What should a founder settle before hiring a first employee in Nigeria?
A Nigeria-resident employee's pay is chargeable to Nigerian tax wherever it arises, unless an exemption applies, such as the one for employment pay at or below the national minimum wage, so a first hire usually brings Nigerian payroll duties even when a foreign company is the employer. As a practical safeguard, a founder settles who the employer is, the role and written terms, and payroll registration before the start date.
The hiring file records the legal employer's name and address, the candidate, actual duties, reporting line, work location and State of residence, start date, pay and payment cycle, working hours, leave, and any fixed-term expiry. Each of those facts feeds a later question in this guide, from worker coverage to payroll tax and pension.
A startup with a U.S. or other foreign parent and no Nigerian company still has to decide who the employer is. This guide does not resolve whether a foreign company employing staff in Nigeria must incorporate locally, or how a foreign employer registers for each Nigerian payroll scheme. Those questions sit with the company's Nigerian counsel and payroll provider before the first salary run.
A foreign national hired to work in Nigeria is a separate immigration workstream. The Nigeria Immigration Service describes the CERPAC residence permit as the card for foreigners residing or employed in Nigeria.
The Nigeria hiring reviewer checklist turns these points into review items.
Sources for this answer
Section 12 treats the income of a Nigeria-resident individual as accruing in Nigeria and chargeable to Nigerian tax wherever it arises.
12. The income, gains or profits of an individual who is a resident of Nigeria are deemed to accrue in Nigeria and are chargeable to tax in Nigeria wherever they arise, and whether or not the income, profits or gains have been brought into or received in Nigeria.
See Nigeria Tax Act, 2025 (Act No. 7), s. 12; Official Gazette No. 117, 26 June 2025, National Assembly copy; commencement 1 January 2026; retrieved 8 October 2026.
Section 162(1)(t) exempts from income tax a person's income from an employment that pays gross income of the national minimum wage or less.
(q) dividend received from investments in wholly export-oriented businesses ; (r) profits of a company engaged in sporting activities ; (s) dividend, interest, rent or royalty derived from outside Nigeria and brought into Nigeria through approved channels ; (t) income of a person from an employment where such person earns gross income of national minimum wage or less from such employment ; (u) wages and salaries of military officers.
See Nigeria Tax Act, 2025 (Act No. 7), s. 162(1)(q)–(u), listing exemptions from tax under Chapter Two; Official Gazette No. 117, 26 June 2025, National Assembly copy; commencement 1 January 2026; retrieved 13 October 2026.
The Twelfth Schedule deems an individual who performs duties in Nigeria for a foreign employer resident, for the year, in the place where the individual resides.
1. An individual, not being a person to whom section 3 (1) (a) (iv) of the Nigeria Tax Administration Act applies, who holds a foreign employment on 1st January in a year of assessment, or who first becomes liable to income tax in Nigeria for that year by reason of his entering that employment during that year, shall be deemed to be resident for that year – (a) where the duties are wholly performed outside Nigeria, in the territory in which the principal office of his employer is situated on that day or on the day his foreign employment commences, as the case may be ; and (b) where the duties are performed or exercised in Nigeria for a foreign employer, in the place of residence, and in the absence of such, in the place where the person usually resides.
See Nigeria Tax Act, 2025 (Act No. 7), Twelfth Schedule, para. 1; Official Gazette No. 117, 26 June 2025, National Assembly copy; retrieved 8 October 2026.
Section 51(6) requires an employer to deduct an employee's income tax from emoluments, and section 51(7) requires the year's deductions to equal the tax chargeable.
(6) Income tax chargeable on an employee whether or not the assessment has been made, shall be deducted from any emolument payable, or from any payment made on account of the emolument, by the employer to the employee. (7) In arriving at the amount of income tax to be deducted from any payment of or on account of the emolument to an employee, the employer shall ensure that the aggregate amount of all the deductions made during a year of assessment shall equal the income tax chargeable on the employee in respect of its emoluments for that year.
See Nigeria Tax Administration Act, 2025 (Act No. 5), s. 51(6)–(7); Official Gazette No. 117, 26 June 2025, National Assembly copy; retrieved 8 October 2026.
The Nigeria Immigration Service describes CERPAC as the residence permit issued to foreigners residing or employed in Nigeria.
The Comprehensive Expatriate Residence Permit and Automated Cards (CERPAC) is a residence permit issued to foreigners residing or employed in Nigeria.
