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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