Nigeria

Employment taxes

When you work in Nigeria, here’s what you contribute as an employee:

• Personal income tax: progressive, from 7% to 24%
• Pension contribution: 8%
• National housing fund (NHF): 2.5%
• NHIS Health Coverage: basic health insurance framework, usually supported by employers
• Taxes are paid to the state where you live and work

Leave policy

• Annual leave: At least 12 days per year after 12 months of service.
• Public holidays: Nigeria celebrates 11 national public holidays.
• Sick leave: Usually 12 days per year, fully paid by the employer.
• Maternity leave: 12 weeks, typically at 50% pay covered by the employer (many private companies offer full pay)
• Paternity leave: Not mandatory nationwide, but some states, like Lagos offer 7–10 days. Many employers choose to offer paternity leave voluntarily.
• Parental leave: Not legally required, but policies vary by employer.

Employment termination

Termination in Nigeria must follow:

• Notice period is usually 30 days, but may increase based on years of service.
• Clear, fair reasons (performance, redundancy, breach of contract)
• Severance is not mandatory unless stated in the contract or company policy.

Hiring and contracts

• Written contracts are mandatory in Nigeria.
• Contracts must include: Job title, salary and benefits, work hours, leave entitlements, termination rules.
• Probation periods are common, usually 3–6 months.

Payroll and salary payments

• Salary is usually paid monthly.
• National minimum wage: ₦30,000 per month (approx. €24 / $25), though private and global companies pay significantly more.
• Employers must deduct pension, NHF, and income tax at source.

Benefits

Mandatory

• Pension (8% employee / 10% employer)
• Health insurance under NHIS
• Sick leave and maternity leave
• Annual leave

Optional

• Private health insurance
• Transport and meal allowance
• Bonuses
• Housing allowance
• Paid parental leave (enhanced packages in tech companies)

Monthly living cost (Abuja or Lagos)

Actual costs depend heavily on neighbourhood and lifestyle.

• Rent (1-bedroom): €350–€900 / $380–$1,000
• Utilities: €60–€120 / $65–$130
• Internet: €25–€50 / $27–$55
• Groceries: €150–€300 / $160–$320
• Transport: €35–€80 / $37–$85
• Eating out occasionally: €100–€200 / $110–$215

How to get a local ID number (NIN)

You’ll need a National Identification Number (NIN). The steps include:

1. Visit an official NIMC enrollment center.
2. Bring your passport and proof of residence.
3. Fill the form + biometric capture.
4. Receive your NIN slip (temporary) → physical card comes later.

Remote workers can also register through accredited NIMC diaspora centers.

Social security registration

Nigeria doesn’t have a single unified social security system. Instead, employees enroll in:

• Pension Scheme (via a Pension Fund Administrator)
• NHIS for basic health coverage
• NSITF for workplace injury insurance

Employers typically handle all registrations for new hires.

Banking

• Opening a bank account requires your passport, NIN, passport-sized photos, and proof of address.
• Popular banks in Nigeria: GTBank, Zenith Bank. Access Bank. First Bank of Nigeria, UBA, Stanbic IBTC.
• Most banks offer solid mobile apps and quick transfers.

Housing and rental process

• Rent is usually paid 12 months in advance.
• A local realtor or agent is the norm.
• You’ll sign a tenancy agreement covering rent, duration, and responsibilities.

Tenant rights include:

• Protection from unlawful eviction
• Right to notice periods
• Right to fair rent terms
• Landlord must handle major structural repairs

Healthcare system

Nigeria has a mix of public and private healthcare.

• Public hospitals are affordable but crowded.
• Most expatriates and professionals use private hospitals.
• Employers often provide private health insurance for better access and coverage.

Driving and public transport

• You can use your foreign license for a limited time before switching to a Nigerian one.
• Public transport options include: BRT buses (Lagos), taxis, and ride-hailing apps: Bolt, Uber, inDrive
• Driving can be chaotic, so many expats rely on drivers or ride-hailing.

Emergency and important contacts

General emergency number: 112

Work permit and visa requirements

All foreign nationals need a visa and a work permit to work and live in Nigeria. This process requires two stages:

1. STR Visa (Subject to Regularization) - This is the visa you get before traveling to Nigeria.
   Your employer must initiate the process with an employer’s invitation letter and expatriate quota approval (permission for the company to hire a foreign worker). You will also need the employment contract, your passport, and completed application forms.
2. CERPAC (Residence + Work permit) - After you enter Nigeria on an STR Visa, you must apply for CERPAC (Combined Expatriate Residence Permit and Aliens Card). This is the actual work permit, and it allows you to live and work in Nigeria legally. It’s valid for 1 year and renewable. Employers usually manage the entire CERPAC process on your behalf.