How do you hire a Nigerian employee in 2026?

1. Issue the offer letter

   Send a written offer the same day as verbal acceptance. Include role, salary, start date, probation of up to 6 months, notice of 1 day during the first three months, and any conditions such as work authorisation or references.

2. Complete the work-authorisation check

   Confirm the employee's right to work. For Nigerian citizens, verify their identity document and retain a copy. For foreign nationals, confirm that an Expatriate Quota position exists and that the employee holds or is obtaining their CERPAC before the start date.

3. Issue the written contract

   Issue the full employment contract before or on day one. The contract must cover pay, notice tied to tenure, leave, probation, and pension terms. Teamed's standard Nigerian contract meets all Labour Act requirements. Clients choose commercial terms; Teamed signs as the legal employer.

4. Complete pension and payroll registration

   Open or transfer the employee's Retirement Savings Account with a PenCom-licensed PFA, register for PAYE with the relevant State Internal Revenue Service, and collect the Tax Identification Number and bank details. Pension registration must be completed within 7 working days of the first salary payment.

5. Issue the first payslip and file returns

   Run the first payroll at the end of the first calendar month. Remit PAYE to the State IRS by the 10th of the following month. Transfer pension contributions to the PFA within 7 working days of salary payment. The employee receives their payslip and is on the payroll record.

Three traps to avoid in Nigerian offer letters:

• Quoting net salary. Tax rates changed under the Nigeria Tax Act 2025 from January 2026. Committing to a net figure in writing creates problems when PAYE or pension rates shift. Quote gross monthly salary only.
• Inconsistent probation terms. If the offer letter states one probation length and the written contract states another, the contract governs. Align them before the employee starts. The National Industrial Court (NICN) has held that extending probation beyond the contractually stated period is an unfair labour practice.
• Overstating discretionary benefits. Promising a bonus at a specific level in an offer letter without a clear "discretionary" qualifier can create a contractual entitlement if the employee relies on it.

Teamed's standard Nigerian offer letter template covers all required ground. Clients choose commercial elements; Teamed holds the legal-employer position.

Nigerian citizens

For Nigerian nationals, there is no formal right-to-work check of the kind that exists in the UK or Germany. The employer confirms the employee's identity and retains a copy of their means of identification (National ID card, international passport, or driver's licence) as part of the onboarding record.

Foreign nationals

Non-citizens must have their immigration status confirmed before starting work. The employer must hold an approved Expatriate Quota position for the role before a foreign national can be hired into it. The Expatriate Quota is applied for through the NIS; positions are granted by role type and number.

Foreign employees typically enter on a Subject to Regularisation (STR) visa and then convert to a Combined Expatriate Residence Permit and Aliens Card (CERPAC). The CERPAC is the combined work and residence permit. It must be in place before the employee starts substantive duties.

Ongoing permit management

CERPACs are issued for one to two years and must be renewed before expiry. Teamed tracks each renewal deadline and notifies clients and employees in advance. An expired permit is a compliance breach for both employer and employee.

What a Nigerian employment contract should include to satisfy the Labour Act and protect both parties:

• Names and addresses of both employer and employee
• Date employment begins
• Job title and a brief description of duties
• Place of work and any mobility or travel requirements
• Gross salary, pay components, and payment intervals (monthly is the norm)
• Normal working hours per day and per week
• Annual leave entitlement (the statutory minimum is 6 days per year after 12 months; market practice is significantly higher)
• Sick leave terms (the statutory minimum is 12 days at full pay per year)
• Maternity leave for female employees (12 weeks under the Labour Act, with at least 50% of wages for the private sector)
• Notice periods keyed to tenure: 1 day for the first 3 months, 1 week from 3 months to 2 years, 2 weeks from 2 to 5 years, 4 weeks from 5 years onwards
• Probation period and the notice to end employment during probation (1 day at the statutory minimum)
• Pension scheme details, including the employee's chosen Pension Fund Administrator (PFA)
• Disciplinary and grievance procedures
• Any collective agreement that applies to the role

Teamed's standard Nigerian contract covers all of the above and is reviewed against current legislation. Clients choose commercial elements such as salary, bonus, restrictive covenants, and extended notice provisions. Teamed signs as the legal employer.

Key source: Labour Act (Cap L1 LFN 2004), Section 11 via jurist.ng.

Real HR and legal experts handle your Nigerian hires, from the first offer letter through every monthly PAYE remittance and pension transfer. An actual person, not a chatbot or a pooled queue. There is no setup fee and no exit fee. Employer cost passes through at cost, itemised on every invoice.

EOR payroll, contractor onboarding, and entity setup all live on one platform. A Nigerian contractor who converts to salaried employment keeps their record. Run the Crossover Calculator to see the month your Nigerian hire is ready to graduate to your own entity. Start from the Nigeria hiring overview; each guide here takes one layer of Nigerian employment law.

Key sources: Labour Act (Cap L1 LFN 2004), National Pension Commission (PenCom), and Nigerian Immigration Service.