How to Hire Employees in Nigeria

Explore the advantages of hiring in Nigeria, a country known for its strategic location and vibrant business environment. With a skilled workforce and thriving industries such as technology, manufacturing, and tourism, Nigeria offers access to diverse talent pools and promising growth opportunities within Central Africa's dynamic market.
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Nigeria’s dynamic economy, driven by its substantial oil and gas resources, positions it as an emerging global force, offering vast opportunities for growth and investment. Its diverse labor market, especially strong in sectors like agriculture, technology, and services, provides access to a wealth of skilled professionals. The country’s strategic geographic position and economic resilience make it an attractive destination for expanding operations within Africa. With competitive labor costs and a robust trade balance, Nigeria is well-suited for entities aiming to leverage local talent and resources to bolster their presence on the continental and international stages.

What you need to know before hiring employees in Nigeria

Job market in Nigeria

  • Nigeria’s job market is a critical indicator of economic vitality, reflecting the nexus of opportunity and growth within the country. As sectors like technology, agriculture, healthcare, and renewable energy thrive, they offer a spectrum of roles from tech innovation to sustainable farming. 
  • The job market here isn’t just about employment; it’s a force driving economic dynamism, fostering innovation, and enhancing productivity. With a burgeoning youthful demographic and an uptick in digital integration, the demand for skilled professionals is on the rise. Abundant natural resources further bolster opportunities, setting the stage for robust job creation and economic enrichment. 
  • As Nigeria capitalizes on its entrepreneurial energy and demographic advantages, the job market stands poised to propel inclusive development and prosperity, solidifying its role as a cornerstone of national progress. This evolving landscape offers promising prospects for businesses looking to tap into a vibrant and resourceful workforce.

Nigeria Hiring Trends

Nigeria's labor market in 2024 is shaped by pivotal trends that underscore strategic hiring opportunities and challenges:

  • As Nigeria continues to diversify away from oil, sectors like ICT and manufacturing are set to expand. Companies investing in these areas will benefit from hiring local expertise, enhancing their capacity for innovation and operations.
  • With Foreign Direct Investment expected to rise, particularly in tech-driven sectors, there is a significant opportunity for hiring in Nigeria, focusing on roles that support digital transformation and infrastructure expansion.
  • Ongoing fiscal and monetary reforms are poised to stabilize the economy, creating a conducive environment for sustained hiring. Companies can leverage this stability to plan long-term workforce expansions.
  • Significant public investment in infrastructure suggests robust hiring in construction, engineering, and related fields. This trend will facilitate the development of essential facilities and services, bolstering economic growth and employment.
  • As efforts to improve security in key regions advance, businesses can expect a more secure operating environment, encouraging the hiring of a broader range of professionals and potentially opening up previously inaccessible markets.
  • The evolving consumer landscape, influenced by gradual economic recovery, will likely increase demand for professionals in retail, consumer services, and marketing, aligning with growing spending power and market confidence.

How to hire employees from Nigeria

1. Set up an entity in the country

Establishing a legal entity in Nigeria is crucial for businesses aiming for sustainable growth or a lasting presence in the market. This involves selecting a suitable business structure, such as a Limited Liability Company (LLC) or a Public Limited Company (PLC), and registering with the Corporate Affairs Commission (CAC). Additionally, obtaining a Tax Identification Number (TIN) from the Federal Inland Revenue Service (FIRS) is essential for tax compliance. While the process can be complex and time-consuming, seeking professional assistance or legal advice can ensure a smooth and successful establishment of the entity, paving the way for business operations in Nigeria.

2. Hire independent contractors

Hiring independent contractors in the Nigeria offers flexibility and can be a cost-effective solution for businesses needing specialized skills or temporary project support. To enlist the services of contractors, companies need to create a detailed agreement outlining the project scope, duration, payment terms, and respective responsibilities. Adhering to Czech labor regulations is crucial to prevent any misinterpretation of their status. Contractors are accountable for managing their taxes and social security payments, streamlining payroll procedures for the employing organization.

3. Partner with an EOR in the country

Partnering with an Employer of Record (EOR) in the Nigeria can streamline the process of hiring and managing employees, especially for companies without a local entity. An Employer of Record takes charge of all legal obligations, payroll management, tax matters, and HR duties, freeing up businesses to concentrate on their primary activities. This collaboration proves especially advantageous for firms seeking to explore the market without a full-scale establishment or for those requiring rapid talent integration in accordance with local labor regulations. By harnessing the proficiency of an EOR, enterprises can adeptly address workforce requirements while upholding compliance with Nigeria's regulatory framework.

