Employment and labor laws vary from country to country. This guide is intended to provide the most up to date information available. We will update this guide as needed when changes are made to the laws.
Employment Contracts
Employers are legally required to provide formal written contracts for all employees that include salary/wage, termination terms, job title, etc. The contracts must be written in English and use the Nigerian Naira currency (NGN).
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.
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.
For the year 2024:
- Jan 1 – Monday: New Year’s Day
- Mar 29 – Friday: Good Friday
- Apr 1 – Monday: Easter Monday
- Apr 10 – Wednesday: Id el Fitr (Tentative)
- Apr 11 – Thursday: Id el Fitr holiday (Tentative)
- May 1 – Wednesday: Workers’ Day
- Jun 12 – Wednesday: Democracy Day
- Jun 17 – Monday: Id el Kabir (Tentative)
- Jun 18 – Tuesday: Id el Kabir additional holiday (Tentative)
- Sep 16 – Monday: Id el Maulud (Tentative)
- Oct 1 – Tuesday: National Day
- Dec 25 – Wednesday: Christmas Day
- Dec 26 – Thursday: Boxing Day
Annual Leave (vacation)
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.
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.
Maternity and Paternity
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.
Paternal Leave
There are no provisions in the law regarding parental leave.
Other Leave
There are no provisions in the law for additional statutory leave.
Employee Severance and Terminations
Termination Process
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 less service.
- 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.
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.
The national minimum wage in Nigeria is currently 30,000 NGN per month.
Contributions
Employer Payroll Contributions
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.
VAT
The standard rate of VAT in Nigeria is 7.50%.