As of March 2024, the estimated population of Nigeria is 223,804,632.
The currency in Nigeria is the Nigerian Naira (NGN). The currency symbol is ₦.
Nigerian labor law distinguishes between "workers" (those who perform manual and clerical work) and "employees" (or "non-workers") who perform executive, administrative, technical, or professional work. The law states that the Labour Act applies to workers, while employment relationships with employees are governed by the applicable employment contracts and common law. However, the Employees Compensation Act and the Labour Act are generally considered to cover any employed person who has a contract with an employer. It applies to employment relationships created under written or oral contracts, whether on an indefinite, fixed-term, part-time, temporary, apprenticeship or casual basis. It also applies to employees in informal sectors. Contracts that do not specify a fixed expiry date are considered indefinite-term contracts or permanent. Such contracts are terminated by giving a notice or in any other way in which a contract is legally terminable or held to be terminated. The Employee Compensation Act requires every employer to make a minimum monthly contribution of 1% of the total monthly payroll into the Employee Compensation Fund.
Employers must give employees a written statement no later than 3 months after beginning employment. The statement must specify employer and employee particulars, the nature of employment, leave, sick pay, holidays, notice period, and wage rate. If an employee is given a written employment contract, a written statement is not required. If any of the employment conditions change, the employer must notify the employee in writing within 1 month of the change. A non-compete clause can be included in the employment contract. It is enforceable only if it is reasonable in its scope (in terms of time restraint, geographical area) and does not infringe on the rights of employees or restrain freedom of trade. Employers can include such a clause to protect their professional secrets or business interests. Courts have the power to invalidate such clauses if they are found to be unreasonable and oppressive.
Nigeria's labor law does not differentiate between permanent and temporary employees. Casual or temporary employment relationships are recognized as employees under the Employees' Compensation Act and are entitled to earn the minimum wage. Employers must contribute 1% of the monthly wages of temporary employees to the Employees' Compensation Fund, and these employees are entitled to compensation in case of suffering workplace injuries, diseases, disabilities, or death during their employment. The Trade Unions Act of Nigeria recognizes temporary workers and allows them to form trade unions. Recruiters with appropriate licenses can hire workers for other employers. Employers who want to hire temporary workers through such recruiters must apply to the Minister of Labor in writing, with the following particulars: Number of workers required Place where work is to be performed Nature of work Wages to be paid Duration of proposed contract Whether or not it is desired to obtain the workers through a recruiter Letter of recommendation, if the work is to be performed outside Nigeria Upon receipt of an application, the Minister may grant the applicant employer a permit to engage, personally or through a recruiter, the number of workers required. The Minister may request additional information, such as workers' wages and travel expenses.
In Nigeria, there are no provisions or guidance on probationary periods. In the absence of guidance provided through the labor law, the standard best practice is for the probationary period to be included in employment contracts or letters of appointment. It generally ranges from 3 months to 6 months. The National Industrial Court of Nigeria (NICN) has rules that probationary periods can be used to assess whether the employee is a good fit for the role. It must be mentioned in a written contract. Either party can terminate the contract during this period. According to a February 2026 decision of the Industrial Court of Nigeria, employers may terminate an employee's employment during a probationary period for valid, documented reasons related to the employee’s conduct, capacity, or the employer’s operational needs. Even if the individual contract provides for the extension of the probationary period, the NICN has maintained that it is an unfair labor practice to retain the right to perpetually extend the probationary period.
In Nigeria, the Labour Act does not indicate a standard number of weekly working hours. The mutual contract between an employer and employee determines an employee's working hours. Minors under 16 years of age cannot be required to work for a period longer than 4 consecutive hours. Additionally, minors are prohibited from working more than 8 hours a day. Employees must generally be given a break of at least 1 hour when they work more than 6 hours a day. During such breaks, the employee cannot be required to stay at the place of work. Employers are also mandated to provide a weekly rest day, which shall not be less than 24 consecutive hours.
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An employee who has worked for a continuous period of 12 months is entitled to a paid leave of at least 6 working days. Employees under 16 years of age are entitled to 12 days of annual leave. Annual leave is paid as the employee's basic pay, excluding all allowances and overtime pay. Annual leave must be taken by the end of the year in which it is earned, but it can be deferred by mutual agreement for a maximum of 24 months. Both earned and deferred leave has to be taken within these 24 months. If an employee's contract is terminated before they complete 12 months of employment, the employee will receive leave compensation in proportion to the time worked provided they worked for at least 6 months.
An employee is entitled to 12 days of paid sick leave per year, provided that the temporary illness is certified by a registered medical practitioner. Benefits for sick leave are paid as the employee's basic pay, excluding all allowances and overtime pay.
A female employee is entitled to 6 weeks of maternity leave before and 6 weeks after the expected date of childbirth, provided that the employee has obtained a medical certificate from a registered medical practitioner. This leave is applicable for both legitimate and illegitimate children. Maternity leave is paid at a rate of at least 50% of the wages the employee would have earned had they not been absent, provided that the employee had been working for the same employer for a period of 6 months before the leave. The employer is not liable to pay for any medical expenses incurred by a female employee during pregnancy or childbirth. Employers are prohibited from terminating a female employee during an absence after maternity leave if this absence is due to inability to resume work related to conditions arising from delivery. Extended maternity leave is unpaid.
