Hiring in Nigeria

The terms set out role, salary in NGN, working time, leave, notice and any restrictive covenants. The EOR is the counterparty to the employee, which is what removes the need for your own entity.

English is the standard contract language.

Fixed-term contracts are permitted, but repeated renewals for ongoing work invite scrutiny as casualisation and most EORs default to indefinite terms.

Set probation from day one. An extension needs the employee's agreement and a documented reason.

Some EORs shorten probation as policy because they, not you, carry the dismissal risk. Ask before you agree a start date.

Where overtime is paid, the rate and any cap come from the contract or a collective agreement.

Most professional hires fall outside the Labour Act's definition of a worker, so working time is a contractual matter rather than a statutory one. Put the position in writing either way.

Market practice for professional roles is 15 to 20 working days, well above the statutory floor, so quote the market figure when you budget.

Paid sick leave runs to 12 working days a year with a medical certificate. Maternity leave is 12 weeks at no less than half pay after six months' service, and the employer funds all of it, so confirm what the EOR's policy pays.

Either side may terminate on notice or pay in lieu. Redundancy pay is negotiated rather than fixed by statute, and the union or workers' representatives must be told the reasons and scale in advance.

The EOR runs the process as the legal employer and will want the paperwork in order, including final pay, unused leave and any contractual severance. Wrongful dismissal claims go to the National Industrial Court, which increasingly expects a valid reason, so keep a documented one.

Group life cover worth at least three times annual emoluments is mandatory. Private medical cover through an HMO is standard for professional roles, and health insurance is now compulsory by law, though enforcement is uneven.

EORs often bundle benefits through a group scheme. Ask what is included in the fee and what is billed on top.

Employer contributions add roughly 12% on top of salary for local hires: 10% pension plus 1% each for employees' compensation and the training fund. That is before group life cover and the EOR fee.

Currency is the trap. Salaries are contracted and paid in naira, which lost most of its dollar value after the 2023 currency reforms. Agree up front how pay will be reviewed if the rate moves, so the offer holds its value.

Ask whether the EOR holds its own quota or refers to a partner. A partner-model EOR often cannot sponsor at all, and quota approvals and Nigerian understudy requirements apply to the sponsor, not to you.

Set start dates after approval, not before.

Get the data processing terms in the service agreement, not just the privacy notice. Cross-border transfers need a lawful basis.

Ask where payroll data is hosted and who in the partner chain can see it.

Incorporation is manageable, but the running cost is the point: foreign-owned companies need a business permit, cannot use the small-company audit exemption, and must register with several tax and statutory agencies. That sets an annual floor.

Permanent establishment risk is about what people do, not where payroll sits. Revenue-generating activity can create exposure regardless of the employment route.