An economic powerhouse in the heart of Africa
Nigeria is the largest economy in Africa and is a true economic powerhouse. With a population of over 200 million and the highest GDP in Africa, the country boasts a wealth of opportunities for global businesses looking to enter a dynamic new market.
Nigeria also has the largest young population in Africa, with over 50% of the population falling into the age bracket of 15-54 years. Nigeria’s economy is made-up of a flourishing start-up space, and holds the highest number of start-ups in Africa at over 750. Three of Nigeria’s companies in the fintech sector (Flutterwave, Opay, and Andela) have achieved classification as ‘unicorns’, with respective values of over $1bn.
The industries that make up the bulk of the Nigerian economy include petroleum, tourism, agriculture, and mining.
Working in Nigeria
Employment Information
- The currency of Nigeria is the Nigerian Naira (₦)
- There is a mandated minimum wage of ₦30,000 (which equates to approximately $73) per month
- Workers in Nigeria are entitled to 11 paid holidays, including New Year’s Day, Good Friday, Easter Monday, Worker’s Day, Democracy Day, Nigerian National Day, Christmas Day, Boxing Day and Eid
- Hours and overtime rates vary in Nigeria, dependant on the employment contracts and agreements in place
- In line with the Nigerian Labor law, at least 6 paid days are granted to employees after 1 year of service. Maternity leave is generally agreed on in employment contracts, with 3 months of paid leave being common. Paternity leave is also occasionally provided
- Notice periods depend on the employment contracts, but they generally range from 1 week to 1 month on average
- Statutory payroll deductions include:
- Pension Contribution
- Group Life Insurance
- National Social Insurance Trust Fund (NSITF) National
- Housing Fund (NHF)
- Industrial Training Funds (ITF)
- PAYE
- Health insurance for employees is common practice, but is not mandatory
- Foreign employees who fail to renew their work permit with the government face up 3 years in prison and a fine of ₦500,000
Expanding into Nigeria
Employers are responsible for obtaining work and residence permits for their expatriate employees, along with their employment contracts. Foreign investors must acquire expatriate quotas to employ expatriates.
A Nigeria PEO or EOR can serve as a fast-track path to access the Nigerian market. A PEO or EOR will cover every aspect of the expansion process, ensuring full compliance.
Cultural Information
Officially, English is the official language of Nigeria, however the country encompasses over 500 different languages nationwide due to it being inhabited by over 250 ethnic groups. Three of the largest ethnic groups in Nigeria are the Hausa, Igbo, and Yoruba, and they bring diverse cultures and unique art to the nation. A rich array of cuisines, fashion, and festivals exist across Nigeria’s different tribes.
Home to over 200 million inhabitants, Nigeria has one of the largest young populations, and is the seventh most populous country in the world.
Nigeria’s constitution ensures freedom of religion, and the country is simultaneously home to some of the world’s largest Muslim and Christian populations. The Nigerian population is estimated to be 53.5% Muslim and 45.9% Christian (10.6% Roman Catholic, 35.3% other Christian, and 0.6% others).
Impacts of COVID-19
Since the outbreak of the COVID-19 pandemic, most organisations in Nigeria have adopted full-time remote working practices, while others have adopted a ‘hybrid’ type of working. There are still some organisations who embrace full-time office working, but these are primarily companies whose operations require on-site working.
The Nigerian Market – Did you know?
- Nigeria is home to 7% of all languages spoken on Earth
- Originally forming in 1914, Nigeria gained independence from colonial rule in 1960
- The Igbo people are descendants of the Nri Kingdom, and are the oldest tribe in Nigeria. They make up around 18% of the southeast Nigerian population
- Nigeria’s population is expected to exceed that of the United States by 2050
Nigeria PEO Services
Nigeria PEO Services
Nigeria is the largest economy in Africa and is a true economic powerhouse. With a population of over 200 million and the highest GDP in Africa, the country boasts a wealth of opportunities for global businesses looking to enter a dynamic new market.
Nigeria also has the largest young population in Africa, with over 50% of the population falling into the age bracket of 15-54 years. Nigeria’s economy is made-up of a flourishing start-up space, and holds the highest number of start-ups in Africa at over 750. Three of Nigeria’s companies in the fintech sector (Flutterwave, Opay, and Andela) have achieved classification as ‘unicorns’, with respective values of over $1bn.
The industries that make up the bulk of the Nigerian economy include petroleum, tourism, agriculture, and mining.
Working in Nigeria
Employment Information
- The currency of Nigeria is the Nigerian Naira (₦)
- There is a mandated minimum wage of ₦30,000 (which equates to approximately $73) per month
- Workers in Nigeria are entitled to 11 paid holidays, including New Year’s Day, Good Friday, Easter Monday, Worker’s Day, Democracy Day, Nigerian National Day, Christmas Day, Boxing Day and Eid
- Hours and overtime rates vary in Nigeria, dependant on the employment contracts and agreements in place
- In line with the Nigerian Labor law, at least 6 paid days are granted to employees after 1 year of service. Maternity leave is generally agreed on in employment contracts, with 3 months of paid leave being common. Paternity leave is also occasionally provided
- Notice periods depend on the employment contracts, but they generally range from 1 week to 1 month on average
- Statutory payroll deductions include:
- Pension Contribution
- Group Life Insurance
- National Social Insurance Trust Fund (NSITF) National
- Housing Fund (NHF)
- Industrial Training Funds (ITF)
- PAYE
- Health insurance for employees is common practice, but is not mandatory
- Foreign employees who fail to renew their work permit with the government face up 3 years in prison and a fine of ₦500,000
Expanding into Nigeria
Employers are responsible for obtaining work and residence permits for their expatriate employees, along with their employment contracts. Foreign investors must acquire expatriate quotas to employ expatriates.
A Nigeria PEO or EOR can serve as a fast-track path to access the Nigerian market. A PEO or EOR will cover every aspect of the expansion process, ensuring full compliance.
Cultural Information
Officially, English is the official language of Nigeria, however the country encompasses over 500 different languages nationwide due to it being inhabited by over 250 ethnic groups. Three of the largest ethnic groups in Nigeria are the Hausa, Igbo, and Yoruba, and they bring diverse cultures and unique art to the nation. A rich array of cuisines, fashion, and festivals exist across Nigeria’s different tribes.
Home to over 200 million inhabitants, Nigeria has one of the largest young populations, and is the seventh most populous country in the world.
Nigeria’s constitution ensures freedom of religion, and the country is simultaneously home to some of the world’s largest Muslim and Christian populations. The Nigerian population is estimated to be 53.5% Muslim and 45.9% Christian (10.6% Roman Catholic, 35.3% other Christian, and 0.6% others).
Impacts of COVID-19
Since the outbreak of the COVID-19 pandemic, most organisations in Nigeria have adopted full-time remote working practices, while others have adopted a ‘hybrid’ type of working. There are still some organisations who embrace full-time office working, but these are primarily companies whose operations require on-site working.
The Nigerian Market - Did you know?
- Nigeria is home to 7% of all languages spoken on Earth
- Originally forming in 1914, Nigeria gained independence from colonial rule in 1960
- The Igbo people are descendants of the Nri Kingdom, and are the oldest tribe in Nigeria. They make up around 18% of the southeast Nigerian population
- Nigeria’s population is expected to exceed that of the United States by 2050
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