Employing in Nigeria
Nigeria’s economic potential is considerable. Home to Africa’s largest economy and biggest oil producer, the country has a growing populace of over 180 million — the largest in Africa — and an abundance of natural resources.
Although there are several ethnic tribes and dialects (Hausa, Yoruba and Igbo being three of the major groups), English is still the generally spoken language. Nigeria also has surprisingly similar business and legal practices to the UK, making it an excellent choice for UK companies looking to expand into African markets.
Over the years, the deep-rooted ties between Nigeria and the UK have developed into a more dynamic relationship that includes trade, education and culture. Today, Nigeria and the UK have an excellent commercial relationship. UK companies are extremely well-known in Nigeria, and UK brands (especially luxury goods) are in high demand. Thanks to one of the lowest income tax rates in the world (between 7% and 24%), there’s also a growing consumer base of Nigerians with a lot more disposable income — ideal for UK businesses to tap into.
As specified under the National Minimum Wage Act, normal full-time working hours are 40 per week. However, the Labour Act does not specify general working hours, rather these are fixed by the mutual agreement or collective bargaining within the enterprise or industry.
This can range from zero to six months. There’s no right to extend this beyond the six months.
- One day, if the length of service is up to three months
- One week, if the length of service is up to two years
- Two weeks, if the length of service is up to five years
- One month, if the length of service is five years or more
If the worker has to work more than the fixed normal working hours, it’s considered as an overtime. There’s no statutory provision on the overtime work limit and overtime pay. Overtime compensation is entirely a matter of mutual agreement (employment contract), collective bargaining agreement or an order by the industrial wages board.
Workers can be engaged on certain tasks during the weekly rest periods and public holidays. In extraordinary circumstances, workers may perform work on weekly rest days and public holidays. In such cases, the worker is entitled to days off in lieu within 14 days of work done or a monetary compensation according to overtime rates (specified under employment contract, collective agreement or an order by industrial wages board) is paid.
Workers may be required to work on weekly rest days and public holidays. In such circumstances when an employee has to work on official holidays or weekly rest days, the employee is entitled to the payment of work done in addition to their normal pay according to the pay rate that applies to overtime work.
Holiday & Leave
Keen to engage an EOR in Nigeria? At TopSource Worldwide, we work with local experts to help you navigate the various admin and cost obstacles you may come across along your expansion journey
To find out how we can help your business with our employment solutions, contact us today.
Start your global expansion journey today.
Expand faster and stay compliant in over 150 countries without a legal entity
Deploy quickly (in days not weeks)
A single global portal for all your hiring needs
No legal entity required
Experienced expert team
Contact us today & talk to an international payroll or EOR consultant