HR, PEO & Employer of Record (EOR) Services in Nigeria

Introduction

Nigeria is Africa’s largest economy and most populous nation, offering unparalleled access to a vast and rapidly growing consumer market. With abundant natural resources, a thriving tech and startup ecosystem, and strategic positioning as West Africa’s economic hub, it presents strong opportunities for investors and businesses alike. Combined with an increasingly skilled workforce and ongoing reforms to improve the business climate, Nigeria is a prime destination for companies seeking scalable growth in Africa.

EOR & PEO Solutions in Nigeria

If you’re looking to hire employees in Nigeria without setting up a legal entity, using an Employer of Record (EOR) like Empleyo is the simplest and most compliant path forward. An EOR in Nigeria acts as the official legal employer on your behalf, managing everything from payroll and HR administration to employment contracts and statutory employee benefits.

This model allows you to expand into Nigeria quickly, while remaining fully compliant with local labor laws without the complexity or cost of registering a local entity.

What Is an Employer of Record in Nigeria?

An Employer of Record Nigeria (also known as an EOR provider) enables businesses to hire and onboard Nigeria employees without having to incorporate in-country. The EOR manages:

You continue to oversee your team’s day-to-day tasks, while the EOR service handles legal obligations as the official employer on paper.

What’s the Difference Between EOR and PEO?

A Professional Employer Organization (PEO) typically supports businesses that already have a registered entity in Nigeria, offering co-employment solutions for HR, payroll, and benefits. An EOR, however, is ideal when you don’t have a legal presence in Vietnam but still want to hire full-time staff.

Whether you choose an EOR or PEO depends on your Nigeria hiring strategy, budget, and long-term plans for the market.

Benefits of Using an EOR Service in Nigeria

By using an EOR solution, companies can confidently build their team in Nigeria, access top talent in Nigeria, and stay focused on business growth without getting tangled in bureaucracy.

Hiring in Nigeria

Nigeria is a thriving market with a growing pool of skilled professionals, making it an ideal destination for businesses looking to expand globally. But to hire in Nigeria successfully, it’s important to understand your options especially when you don’t have a legal entity in Nigeria.

That’s where using an Employer of Record in Nigeria makes all the difference.

Your Hiring Options in Nigeria

Businesses have two main paths to hire employees in Nigeria:

The second option is faster, lower-risk, and ideal for companies that want to test the Nigerian market, launch quickly, or hire remote employees without permanent infrastructure.

Why Use an EOR to Hire in Nigeria?

This approach is especially useful for startups, global teams, and growing businesses that need to hire quickly and remain fully compliant.

Employment in Nigeria

Understanding how employment in Nigeria works is key to managing your team successfully and staying compliant. Whether you’re hiring directly or using an Employer of Record (EOR), companies must follow Nigerian labor laws closely especially when it comes to employment contracts, payroll, and employee benefits.

That’s why many growing businesses choose to use an EOR in Nigeria to handle these responsibilities with confidence.

Employment Contracts in Nigeria

All employees in Nigeria must be hired under a written employment contract, clearly outlining the job role, salary, benefits, working hours, and duration of employment. Contracts must comply with the Labor Code of Nigeria, and are usually signed before or on the first day of work.

By working with a Nigeria employer of record, you can ensure that all employment contracts in Nigeria are properly structured, compliant, and aligned with local requirements without having to hire a full in-house HR team.

Payroll & Employer Contributions

Payroll in Nigeria involves more than just paying a monthly salary. Employers are required to withhold income tax and make contributions to:

These deductions and employer contributions are calculated based on the employee’s gross monthly salary, and must be submitted on time to remain compliant. An EOR in Nigeria handles this for you, managing all payroll, tax filings, and reporting on your behalf.

Employee Benefits and Leave

Nigerian labor law mandates several employee benefits, including:

Using an employer of record service ensures your team in Nigeria receives all required benefits and that your business remains fully compliant with Nigerian employment law.

Termination & Notice Periods

Ending an employment contract in Nigeria requires adherence to the Labour Act, which prescribes notice periods based on the employee’s length of service and role. Notice typically ranges from 1 week to 1 month, unless a longer period is agreed in the contract, and termination may also trigger severance or redundancy payments in certain cases.

Partnering with an Employer of Record ensures these processes are managed in compliance with Nigerian labor laws, reducing risks while supporting fair and transparent employee offboarding.

Visas & Permits in Nigeria

If you’re planning to hire employees in Nigeria or bring in foreign talent, understanding Nigeria’s visa and permit requirements is critical. Navigating these processes can be complex, but working with a trusted Employer of Record (EOR) in Nigeria makes it much easier.

An experienced EOR provider will ensure all permits are handled legally, so you can focus on building your team in Nigeria with confidence.

Work Permits for Foreign Employees in Nigeria

Foreign nationals who plan to work in Nigeria must obtain the appropriate work authorization, typically beginning with a subject-to-regularization (STR) visa followed by a Combined Expatriate Residence Permit and Aliens Card (CERPAC). This process requires employer sponsorship and government approval to ensure the role cannot be readily filled by local talent.

By partnering with an Employer of Record, companies can navigate these requirements efficiently, ensuring compliance with immigration laws while enabling smooth onboarding of foreign professionals into the Nigerian market.

Types of Visas for Foreign Talent

There are several types of visas used to work or do business in Nigeria, including:

Each visa type has specific use cases, duration limits, and documentation requirements. If you’re looking to hire in Nigeria or send international staff temporarily, an EOR Nigeria solution helps you identify the right visa and manage the application process end-to-end.

Business Permits for Foreign Companies

To operate directly in Nigeria, foreign companies typically need to register a legal entity in Nigeria and apply for a business license. This can be a time-consuming process that includes office registration, investment approvals, and compliance with Nigerian labor laws.

Alternatively, you can use an EOR in Nigeria to bypass the need for a local entity. The Nigeria employer of record is already registered and authorized to employ staff and manage payroll, contracts, and local compliance making it easier and faster to hire employees in Nigeria.

Why Visas & Permits Matter for Global Hiring

If you’re hiring foreign employees in Nigeria, or placing international staff in-country, it’s essential to stay compliant with immigration laws. The right employer of record service helps you:

Common Questions on EOR in Nigeria

Can an EOR hire both Nigerian nationals and expatriates?

Yes. An EOR can hire both local employees and foreign nationals. For expatriates, the EOR oversees visa and work authorization processes, ensuring all legal requirements are met before employment begins.

How are employment contracts managed under an EOR in Nigeria?

Employment contracts are issued and managed by the EOR in compliance with the Labour Act. They include statutory provisions along with client-specific terms such as job duties, compensation, and company policies.

What happens if I need to terminate an employee under an EOR?

The EOR ensures that terminations comply with Nigerian labor laws, including notice requirements and severance or redundancy pay where applicable. This reduces legal exposure and ensures a fair and transparent process.

How does an EOR ensure compliance with Nigerian labor laws?

The EOR stays updated on legislative changes and handles all compliance aspects, including payroll filings, pension contributions, and insurance requirements. This ensures your workforce remains compliant and reduces the risk of penalties.

Can an EOR support short-term or project-based employment in Nigeria?

Yes. EORs can facilitate both long-term and short-term employment arrangements, making it easier for companies to scale their workforce for temporary projects or test the market without the need for a legal entity.

What happens if I want to convert my EOR-hired employee to my own local entity later?

A great EOR solution is flexible. When your business in Vietnam is ready to set up its own local entity, the EOR provider can support the employee transition process, including new contracts, benefits transfer, and legal filings — ensuring a smooth shift from EOR to direct employment.