See Nigeria Immigration Service, CERPAC information page, retrieved 8 October 2026.
Does Nigeria's Labour Act cover every employee?
Nigeria's Labour Act does not cover every employee as a worker: section 91 excludes, among others, people exercising administrative, executive, technical or professional functions. Coverage depends on actual duties and the listed exclusions, rather than a job title.
Section 91 brings manual and clerical work within the definition, and it covers both a contract of service and a contract personally to execute any work. A software engineer or senior manager therefore needs a coverage assessment before a founder relies on the Labour Act rules in this guide, including written particulars, leave, notice and the medical examination.
Exclusion from the Labour Act's worker definition is not exclusion from every other law. The tax, pension and data questions below apply their own statutes, discussed in those questions. The HIV and AIDS (Anti-Discrimination) Act, for example, applies to employers and employees in the public and private sectors. As a drafting safeguard, a complete written agreement records an excluded employee's agreed terms.
Calling someone a contractor does not settle the point either. The Labour Act definition reaches a contract personally to execute work, so a long-term individual contractor who works only for the company needs the same coverage analysis as an employee, still subject to the statutory exclusions. This guide does not set out a Nigerian employee-versus-contractor test.
Sources for this answer
Section 91 defines worker for this Act and lists exclusions, including administrative, executive, technical and professional functions.
"worker" means any person who has entered into or works under a contract with an employer, whether the contract is for manual labour or clerical work or is expressed or implied or oral or written, and whether it is a contract of service or a contract personally to execute any work or labour, but does not include‐ (a) any person employed otherwise than for the purposes of the employer's business; or (b) persons exercising administrative, executive, technical or professional functions as public officers or otherwise; or (c) members of the employer's family; or (d) representatives, agents and commercial travellers in so far as their work is carried on outside the permanent workplace of the employer's establishment; or (a) any person to whom articles or materials are given out to be made up, cleaned, washed, altered, ornamented, finished, repaired or adapted for sale in his own home or on other premises not under the control or management of the person who gave out the articles or the material; or (b) any person employed in a vessel or aircraft to which the laws regulating merchant shipping or civil aviation apply;
See Labour Act, Cap L1, Laws of the Federation of Nigeria 2004, s. 91(1), definition of worker; official NIPC resource PDF, retrieved 28 September 2026.
Section 2(2) applies the Act to employers and employees in both public and private sectors; Labour Act worker exclusions do not determine its scope.
(2) This Act applies to all employers of labour and employees in the public and private sectors including the Nigeria Armed Forces, Nigeria Police, State Security Services, other Para-Military Organizations, Schools, Hospitals and places of worship.
See HIV and AIDS (Anti-Discrimination) Act 2014, Act No. 7, s. 2(2), Official Gazette No. 125, 28 November 2014, printed A125 (PDF p. 4); commencement 27 November 2014; Gazette facsimile hosted by ILO, retrieved 28 September 2026.
What must written employment terms in Nigeria contain?
For a worker covered by Nigeria's Labour Act, section 7(1) requires written particulars within three months after employment starts, unless the worker has a written employment contract covering every required particular and has a copy under section 7(6). An offer letter can serve that purpose if it meets both conditions.
Section 7(1) lists employer details; the worker's name and address and place and date of engagement; nature of employment; the expiry date of a fixed-term contract; the notice period with regard to section 11; wage rates, calculation, payment method and frequency; hours, holidays and holiday pay, sickness or injury absence and sick-pay terms; and special conditions. Completing these fields before the offer goes out is a practical safeguard, separate from the statutory three-month deadline. A signature alone does not establish that the contract covers every particular or that the worker has a copy.
Policies can supply some terms. Section 7(3) permits the statement to refer to another document that the worker has reasonable opportunities to read or can otherwise reasonably access. A later change normally needs a written statement within one month under section 7(2), but section 7(4) offers an alternative where the statement says future changes will be entered in the referenced document and each change is duly recorded within one month. If no copy of a change statement is left with the worker, section 7(2) requires the employer to preserve it and give the worker reasonable opportunities to read it or other reasonable access. These provisions govern information about terms; they do not give an employer a general right to change agreed terms on its own.
Sources for this answer
Section 7(1) specifies the three-month deadline and the required written particulars for covered workers.