Employment Laws You Must Know Before Hiring in Nigeria

Compliance risk while hiring in Nigeria

When hiring in Nigeria, businesses face compliance risks due to the complex legal framework governing employment. Nigerian labor laws can be intricate, and failure to adhere to them may result in penalties or legal consequences. Some key areas to consider include the necessity for clear and comprehensive employment contracts that align with local regulations, meeting the monthly minimum wage requirement, ensuring compliance with health and safety standards to prevent workplace accidents, and providing mandatory employee benefits such as sick leave and severance pay as mandated by law.

Key Aspects of Nigerian Labor Law:

Employment Contract: The employment contract in Nigeria should delineate essential details such as the names and addresses of both parties, the commencement date of employment, job location(s), a comprehensive job description, base salary along with any additional compensation or benefits, prescribed working hours, entitlement to annual leave, terms regarding termination notice, probationary period, and adherence to company policies on IT practices. Although oral agreements hold legal weight, it's advisable to formalize contracts in writing for clarity and reference. Typically, contracts are indefinite but may be for a fixed term not exceeding two years. Remuneration should be specified in Nigerian Naira.

Working Hours:In Nigeria, the typical workweek comprises 48 hours, equivalent to 8 hours of work per day. Alternatively, a 40-hour workweek, with each day spanning 8 hours, is also prevalent.


In Nigeria, there is no statutory requirement regarding the amount of overtime compensation, but the conditions for overtime should be clearly stipulated in the employment agreement.

Minimum Wage

In Nigeria, the current minimum wage stands at 30,000 NGN per month as mandated by the national government.

Payroll laws in Nigeria 

In Nigeria, payrolls are processed on a monthly, bi-weekly, or weekly basis. Employees must receive their salary payments at least once every month.

Employment benefits in Nigeria

Leave Policies in Nigeria

Paid Time Off:

After completing one year of employment, workers are granted six days of compensated annual leave. It is customary to provide seven days from the outset of employment. Employers may choose to allow unused leave to be carried forward.

Public Holidays:

There are 10 national holidays in Nigeria.

Sick Days:

Workers are granted 12 days of compensated sick leave annually upon submission of a medical certificate following a two-day absence. The employer covers this at the employee's full salary.

Maternity Leave:

In the public sector, women are granted a 16-week maternity leave at full pay, while those in the private sector are eligible for a 12-week leave with 50% of their average wage. This benefit is available after six months of continuous employment with the company.

Paternity Leave:

Men are entitled to a paternity leave of 14 working days.

Public Health Insurance 

In the Nigeria, public health insurance is a mandatory system where residents are covered by state-provided healthcare. Contributions are split between employers and employees, with the government covering individuals who are unemployed, students, and retirees. This system ensures comprehensive medical care for all insured persons, including general and specialist medical services, hospitalization, prescriptions, and maternity care. The system is funded primarily through payroll deductions and is managed by the Czech Social Security Administration. It aims to provide equitable access to healthcare regardless of one's financial situation, making it a cornerstone of the Czech social welfare system.

Filing tax in Nigeria

Income Tax:

In Nigeria, income tax is structured progressively, meaning that the rate increases with higher income brackets. This system ensures that individuals contribute to public finances according to their earning capacity. The progressive nature of the tax system ranges from lower percentages for basic earnings to higher percentages for substantial incomes. This approach helps to balance the tax burden among citizens, ensuring that those with greater financial resources contribute more. The income tax structure is designed to support social services and infrastructure while promoting fairness and economic equity across different income groups. For a comprehensive view of Nigeria tax structure, please refer to our detailed guide.

Other Tax and Social Security Contributions:

In Nigeria, both employers and employees are required to contribute to various statutory funds to ensure comprehensive social security and training benefits. Employers contribute to pensions, the National Social Insurance Trust Fund (NSITF), and the Industrial Training Fund (ITF), which supports employee development and safety. Employee contributions are directed towards their pensions and the National Housing Fund, which aids in facilitating affordable housing. These mandatory contributions are essential for fostering a supportive work environment and enhancing employee welfare, aligning with national efforts to provide social security and improve living conditions. For a comprehensive view of Nigeria tax structure, please refer to our detailed guide.

Business culture in Nigeria 

Business culture in Nigeria is distinct and knowing its nuances can significantly enhance professional interactions and operations:

  • Personal relationships play a critical role in Nigerian business culture. Building trust and rapport through face-to-face meetings is highly valued and often considered a prerequisite before any formal business dealings.
  • Nigerians typically prefer direct and expressive communication. It's common for conversations to include animated gestures and a friendly tone, which helps in building personal connections and conveying sincerity.
  • Respect for hierarchy is deeply ingrained in Nigerian business environments. Decisions are usually made by senior executives, and it's important to acknowledge the rank and title of individuals during interactions to maintain respect and decorum.
  • The concept of time in Nigerian business culture can be flexible, with meetings and decisions often taking longer than anticipated. Patience and adaptability are key when scheduling and conducting business activities.
  • Negotiations in Nigeria can be vigorous and require patience. It's common for Nigerians to expect some back-and-forth discussion, so initial offers should allow room for negotiation. Demonstrating respect for the other party’s needs while negotiating can lead to more favorable outcomes.

