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.

Labor and Payroll Considerations in Nigeria:

  • The minimum wage is NGN 30,000 per month
  • Income tax is withheld from employee pay
  • Nigeria uses a Pay-As-You-Earn (PAYE) schedule
  • Social security is also withheld from employee pay
  • Employers must also pay social security contributions
  • New employees must be registered in the state they live in for tax purposes
  • Upon employee termination, a notification should be given to the tax authority (Federal Inland Revenue Service or Lagos State Internal Revenue Service)
  • Employers must obtain quota permits to hire foreigners, valid for 2-3 years. All foreigners who are not ECOWAS nationals need a visa before entering the country

Blue Marble has created cloud-based technology with customized reporting to manage payroll in 145+ countries. If you are just getting started, or would like to simplify operations in Nigeria, we can help. Our hybrid service model gives you a US-based service team and in-country experts to help when questions come up. Talk to us about making payroll in Nigeria compliant and easy to manage. Click here to learn more