Africa Deployments provides Employer of Record (EOR) services in Nigeria, allowing international companies to hire Nigerian employees without registering a local entity with the Corporate Affairs Commission (CAC). As EOR in Nigeria, Africa Deployments becomes the legal employer under the Labour Act and handles PAYE withholding to the Federal Inland Revenue Service (FIRS), NSITF contributions, ITF levy, and NHF deductions, giving your business a fully compliant Nigerian employment structure from the outset.
Quick facts: EOR Nigeria at a glance
- PAYE: Progressive 7% to 24% on annual taxable income; administered by state Internal Revenue Services
- NSITF (National Social Insurance Trust Fund): 1% of gross salary (employer-only)
- ITF (Industrial Training Fund) Levy: 1% of annual payroll for employers with 25+ employees or NGN 50M+ turnover
- NHF (National Housing Fund): 2.5% of monthly salary (employee-only)
- Pension: 10% employer + 8% employee of monthly gross emoluments (Contributory Pension Scheme)
- Minimum wage: NGN 70,000/month from July 2024 (Federal minimum)
What Is an Employer of Record in Nigeria?
An Employer of Record in Nigeria is a locally registered entity that formally employs workers on behalf of a foreign company, managing all statutory employer obligations under Nigerian labour law. Africa Deployments’ EOR Nigeria service covers Labour Act-compliant contract drafting, PAYE state-level registration and remittance, Contributory Pension Scheme (CPS) administration, NSITF and ITF levy management, and NHF deduction and remittance to the Federal Mortgage Bank of Nigeria.
Nigeria Employment Law at a Glance
| Requirement | Detail |
|---|---|
| Governing law | Labour Act Cap L1 LFN 2004; Pension Reform Act 2014 |
| Federal minimum wage | NGN 70,000/month from July 2024 |
| PAYE | Progressive 7% to 24%; filed with State Internal Revenue Service |
| Contributory Pension | 10% employer + 8% employee of gross monthly emoluments |
| NSITF | 1% of gross salary (employer-only) |
| NHF | 2.5% of monthly salary (employee-only) |
| Annual leave | 6 working days per year (Labour Act minimum; contracts typically offer more) |
Payroll, Tax and FIRS Compliance in Nigeria
Nigeria’s PAYE system is administered at state level – Lagos State Internal Revenue Service (LIRS) covers Lagos employees, while the Federal Inland Revenue Service (FIRS) covers Federal Capital Territory employees and handles corporate tax and VAT. PAYE rates are progressive from 7% on annual taxable income below NGN 300,000 to 24% on income above NGN 3,200,000, with a minimum PAYE obligation of 1% of gross income even where tax computations produce nil liability. Contributory Pension deductions under the Pension Reform Act 2014 must be remitted to a Pension Fund Administrator (PFA) within 7 days of salary payment. NSITF contributions at 1% of gross salary are remitted monthly to the NSITF. ITF levy of 1% of annual payroll applies to employers with 25 or more employees or annual turnover of NGN 50 million or more.
Why Companies Choose Africa Deployments for EOR in Nigeria
- Labour Act-compliant contracts covering all state jurisdictions
- State-level PAYE registration and monthly remittance to the appropriate State IRS
- Contributory Pension Scheme setup and monthly PFA remittance
- NSITF, ITF, and NHF deduction and payment management
- Nigeria EOR as part of Africa Deployments’ continental multi-country hiring platform
Frequently Asked Questions
What is the minimum wage in Nigeria in 2026?
Nigeria’s Federal minimum wage was increased to NGN 70,000 per month from July 2024. State-level minimum wages may apply where they exceed the Federal rate.
How does Nigeria’s Contributory Pension Scheme work?
Under the Pension Reform Act 2014, employers contribute 10% and employees contribute 8% of monthly gross emoluments. Contributions must be remitted to a licensed Pension Fund Administrator (PFA) within 7 days of salary payment each month.
Is PAYE in Nigeria federal or state?
PAYE is administered at state level by each State Internal Revenue Service. Lagos employees are covered by LIRS, Abuja employees by FIRS, and employees in other states by their respective State IRS. An EOR with presence across Nigerian states – like Africa Deployments – ensures correct state-level filings.
What is the NSITF in Nigeria?
The National Social Insurance Trust Fund (NSITF) provides workplace injury and compensation coverage. Employers contribute 1% of gross monthly salary per employee, remitted to the NSITF monthly.
About Africa Deployments
Registered Company Name: Africa Deployments Ltd.
Address: The Strand, Beau Plan Business Park, Mauritius
BRN: C19167158 | VAT: 27738392
Phone: +230 5713 8629
Website: africa-deployments.com
Nigeria’s multi-layered payroll environment – spanning state-level PAYE, Contributory Pension, NSITF, NHF, and ITF – makes compliance a significant operational challenge for international employers. Africa Deployments’ EOR Nigeria service provides the registered employer infrastructure and statutory management expertise needed to hire compliantly across Nigeria’s 36 states without entity establishment.
Reviewed by: Africa Deployments Compliance Team
