Africa - Nigeria

Nigeria

Last updated: Jul 23, 2024

Nigeria

Currency

₦ (NGN)

Working Hours

45/Week

Nigeria is in West Africa on the Pacific Ocean Western, between Benin and Cameroon. Nigeria boasts Africa’s largest economy. Its key economic sectors include telecommunications and finance, and it’s a major oil exporter. Nigeria has a labor force of around 73 million at rates well below high-income and some middle-income countries.

Employment Contracts

Employment contracts in Nigeria are written in the local language. Within three months of the start of employment, the employer is required to provide a written statement containing details about the employment. Any changes to the employment contract terms must be in writing and provided to the employee within one month.

Working Hours

The standard working week in Nigeria consists of 48 hours, 8 hours per day. A 40-hour workweek with 8 hours per day is common as well.

Overtime

There is no legal mandate on how much overtime pay to give but the terms of overtime should be laid out in the employment contract.

Maternity, Paternity & Parental Leave

Maternity Leave

Female employees within the public sector are entitled to 16 weeks of maternity leave at 100.00% of the employee’s average pay rate. In contrast, private-sector employees are entitled to 12 weeks of paid maternity leave at 50.00% of the employee’s average salary. Employees receive this entitlement following six months of consecutive service within the company.

Paternity Leave

There is a 14 working days paternity leave for men.

Parental Leave

There are no provisions in the law regarding parental leave.

Other Types of Leave

There are no provisions in the law for additional statutory leave.

Health Insurance Benefits

Nigeria has public healthcare available, but employers often provide private healthcare insurance.

Payroll, Tax & Contributions

Employer Payroll Contributions

8.40% - Social Security (CNSS) family allowance

1.75% - Social Security (CNSS) work injury

6.25% - Social Security (CNSS) old age, disability, and survivors

0.50% - social contribution for unemployment public insurance to the National Agency for the Promotion of Employment (Agence National pour la Promotion de l’Emploi, ANPE

3% – 5% -An apprenticeship tax (taxe d’apprentissage) is payable by companies subject to business income tax in Niger at the rate of 3% on payments made to local employees and 5% on payments made to expatriate employees

16.90% (plus 3%-5%) -Total Employment Cost

Employee Payroll Contributions

5.25% - Social Security (CNSS) old age, disability, and survivors

5.25% - Total Employee Cost

Employee Income Tax

1.00% - Up to 25,000 CFA

2.00% - Between 25,001 CFA and 50,000 CFA

6.00% - Between 50,001 CFA and 100,000 CFA

13.00% - Between 100,001 CFA and 150,000 CFA

25.00% - Between 150,001 CFA and 300,000 CFA

30.00% - Between 300,001 CFA and 400,000 CFA

32.00% - Between 400,001 CFA and 700,000 CFA

34.00% - Between 700,001 CFA and 1,000,000 CFA

35.00% - 1,000,00 and above

Payroll Cycle

In Nigeria, the payroll frequency is monthly, bi-weekly or weekly. The payment for salaries is to be made at least once a month.

13th Salary

There are no statutory requirements for 13th-month salary payments. However, bonuses are common at the discretion of the employer.

VAT

The standard rate of VAT in Nigeria is 7.5%.

Compensation

The national minimum wage in Nigeria is currently 30,000 NGN per month.

Sick Leave

Employees are entitled to 12 days of paid sick leave per year following the presentation of a medical certificate after two days of absence. This is paid at full salary by the employer.

Vacation Leave

If an employee has been employed for 12 months, they are entitled to 6 days of paid annual leave. It is common to give 7 days from the first day of work. Unused leave can be carried over at the discretion of the employer.

Public Holidays

Public holidays that fall on the weekend are usually lost unless a day off in lieu has been mandated by the government.

Religious holidays are determined by the lunar cycle and will show as tentative until they are confirmed nearer the date of the holiday.

Date Day Holiday
1 Jan 2024 - Monday - New Year’s Day
1 Apr 2024 - Monday - Easter Monday
7 Apr 2024 - Sunday - Night of Decree
10 Apr 2024 - Wednesday - Festival of Breaking the Fast
24 Apr 2024 - Wednesday - Concord Day
1 May 2024 - Wednesday - Labor Day
17 Jun 2024 - Monday - Feast of the Sacrifice
18 Jun 2024 - Tuesday - Second Day of the Feast of the Sacrifice
8 Jul 2024 - Monday - Islamic New Year’s Day
3 Aug 2024 - Saturday - Nigerien Independence Day
15 Sep 2024 - Sunday - Birth of the Prophet
18 Dec 2024 - Wednesday - Nigerien Republic Day
25 Dec 2024 - Wednesday - Christmas Day

Employment/Termination/Severance

The termination process varies according to how the employment agreement and collective agreement are in place and is based on the type of contract and reason for termination. Employment can be terminated at any time by either the employer or the employee providing notice is given.

Notice Period

In Nigeria, the notice period of an employee is dependent on their seniority, as follows:

One day is required for three months of service or less

One week for three months to 2 years

Two weeks for 2 -5 years

One month for five or more years

Severance Pay

For manual and clerical workers (who are covered by the labor act), redundancy pay is mandatory. The law does not stipulate the amount to be paid as redundancy pay. The law only provides that the employer should use its best endeavors to negotiate redundancy payments. For employees not covered by the labor act, severance pay is usually subject to the provisions of the employment contract or collective agreement.

Probation Period

No probation period is required but it is common to use 3-6 months.

VISA

Nigeria’s immigration system provides several options for employers of foreign nationals. Nigeria is a member of the Economic Community of West African States (ECOWAS). Its immigration program provides ECOWAS-specific provisions. Requirements, processing times, employment eligibility, and benefits for accompanying family members vary by permit type.

Business visitors from non-ECOWAS member states may use the business visa for stays of up to 90 days. This visa can be extended in Nigeria for another 30 to 90 days at the authorities’ discretion.

ECOWAS nationals are visa-exempt and may enter Nigeria with a valid passport.

Non-ECOWAS nationals require an extension and to pay the corresponding fee for any stay beyond 56 cumulative days in 12 months.

The Temporary Work Permit is suitable for foreign nationals undertaking short-term technical assignments (e.g., after-sales installation, maintenance, repairs of machines, and equipment). It permits a single entry to Nigeria for work for up to 90 days.

The Combined Expatriate Residence Permit and Aliens Card (CERPAC) or the Temporary Work Permit (TWP) are suitable for foreign nationals undertaking work depending on their intended length of stay.

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