

NNRoad provides professional employment organization (PEO) & employer of record (EOR) services for companies looking to hire and manage teams in Nigeria. Registering a legal entity in Nigeria as a means for employment is an outdated practice that takes both time (months) and money (thousands of USD). NNRoad’s employer of record and PEO services enables companies to hire and manage employees in Nigeria in full accordance with local labor laws in under a week.

Employer of Record in Nigeria

Employer of Record (EOR) services are for companies who do not have a legal entity in Nigeria, but who want to hire in Nigeria. Employment and full liability are outsourced to NNRoad.

➊ You interviews & select the candidates you want to hire in Nigeria.
➋ NNRoad arranges a local labor contract with your new employee.
➌ NNRoad arranges a service contract between your organization & NNRoad.
➍ NNRoad organizes, manages & processes  payroll in Nigeria in full compliance with local employment laws.
➎ You maintain a normal working relationship and manage your team in Nigeria while NNRoad manages payroll & HR liabilities.

  • Engaging employees through local labor contracts including contract administration, engagement, extension termination and conversion to permanent hire
  • On-boarding and off-boarding employees following local labor law practice
  • Registration of contractors/employees with social security board and with tax office
  • Complete payroll solution and mandatory benefit administration
  • Employee management according to local laws, including employee record, time keeping, bonus and allowance management, expense and claims etc
  • Payments of local taxes and local social contributions to the relevant authorities
  • Year-end tax filing, if required
  • Payment management, including invoicing customers/clients and salary payments
  • Support with Visa/Immigration services

Payroll & PEO in Nigeria

Professional Employment Organization (PEO) services are for companies who have a legal entity in Nigeria, and want to outsource their payroll. Employment liabilities are shared between your organization and NNRoad.

➊ You interviews & select the candidates you want to hire in Nigeria.
➋ NNRoad organizes, manages and processes payroll for your local employees in full compliance with local employment laws.
➌ You maintain a normal working relationship and manage your team in Nigeria while NNRoad manages payroll & HR compliance.

  • Registering and de-registering the necessary company and personnel information for payroll calculation in compliance with local rules
  • Registering all local employees with the social security board, if required
  • Calculation of gross salary, salary deductions, such as social insurances, unpaid leaves, etc., and net salary based on information provided by the Company including irregular payments such as incentive/bonus, allowance, etc. if applicable
  • Pro-rata calculation for people who join/resign
  • Providing a monthly payroll summary to the Company
  • Monthly issue of electronic pay-slips
  • Prepare annual payroll related reconciliation report

Advantages of NNRoad's Nigeria Employment Services

  1. With EOR/PEO solutions you can manage client meetings, sales, quality control, marketing, R&D and customer support without a local company in Nigeria.
  2. Pay as you go
  3. ​​Dedicated account manager – One point of contact for multiple locations
  4. Employment & termination processing
  5. Complete payroll solution and statutory benefit according to local laws
  6. With EOR/PEO solutions you can hire staff while waiting for the registration of your company in Nigeria.
  7. NNRoad only works with professional locally licensed partners
  8. GDPR compliant
  9. NNRoad manages employee record timekeeping, bonus and allowance, expenses claims and personal leaves according to local law.
  10. NNRoad provides foreigner VISA application services, if needed

Employment Compliance in Nigeria

Taxes & Payroll in Nigeria

Employee Income Taxes:

Individual income tax rates in Nigeria are based on progressive tax brackets.

Tax Brackets

7%: 0 – 300,000 NGN
11%: 300,000 – 600,000 NGN
15%: 600,000 – 1,100,000 NGN
19%: 1,100,000 – 1,600,000 NGN
21%: 1,600,000 – 3,200,000 NGN
24%: >3,200,000 NGN

Sample Calculation

Yearly income = 1,000,000 NGN
7% * 300,000 = 21,000
11% * 300,000 = 33,000
15% * 400,000 = 60,000
21,000+33,000+60,000 = 114,000

Yearly income tax = 114,000 NGN

Employer Costs in Nigeria

Employer Contributions:

10% – Employers must pay 10% of the employee’s salary for social security contributions.

Employee Contributions:

8% – Employee must contribute  8% of their earnings towards social security.

Working Hours in Nigeria

Working Hours per Week

The work week in Nigeria typically does not exceed 40 hours per week. Overtime and overtime laws vary by industry and are oftentimes determined at the discretion of the employer.

Benefits & Insurance in Nigeria

Social Security

Nigeria has a social security system based on a pay-as-you-go model. The social security blanket covers some basic needs.

Termination Laws in Nigeria

Termination

Nigeria has laws and regulations in place for what constitutes a lawful and unlawful termination. A termination notice must be issued prior to the dismissal of the employee. Employees with up to 3 months of employment require a 1 day notice. Employees with between 3 months and 2 years of employment require a 1 week notice. Employees with 2 to 5 years of experience require a 2 weeks notice. Employees with 5 years of employment or more require a 1 month termination notice. Severance pay can be substituted for notice period.

Contact us for more information.

Severance

Severance in Nigeria is determined by pre-written and signed contracts and is only applied if the employee is terminated illegally. 

Public Holidays in Nigeria

Public Holidays in Nigeria

Employees are entitled to 6 paid public holiday days off per year after one year of employment with the employer.

  • New Year’s Day
  • Good Friday
  • Easter Monday
  • Labor Day
  • Democracy Day
  • Id el Fitri
  • Id el Kabir
  • National Day
  • Id el Moulud
  • Christmas Day
  • Boxing Day

Employment Contract in Nigeria

Employment Contract

Labor contracts for employment in Nigeria must be written out in the local language. The contract must state the salary, benefits, terms of compensation and termination scenarios. Along with the labor contract, an offer letter in Nigeria must always mention salary and compensation amounts in NGN.

Types of Leaves in Nigeria

Sick Leave

Employees in Nigeria are entitled to 12 days of paid sick leave per year.

Maternity Leave

Female employees are entitled to 12 weeks of paid maternity leave at 50% of normal pay.

Paternity leave in Nigeria is only available in the state of Lagos and Enugu. In Lagos, new fathers can take 2 weeks of paternity leave. In Enugu, new fathers can take 3 weeks of paternity leave.

Immigration Laws in Nigeria

To apply for a Nigerian alien work permit you must:

  • Sign an employment contract offer with a company based in Nigeria.
  • Fill out the online application  for an work visa through the Nigerian Immigration Service website.
  • Contact your nearest Nigerian embassy in your country with the relevant paperwork and your receipt or proof of payment for the online application fee.

Under normal circumstances, it takes 7 working days for the application to be processed. After obtaining an STR (Subject to Regularization) visa, the employee can travel to Nigeria and do the following:

  • Apply for regularization
  • Apply for a CERPAC card at the National Immigration Service
  • Obtain an Aliens Registration Card

Upon receiving a CERPAC card, the employee is legally entitled to live and work in Nigeria. The CERPAC is valid for two years and includes multiple entries. It can be renewed when the 2 years are up.

Resources

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