NIGERIA
Payroll Outsourcing
Pay Your Talents in Nigeria Compliantly
How Can We Help You?
Pay Your Team in Nigeria. On Time. Everytime.
Ensure your team in Nigeria is paid accurately and on time with our Payroll Outsourcing services. Gain expert support to keep your operations fully compliant with Nigeria's Labour Code and tax regulations.
- Pay anyone in Nigeria - no matter the currency.
- Manage employee benefits easily. Get the support you need to navigate employee contributions in Nigeria.
Flexible Payroll Solutions in Nigeria.
Payroll solutions that adapt to your needs whether you are established or growing in Nigeria.
Nigeria Payroll expertise at your fingertips
Over more than a decade, Africa HR Solutions has become a leading payroll service provider in Nigeria and across Africa with a proven track record of success with over 400 clients across many industries.
A single point of contact
Avoid unnecessary headaches and mistakes – manage everything from a single point of contact. Your dedicated account manager is always available to assist with any queries you may have.
Self service portal for your talents in Nigeria
Give your team the tools they need to easily manage their payslips, leave allowances, and other claims. Powered by SAGE, the employee self-service portal will make their lives easier.
100% Compliant payroll operations
Ensuring your operations are carried out compliantly is a must. From country-specific employee contribution to tax policies, we make sure your company is up to code with Nigeria legislation at all times.
Nigeria Country Overview
Geographic location: Located in western Africa, Nigeria is a country neighboring Benin, Cameroon, and Chad.
Population: With more than 211 million inhabitants, Nigeria is Africa’s most populated country. Nigeria’s official language is English, but it is significantly less spoken in rural areas. Other languages include Hausa, Yoruba, Igbo and more.
Economy: Nigeria has enjoyed economic growth due to its oil resources. However, the past few years has seen a decrease in oil production, which is likely to cause a deceleration in the country’s economic growth. However, the country can still count on its other major sectors such as services (53% of the GDP), tourism, and manufacturing to maintain a positive economic outlook.
Payroll in Nigeria - What You Should Know
- Population: 211,400,704
- Gross Domestic Product (GDP): $440.78 B
- GDP Growth (April 2025): 3.6%
- Inflation, consumer prices: 17%
- Foreign Direct Investment (% of GDP): 0.6%
- Unemployment Rate: 9.8%
- Capital: Abuja
- Currency: Nigerian Naira
- Languages: English, Hausa, Yoruba, Igbo
Employer Contribution
- 10.00% of the employee’s emoluments must be contributed to social security for pension.
- 1.00% must be contributed to the Employee Compensation Scheme
- 1.00% must be contributed to the Industrial Training Fund
Employee Contribution
- 8.00% of the employee’s emoluments must be contributed to social security for pension.
- 2.5% must be contributed to the National Housing Fund
- 1.00% must be contributed to the Industrial Training Fund
Value-added tax (VAT)
The standard VAT rate is 7.5% in Nigeria. Only a select few items are subject to a 0% VAT rating which means any VAT levied may be re-credited to the taxpayer.
Paid Time-Off
Employees are generally entitled to at least 6 days of paid annual leave at 100% wage. For workers under the age of 16, the amount of annual leave can increase to 12 days.
Sick Leave
In Nigeria, workers are generally entitled to 12 days of paid sick leave.
Maternity Leave
In Nigeria, women are entitled to a maximum of 12 weeks paid at 50% of their regular wage.
Paternity Leave
In the Lagos and Enugu States, men are entitled to 2 weeks and 3 weeks of paid paternity leave respectively.
In Nigeria, a contract of employment can be terminated at any time by either party – with or without reason by providing a notice period.
A contract of employment can also be terminated when it reaches its expiry date.
The required notice period varies depending on the employee’s seniority.
- one day for a period of three months or less
- one week for more than three months but less than two years of service
- two weeks for two to five years of service
- one month for five or more years
There is no statutory severance pay in Nigeria.
- New Year’s Day (1st January)
- Good Friday (10th April)
- Easter Monday (13th April)
- Labor Day (1st May)
- Eid al Fitr
- Democracy Day (12th June)
- Eid al Adha
- Nigerian Independence Day (1st October)
- Prophet’s Birthday
- Christmas Day (25th December)
- Boxing Day (26th December)
While the content presented on this webpage is accurate as of the time of publication, it is imperative to recognise that the content is provided solely for informational purposes and does not constitute legal and/or tax advice. To obtain the most current and precise guidance, it is essential to verify specific details related to employment or compliance with our experts or consult your own legal and/or tax advisor(s). Africa HR Solutions Ltd. explicitly does not offer legal or tax advice. The information provided is general in nature, not tailored to a specific company or workforce, and does not reflect the service delivery of Africa HR Solutions in any given jurisdiction. Africa HR Solutions makes no representations or warranties regarding the accuracy, completeness, or timeliness of this information and disclaims any liability arising out of or in connection with it, including any loss resulting from the use of or reliance on the information.
Seeking a Reliable Payroll Partner in Nigeria?
Pay your talents are paid on time and without error! Our team at Africa HR Solutions also provides your company the guidance you need to ensure that your operations comply with Nigeria’s labour Code and tax policies. Over the years, we have played a pivotal role in the expansion of over 400 clients across Africa by providing reliable HR and payroll and cross-border payment outsourcing solutions.
Trusted by Inspiring Changemakers.
Simplify and manage your team's payroll in Nigeria
From Lagos to Abuja, payroll in Nigeria is simplified with compliant PAYE, pension filings, and reliable disbursements.
Frequently Asked Questions
What is payroll outsourcing?
Payroll outsourcing is when a specialist partner manages salary calculations, tax deductions, and statutory filings on your behalf. This ensures employees are paid correctly and on time while keeping your business compliant with local laws.
How does tax outsourcing work?
Tax outsourcing covers the preparation, filing, and payment of employee and employer-related taxes. It reduces the risk of errors, missed deadlines, or penalties by ensuring all contributions are handled according to local regulations.
Why should I outsource payroll and tax in Africa?
Africa’s employment laws and tax frameworks differ from country to country. Outsourcing ensures compliance, saves administrative time, and avoids costly mistakes while giving you access to local expertise in multiple jurisdictions.
Can you manage payroll for both local and expatriate employees?
Yes. We manage payroll for both local hires and expatriates, including handling multi-currency payments, cross-border compliance, and special tax considerations.
How do you ensure compliance with local laws?
Our experts stay updated with labour codes, tax rates, and social contribution requirements in each country. We file directly with authorities, ensuring your business remains compliant at all times.
