G-P provides employer of record services for customers that want to hire employees and run payroll without first establishing a branch office or subsidiary in Nigeria. Your candidate is hired via G-P’ Nigeria PEO in accordance with local labor laws and can be onboarded in days instead of the months it typically takes. The individual is assigned to work on your team, working on your company’s behalf exactly as if he or she were your employee to fulfill your in-country requirements.
Our Global Employer of Record solution and Global PEO service enable customers to run payroll in Nigeria while HR services, tax, and compliance management matters are lifted from their shoulders onto ours. As a Global PEO expert, we manage employment contract best practices, statutory and market norm benefits, and employee expenses, as well as severance and termination if required. We also keep you apprised of changes to local employment laws in Nigeria.
Your new employee is productive sooner, has a better hiring experience and is 100% dedicated to your team. You’ll have peace of mind knowing you have a team of dedicated employment experts assisting with every hire. G-P allows you to harness the talent of the brightest people in more than 185 countries around the world, quickly and painlessly.
Nigeria is located in West Africa on the Gulf of Guinea. Nigeria is the most populous country in Africa and the seventh most populous country in the world, with 184 million people. 500 different ethnic groups live in Nigeria, the largest of which are the Hausa, Igbo, and Yoruba. The official language is English.
When negotiating terms of an employment contract and offer letter with an employee in Nigeria, it may be useful to keep the following in mind:
Employment Contracts in Nigeria
Fixed term contracts are permitted.
It is legally required to put a written employment contract in place in Nigeria, in the local language, which spells out the terms of the employee’s compensation, benefits, and termination requirements. An offer letter and employment contract in Nigeria should always state the salary and any compensation amounts in Nigerian naira rather than a foreign currency.
Working Hours in Nigeria
The labor law requires one 24 hour rest period every seven days and a one hour break per six hours of work.
Holidays in Nigeria
- 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
Vacation Days in Nigeria
Employees are generally entitled to six days of paid annual leave after one year of employment.
Nigeria Sick Leave
In general, employees are entitled to 12 days of paid sick leave per year.
Maternity/Paternity Leave in Nigeria
Female employees are generally entitled to 12 weeks of maternity leave at 50% of pay.
Paid paternity leave is available in the Lagos and Enugu States of 2 weeks and 3 weeks respectively.
Health Insurance in Nigeria
Nigeria has a National Health Insurance Scheme. Private health insurance is also available.
Nigeria Supplementary Benefits
Common benefits include:
- pension plans
- dental benefits
- life insurance
- stock options
- car allowance
- mobile phone
- medical insurance
Some companies pay a 13th month bonus, but it is not statutorily required. Annual bonuses and performance-based bonuses are common in Nigeria.
Termination/Severance in Nigeria
Nigeria has at-will employment. In general, employers should provide written notice of dismissal and give the employee an opportunity for defense.
Probationary periods of up to three months, or longer if negotiated, are permitted.
There is no statutory severance pay.
Paying Taxes in Nigeria
Employees who make more than ₦3,000 contribute 2.5% of their wages to the National Housing Fund.
Contributory Pension Scheme:
- Employers contribute at least 10% of employee monthly emolument
- Employees contribute at least 8% of monthly emolument
This information is provided as generally accepted information and is not intended as advisory services.
Establishing a branch office or subsidiary in Nigeria to engage a small team is time-consuming, expensive and complex. Nigerian labor law has strong worker protections, requiring great attention to detail and an understanding of local best practices. G-P makes it painless and easy to expand into Nigeria. We can help you hire your candidate of choice, handle HR matters and payroll, and ensure that you’re in compliance with local laws, without the burden of setting up a foreign branch office or subsidiary. Our Nigeria PEO and Global Employer of Record solution provides you peace of mind so that you can focus on running your company.
If you would like to discuss how G-P can provide a seamless employee leasing or PEO solution for hiring employees in Nigeria, please contact us.