Top sectors to hire from in Nigeria

1. Oil and Gas

This sector remains a cornerstone of Nigeria’s economy, employing a significant number of individuals across various capacities, from exploration to refining. Despite the volatility of global oil prices, the industry continues to offer diverse job opportunities, especially for skilled workers in engineering, geology, and management.

2. Technology

As Nigeria embraces digital transformation, the technology sector is rapidly expanding, creating a plethora of jobs. Key cities like Lagos and Abuja are becoming vibrant tech hubs, attracting both startups and multinational firms that demand expertise in software development, data analysis, and cybersecurity.

3. Agriculture

Employing millions, agriculture is the backbone of Nigeria's employment landscape, particularly in rural areas. The government’s focus on modernizing this sector promises enhanced productivity and continued job creation, spanning from traditional farming to innovative agribusiness.

4. Services

With a significant contribution to GDP, the services sector, especially finance, banking, insurance, and telecommunications, is burgeoning. This growth is spurred by increasing urbanization and consumer demand, leading to a rise in opportunities in customer service, IT support, and sales roles.

5. Manufacturing

While not as dominant as other sectors, manufacturing in Nigeria is gaining traction due to government incentives aimed at diversifying the economy. This sector offers jobs in industrial production, particularly in areas linked to domestic raw materials and the broader African market.

Top cities to hire from Nigeria 

When considering top cities in Nigeria for recruiting talent, these urban centers stand out for their economic activity, educational institutions, and sectoral strengths:

1. Lagos

Nigeria’s commercial heart, Lagos is a prime location for talent in finance, technology, and creative industries. It hosts a vast array of corporate headquarters and a burgeoning tech startup ecosystem, making it a top choice for companies seeking diverse skills.

2. Abuja

As the capital city, Abuja is not only the administrative hub but also a growing center for ICT and service-oriented businesses. Its planned structure and concentration of government bodies make it ideal for policy-driven roles and public sector opportunities.

3. Port Harcourt

Known for its pivotal role in the oil and gas industry, Port Harcourt is crucial for hiring in energy sectors. The city offers a wealth of experienced professionals in engineering, geology, and various technical fields related to energy production and distribution.

4. Kano

As one of the oldest cities and a major industrial center in Northern Nigeria, Kano is vital for manufacturing and agricultural sectors. It provides access to skilled labor in agribusiness, textile, and manufacturing, supporting both local and international operations.

5. Ibadan

Located in the southwest, close to Lagos, Ibadan is an emerging hub for both education and technology. With several tertiary institutions, it is a source of young, educated talent in fields ranging from technology to professional services.

Hire in Nigeria compliantly with Gloroots

Gloroots, as an Employer of Record (EOR) in Nigeria, offers a streamlined solution for businesses aiming to establish and expand within the Nigerian market. Our EOR platform enables rapid onboarding of candidates, facilitating swift operational setup while maintaining adherence to both local and international regulatory standards. Tailored to support businesses of varying sizes, Gloroots alleviates the complexities involved in payroll management, benefits administration, and tax obligations, removing the need to set up a local entity. This service empowers companies to efficiently assemble and oversee a remote workforce in Nigeria. For further details on how Gloroots can assist with your recruitment needs in Nigeria, please reach out to us.

Frequently Asked Questions 

What legal requirements must be met when hiring employees in Nigeria?

Employers must register with the Corporate Affairs Commission and comply with regulations under the Nigerian Labour Law, including contract terms, minimum wage, and working hours. Additionally, employers need to register with the Nigerian Social Insurance Trust Fund (NSITF) for employee compensation and the Pension Commission (PENCOM) for pension contributions.

How can foreign companies legally hire staff in Nigeria?

Foreign companies looking to hire in Nigeria can set up a legal entity such as a branch or a subsidiary, or they can hire through an Employer of Record (EOR) service. An EOR handles all local employment responsibilities, ensuring compliance with Nigerian employment laws and regulations without the need for the foreign company to establish a direct legal presence.

What are the key considerations for drafting employment contracts in Nigeria?

Employment contracts in Nigeria should clearly state the terms of employment, including job description, salary, benefits, working hours, and termination conditions. It's important to ensure that these contracts adhere to local labor laws to avoid legal disputes. Contracts should also address any probationary periods, confidentiality obligations, and non-compete clauses if applicable.

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