Employer of Record (EOR) in Nigeria: Complete 2026 Guide
Guide to using an EOR in Nigeria — costs, Labour Act compliance, top providers, and comparison with setting up a local entity.
Nigeria is Africa's most populous country and third-largest economy, with 4.0% GDP growth forecast for 2026. A large, young, English-speaking workforce and a growing technology sector make it increasingly attractive for international hiring — particularly in IT, customer support, and creative services.
Nigeria's employment framework includes the Labour Act, the Pension Reform Act, new PAYE tax rules (effective January 2026), and mandatory pension contributions. An Employer of Record (EOR) handles compliance with these requirements.
Why Use an EOR in Nigeria?
New tax rules (2026). The Nigeria Tax Act 2025, effective January 2026, introduced a new 6-band PAYE structure with an NGN 800,000 tax-free threshold and abolished the CRA. An EOR stays current on these changes.
Pension contributions. The Contributory Pension Scheme requires employer contributions of 10% and employee contributions of 8% of pensionable emoluments. Compliance is managed through Pension Fund Administrators.
Entity setup complexity. Registering a foreign company in Nigeria can take 4-6 weeks and involves the Corporate Affairs Commission (CAC), FIRS, and multiple state-level registrations.
NSITF and NHF. Employers must contribute to the Nigeria Social Insurance Trust Fund (1%) and manage National Housing Fund deductions.
Important
For a detailed breakdown of Nigerian labor laws including minimum wages, PAYE tax, pension contributions, and leave policies, see our Nigeria Labor Law Compliance Guide.
Key Employment Regulations
| Regulation | Details |
|---|---|
| Minimum wage | NGN 70,000/month |
| Standard hours | 40 hours/week (office); 48 hours/week (manufacturing) |
| Overtime | No statutory rate; 1.25-1.5x by practice |
| Annual leave | 6 days after 12 months |
| Maternity leave | 12 weeks fully paid |
| Paternity leave | 10 days |
| Sick leave | 12 days/year |
| Public holidays | 11 gazetted holidays |
| Pension (employer) | 10% of pensionable emoluments |
| Pension (employee) | 8% |
| NSITF (employer) | 1% |
| Notice period | 1 month (typical) |
EOR Costs in Nigeria
Most EOR providers charge $300 to $500 per employee per month. Statutory employer costs add approximately 12-15% on top of salary (pension 10% + NSITF 1% + other levies).
EOR vs Setting Up a Local Entity
| Factor | EOR | Local Entity (Ltd) |
|---|---|---|
| Setup cost | $0 | $5,000-$15,000 |
| Setup time | 5-10 days | 4-6 weeks |
| Best for | 1-8 employees | 8+ employees |
Break-even point: Typically 5-8 employees given moderate entity setup costs.
Top EOR Providers for Nigeria
| Provider | Owned Entity | Starting Price | Strengths |
|---|---|---|---|
| Deel | Yes | $599/mo | Broad Africa coverage |
| Velocity Global | Yes | Custom | Strong Africa presence |
| Remote | Yes | $599/mo | All owned entities |
| Multiplier | Partner | $400/mo | Lower cost option |
For a full comparison, see our Best Employer of Record Companies guide.
Managing a Team in Nigeria?
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