Nigeria has a population of more than 205 million people, with petroleum, tourism, and agriculture key components of the economy. The standard corporate tax rate is 30%, but small businesses and certain industries pay varying rates.

Payroll and Labor Considerations:

  • The minimum wage is NGN 30,000 per month. The following are exempt from the obligation of paying minimum wage:
    • An establishment with fewer than 25 workers
    • An establishment that employs workers on a part-time basis
    • An establishment at which wages are paid through commissions
    • Workers in seasonal employment (agriculture) and seamen or crew members of an aircraft
  • All employees are to be paid overtime for any hours worked above what is agreed upon in their employment contract. The contracts also determine overtime pay rates
  • Severance benefits are not mandatory but may be addressed in the contract
  • Income tax is progressive and ranges from 7-24%. If income is less than NGN 30,000 per year, the income tax is 1% of gross income

HR and Statutory Requirements

  • Employees who have worked for 12 months with the same employer are entitled to at least 6 days of annual leave. Employees under 16 receive 12 days of leave
  • Employees are entitled to 12 days of paid sick leave per year, but the illness must be certified by a medical practitioner
  • Female employees receive 12 weeks of maternity leave, 6 weeks before delivery and 6 weeks after. Maternity leave is paid at 50% of the employee wages
  • There are no provisions for paternity leave
  • There is an established Contributory Pension Scheme where employers and employees are mandated to contribute monthly to maintain a Retirement Savings Account
  • Employees can begin receiving benefits at the age of 50 or after 6 months of retirement if they retire before the age of 50

Holidays in Nigeria

  • January 1 – New Year’s Day
  • April 15 – Good Friday
  • April 18 – Easter Monday
  • May 1 – Workers’ Day
  • May 3 – Id el Fitr
  • May 4 – Id el Fitr Holiday
  • June 12 – Democracy Day
  • July 10 – Id el Kabir
  • July 11 – Id el Kabir additional holiday
  • October 1 – National Day
  • October 8 – Id el Maulud
  • December 25 – Christmas Day

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