African Market Entry and Expansion for Multinationals

Nigeria

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Hiring Employees in Nigeria

Spoken Language

English is the official language, but Yoruba, Hausa and Igbo are the major recognized languages.

Currency

Nigerian naira (₦)

Average hours & Overtime

Regular hours and overtime pay rates are set in the employment contracts or collective bargaining agreements. Stipulated work hour is 40 hours per week (5 days) excluding 1 hour lunch break.

Wages and salaries

There is a mandated minimum wage of N30, 000 (US$82.84) per month.

Observed National Holidays and vacation

Paid holidays include New Year’s Day, Good Friday, Easter Monday, Workers’ Day, Democracy Day, Nigerian Independence Day, Christmas, Boxing Day, Eid al-Fitr, Eid al-Adha and Eid-el-Malud.

Paid Leave

SICK LEAVE – employees are entitled to 12 days’ sick leave for a temporary illness that must be certified by a medical practitioner.

REST HOURS – in every period of 7 days’ work, employees are entitled to at least a day off. Also if an employee works for more than 6 hours a day, he/she must be given 1 hour of interval on that day.

WORK HOURS – Employees are to work 40 HOURS a week.

HOLIDAYS – employees after 12 months of continuous service, is entitled to a holiday with full pay of at least 6 working days ( this is exclusive of all public holidays.

MATERNITY LEAVE – all female staff are entitled to a minimum of 12 weeks’ maternity leave with full pay

Expats, Visas, & Work Permits

Employers are responsible for obtaining work & residence permits for their expatriate employees. Foreign investors must be granted expatriate quota approval to employ expatriates.

Termination Notice

Where employee has been in employment for a period of 3  months or less, either party may terminate the contract with a minimum of 1 day notice

Where employee has been in employment for a period of 3 months but less than 2 years, either party may terminate the contract with a minimum of 1 week notice

Where employee has been in employment for a period of 2 years but less than 5 years, either party may terminate the contract with a minimum of 2 weeks’ notice

Where employee has been in employment for a period of 5 years or more, either party may terminate the contract with a minimum of 1 month notice

When giving notice of 1 week or more, it must be in writing.

Notice period depends on the contractual agreement, it can extend beyond 1 month based on the agreement between the parties involved.

Statutory Deductions

  • Employee Pension Contribution-  (Min of 8% of Basic,Housing and Transport Allowance)
  • Employer  Pension Contribution- Min of -10% of Basic,Housing and Transport Allowance)
  • National Housing Fund (NHF) -2.5% of Basic Salary
  • PAYE (Income Tax) -Based on Nigeria PIT law
  • National Social Insurance Trust Fund (NSITF) – 1% of Gross Income
  • Industrial Training Funds (ITF) – 1% of Gross Income
  • Group Life Insurance

Health Insurance

  • Organizations who have above 5 staff must put them on the health insurance scheme.
  • With reference to the National Health Insurance Scheme Act, this applies to employers which have a minimum of 10 employees. 

Important Information

Foreign employees who fail to renew their work permit with the government face up 3 years in prison and a fine of 500,000 naira or both.

Business Inquiries

Disclaimer: For Business inquiries only!