Employer of record in Nigeria

You don’t need a Nigerian company to employ people in Nigeria. We engage a vetted local partner as the locally registered legal employer in Nigeria and manage the employment for you, with SLONEC Advisory Group as your single contracting party in the UK, covering state PAYE, pension and other statutory contributions and expatriate quota and residence permits for foreign staff.

Delivered by SLONEC Recruitment and Training (Sierra Leone).

Services we coordinate in Nigeria

Employer of record in Lagos, Abuja and other states.
Set-up coordination for your own company (Corporate Affairs Commission incorporation, tax registration, and investment registration for foreign-owned companies) through local professionals.
Compliance and aftercare: payroll, filings with the right state and federal bodies, and reporting to head office.
Market entry support, including structure choice and a regulatory and tax overview.

Payroll in Nigeria

Income tax (PAYE) is paid to the internal revenue service of the state where the employee lives, not to one national body. The Nigeria Tax Act 2025, signed on 26 June 2025 and in force from 1 January 2026, sets annual bands from 0% on the first ₦800,000 of taxable income, rising through 15%, 18%, 21% and 23% to 25% above ₦50 million.
Pension: under the Pension Reform Act 2014, at least 10% of monthly emoluments from the employer and 8% from the employee, paid to the employee’s chosen pension fund administrator.
National Housing Fund: 2.5% of basic salary. It is compulsory in the public sector and voluntary for private-sector employees.
Employees’ Compensation: 1% of payroll from the employer to the NSITF under the Employees’ Compensation Act 2010.
Industrial Training Fund: 1% of payroll from employers with five or more staff or turnover above the statutory threshold.
Employment terms follow the Labour Act and the contract; the Labour Act’s protections apply mainly to manual and clerical workers, so contracts carry most of the detail for other staff.

Foreign staff: permits

Companies employing foreign nationals need an expatriate quota position from the Federal Ministry of Interior. The employee then enters on an employment (expatriate) visa and obtains a CERPAC residence permit through the Nigeria Immigration Service.

Who hires in Nigeria

Nigeria is the most common African country of birth among residents of England and Wales (270,768 at the 2021 Census) and received about US$22.1 billion in personal remittances in 2024 (World Bank, as at November 2026).

UK tax angle (general information, not advice)

The UK and Nigeria have a double taxation agreement signed on 9 June 1987 and in force from 27 December 1987. Tax treaties do not cover National Insurance. The UK has no social security agreement with Nigeria. If a UK employer sends one of its own employees to work there, UK Class 1 National Insurance may continue for the first 52 weeks if the conditions are met, and Nigerian pension contributions may also be due. If the person is employed locally through the employer of record instead, UK Class 1 National Insurance does not normally continue, although they may be able to pay voluntary Class 3 contributions if they meet the conditions. UK income tax depends on residence under the Statutory Residence Test. Using an employer of record does not by itself prevent a permanent establishment. Under this agreement, a building site or construction or assembly project, or supervisory activities connected with it, lasting more than three months can be a permanent establishment, and the agent rules are wider than in many treaties. Ask us for a proposal and we will look at your facts.

Pricing. Our employer of record service in Nigeria is US$199 to US$399 per employee per month (excluding UK VAT or any local sales tax, where either applies), plus the employment costs, which are charged at cost. We confirm the fee for your team in a written proposal.

Invoicing and VAT. Employment costs (salary, employer social security, pension contributions and other agreed employment costs) are charged at cost. VAT, where it applies, is charged on the total of the employment costs and our service fee. Our fees for this service are set out in US dollars in your proposal and invoiced in US dollars, exclusive of VAT. Where UK VAT applies, the VAT amount is also shown in pounds sterling on our invoice, as UK VAT rules require. SLONEC Advisory Group has applied for VAT registration. Where VAT applies, it will be charged at the applicable rate on fees for work carried out on or after our VAT registration date, and our VAT number will be shown on our invoices.

Frequently asked questions

Can I employ people in Nigeria without a company there?

Yes. Through vetted local partners, we manage the employment, with SLONEC Advisory Group as your single contracting party.

Who collects income tax from employees?

The internal revenue service of the state where the employee lives.

What pension contributions apply?

At least 10% from the employer and 8% from the employee, paid to a pension fund administrator.

What do expatriates need?

An expatriate quota position for the employer, then an employment (expatriate) visa and a CERPAC residence permit.

Is there a UK tax treaty with Nigeria?

Yes, in force since 27 December 1987. It does not cover National Insurance.

Can you also help Nigerians in the UK invest back home?

Yes. See our Invest back home page.

How much does it cost?

Our service fee is US$199 to US$399 per employee per month. Salary, employer contributions and other agreed employment costs are charged at cost on top. UK VAT or any local sales tax is payable on top where either applies, and we confirm everything in a written proposal.

Request a proposal

Tell us the roles, the state and the start date you are aiming for.