How to hire employees in Nigeria
🇳🇬Nigeria · Hiring Guide

How to Hire Employees in Nigeria

A complete guide for foreign companies, EOR vs entity setup, statutory compliance, work permits, and onboarding timeline. Build your Nigerian team in 72 hours.

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Nigeria Hiring Quick Reference

EOR Setup Time
72 hours
Entity Incorporation
4-12 weeks via CAC (Corporate Affairs Commission)
Capital
Abuja (commercial hub: Lagos)
Currency
Nigerian Naira (NGN)
Corporate Tax
30%
PAYE Range
7%, 24% progressive
Pension
18% total (8% employee + 10% employer) (PenCom)
Legal Framework
Labour Act Cap L1 LFN 2004

Your Options

EOR, entity, or contractor, which is right for you?

Recommended

Employer of Record (EOR)

Speed: 72 hours
Best for: Fastest compliant hiring for foreign companies entering Nigeria without a CAC entity
Pros
Active in 72 hours, no CAC entity registration needed
All 5 statutory bodies managed: PAYE/SIRS, PenCom (18%), ITF, NHF, NSITF
Labour Act Cap L1 LFN 2004 compliance from day one
No Nigerian registered office, TIN, or SIRS registration required on your side
Scalable from 1 to 100+ employees on the same timeline
State-level PAYE managed for Lagos, Abuja, and all other Nigerian states
Eliminates permanent establishment risk for exploratory Nigeria operations
Cons
- Two Max Group is the employer of record, not your company
- Not suitable for full market incorporation or regulated sector licensing (financial services, telecoms require CAC)

Register a CAC Entity

Speed: 4-12 weeks
Best for: Full Nigeria market entry, regulated sector operations, or long-term hiring at scale
Pros
Full legal presence, sign contracts and open bank accounts in company name
Required for financial services, telecoms, and other regulated sectors
Direct employer status, hire as many staff as needed
Eligible for NIPC (Nigerian Investment Promotion Commission) incentives
Cons
- CAC registration plus: FIRS TIN, state SIRS, PenCom, ITF, NHF, NSITF registration, 4-12 weeks total
- Share capital must be deposited in a Nigerian bank account
- 5 different regulatory bodies all require separate registration
- Ongoing annual returns to CAC, FIRS, and state SIRS
- Annual ITF returns, NSITF filings, and PenCom audit exposure
- Minimum share capital requirements vary by sector

The EOR Process

From brief to employed in 72 hours

1

01 · Agree Terms with Your Hire

Agree role, remuneration, and benefits package (basic salary + housing + transport is the standard Nigerian structure for state PAYE purposes). We advise on market-competitive rates for Lagos and other locations.

2

02 · Send Employee Details to Two Max Group

Provide name, location, role, salary, and start date. We prepare a Labour Act-compliant employment contract within 24 hours.

3

03 · Contract Signed

The employee signs the employment agreement. Two Max Group signs as the employer of record.

4

04 · Multi-Body Statutory Registrations

We register the employee with: the relevant State IRS (SIRS/LIRS) for PAYE; a PFA for PenCom RSA; the NHF for housing fund deductions; and complete NSITF coverage. All within the 72-hour window.

5

05 · First Payroll Run

Salary disbursed to the employee's Nigerian bank account. PAYE remitted to SIRS, PenCom pension to PFA (within 7 days), NHF, and NSITF contributions all remitted. One consolidated invoice to you.

6

06 · Ongoing HR and Compliance

Leave management, employment changes, disciplinary procedures, and all 5 statutory bodies maintained every month. ITF annual levy remitted. Monthly reporting to your finance team.

Common Questions

Hiring in Nigeria, FAQs

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Active in 72 hours. No Nigeria entity required.

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