The Labour Act of Nigeria offers no provisions regarding paternity leave for private employees. However, married male public servants are given 14 working days of paid paternity leave. Paternity leave is also available in case of adoption of a baby less than 4 months old. This leave is granted not more than once in 2 years, and for a maximum of 4 children.
The notice period is calculated based on the length of employment: 1 day, where the employment has lasted 3 months or less 1 week, where the employment has lasted for more than 3 months but less than 2 years 2 weeks, where the employment has lasted between 2 years and less than 5 years 1 month, where the employment has lasted for 5 years or more Notice period excludes the day on which the notice was given. Any notice period of 1 week or more has to be in writing. The notice period requirement can be waived by either party by paying the employee's wages (excluding overtime and other allowances) in lieu of notice. All wages must be paid on or before the expiry of any period of notice.
Severance payments are not mandatory under the law but may be specified in employment contracts or collective bargaining agreements. In addition, the Labour Act gives the Minister of Labour the authority to enact regulations on severance pay for employees made redundant.
There is an established Contributory Pension Scheme where employers and employees are mandated to contribute monthly to maintain a Retirements Savings Account (RSA) in employees' names with any Pension Fund Administrator of choice. This scheme's savings are accessible at retirement at the age of 50 or after 6 months of retirement if retirement occurs before 50 years of age in accordance with the terms and conditions of their employment contract. If a person retires before reaching the age of 50 years due to mental or physical incapacity, they can have immediate access to their RSA. The amount of pension issued after retirement depends on the balance in the employee's RSA account. The minimum pension guarantee shall be determined from time to time by the National Pension Commission. Contributions to the pension fund are tax-deductible, and the pension payments are exempt from tax.
In case of an employee's death, the employer must pay the benefits of the life insurance policy (a minimum of three times the Annual Total Emolument (ATE) of the employees) to the dependents named by the employee. Usually, the employee's widow/widower and children are considered as dependents, but, in certain circumstances, the employee can choose to name other dependents. Dependent children can receive this benefit until the age of 21 years or until they complete undergraduate studies, whichever is earlier. In the event of an employee's death due to an occupational injury, dependents are also entitled to compensation at the rate of 30% to 90% of the deceased's last monthly salary. This benefit is paid from contributions made by employers.
The Contributory Pension Scheme mandates employees and employers to make monthly contributions to employees' Retirement Savings Account (RSA). In the event of early retirement from work (before the age of 50 years) due to permanent disability, an employee can withdraw up to 25% of the amount in their RSA and start a monthly or quarterly pension with the remaining amount in the account, or a programmed withdrawal plan of their choice. Employers are also required to have an Employees' Compensation Fund, maintained by the Nigeria Social Insurance Trust Fund, for the following purposes: Payment of adequate compensation to all employees or their dependents in case of injury, disease, or disability arising out of or in the course of employment The provision of rehabilitation to employees with work-related disabilities Payment of benefits for work-related disability depends on the type and degree of disability.
Effective January 1, 2026, the Nigeria Tax Act introduces a progressive personal income tax structure, with rates ranging from 0% on taxable income up to NGN 800,000 (Nigerian nairas) to a top marginal rate of 25% on taxable income exceeding NGN 50,000,000. Residents are taxed on their worldwide income, including income from Nigerian sources. However, non-residents are liable to pay tax only on their income from sources related to business, trade, or profession in Nigeria. The tax assessment year runs from January 1 through December 31.
There are 75 visa classes, broadly categorized into 3 groups as follows:
Visa on Arrival ended on May 1, 2025, and is replaced by a mandatory e-Visa system.
Foreign nationals who come to Nigeria for employment need to apply for a Temporary Residence Visa. R2A - Employment Visa (Expatriate) is a type of visa issued to persons who wish to take up employment in Nigeria, based on expatriate quota. The following documents must be submitted: Passport valid for at least least 6 months with at least 2 blank visa pages for endorsement Formal application for R2A Visa from the Employer/Institution accepting Immigration Responsibility Expatriate quota approval Letters of offer of appointment and acceptance of offer Educational qualifications and Curriculum Vitae STR allows stay for up to 90 days, then the employees must apply for the Comprehensive Expatriate Residence Permit and Automated Cards (CERPAC). It is mandatory to obtain an e-CERPAC digitally. It can be processed and issued before entry. Dependents (spouses, children, or wards) must also obtain e-CERPAC to legally reside in Nigeria. The e-CERPAC is valid for 1 year. The fee for e-CERPAC is USD 2,000 (American dollars) per year. An e-CERPAC can be transferred to another employer, but a transfer application must be submitted with relevant documents, including the new employer’s expatriate quota approval. Foreign employees without a valid e-CERPAC face fines, legal action, or deportation as stipulated under Nigerian immigration laws. Employers hiring such foreigners may also face penalties.