(1) Not later than three months after the beginning of a worker's period of employment with an employer, the employer shall give to the worker a written statement specifying‐ (a) the name of the employer or group of employers, and where appropriate, of the undertaking by which the worker is employed; (b) the name and address of the worker and the place and date of his engagement; (c) the nature of the employment; (d) if the contract is for a fixed term, the date when the contract expires; (e) the appropriate period of notice to be given by the party wishing to terminate the contract, due regard being had to section 11 of this Act; (f) the rates of wages and method of calculation thereof and the manner and periodicity of payment of wages; (g) any terms and conditions relating to‐ (i) hours of work; or (ii) holidays and holiday pay; or (iii) incapacity for work due to sickness or injury, including any provisions for sick pay; and (h) any special conditions of the contract.
See Labour Act, Cap L1, Laws of the Federation of Nigeria 2004, s. 7(1); official NIPC resource PDF, retrieved 28 September 2026.
The separate written-statement requirement does not apply where a written employment contract covers every listed particular and the worker has a copy.
(6) The provisions of this section in respect of written statements shall not apply if‐ (a) a worker has a written contract of employment which covers each of the particulars mentioned in subsection (1) of this section; and (b) he has a copy of that written contract.
See Labour Act, Cap L1, Laws of the Federation of Nigeria 2004, s. 7(6); official NIPC resource PDF, retrieved 28 September 2026.
Section 7(3) permits reference to another document that the worker has reasonable opportunities to read or can reasonably access.
(3) A statement under subsection (1) or (2) of this section may, for all or any of the particulars to be given by the statement, refer the worker to some other document which the worker has reasonable opportunities of reading in the course of his employment or which is made reasonably accessible to the worker in some other way.
See Labour Act, Cap L1, Laws of the Federation of Nigeria 2004, s. 7(3); official NIPC resource PDF, retrieved 28 September 2026.
Section 7(2) requires communicating changes within one month and specifies preservation and access when no copy is left.
(2) If after the date to which the said statement relates there is a change in the terms to be included or referred to in the statement the employer‐ (a) shall, not more than one month after the change, inform the worker of the nature of the change by a written statement; and (b) if he does not leave a copy of the statement with the worker, shall preserve the statement and ensure that the worker has reasonable opportunities of reading it (c) in the course of his employment, or that it is made reasonably accessible to the worker in some other way.
See Labour Act, Cap L1, Laws of the Federation of Nigeria 2004, s. 7(2); official NIPC resource PDF, retrieved 28 September 2026.
Section 7(4) permits its advance-reference alternative only where the indicated changes are duly entered or recorded within one month.
(4) If the employer, in referring in the said statement to any such document, indicates to the worker that future changes in the terms particularised in the document will be entered in the document (or recorded by some other means for the information of persons referred to in the document), the employer need not under subsection (2) of this section inform the worker of any such change which is duly entered or recorded not more than one month after the change is made.
See Labour Act, Cap L1, Laws of the Federation of Nigeria 2004, s. 7(4); official NIPC resource PDF, retrieved 28 September 2026.
Does Nigeria's minimum wage apply to a small startup?
Nigeria's National Minimum Wage Act 2019 does not apply its minimum-wage duty to an establishment employing fewer than 25 persons, or to part-time and commission-paid workers. Where no section 4(1) exemption applies, an agreement to pay less than the national minimum wage is void.
Nigerian practitioners report that the 2024 amendment raised the national minimum wage to ₦70,000 a month, shortened the review cycle from five years to three, and kept the section 4 exemptions. This guide has not retrieved the enacted 2024 text from an official host, so the rate rests on that commentary rather than on a quoted section.
A startup that will cross 25 employees, or a group with several Nigerian entities, needs a reading of how the Act counts staff in an establishment before it relies on the small-employer exemption. This guide does not resolve how the exemption counts staff across related companies. A full-time salary above ₦70,000 a month avoids the question.
Sources for this answer
Section 4(1) disapplies the section 3(1) minimum-wage duty for part-time and commission or piece-rate establishments, establishments employing fewer than 25 persons, seasonal workers, and specified vessel and aircraft employment.
4.—(1) Section 3 (1) does not apply to— & (a) an establishment in which workers are employed or paid on— (7) part-time basis, and (ji) commission or piece-rate ; (5) an establishment employing less than 25 persons ; (c) workers in seasonal employment like agriculture ; and (d) any person employed ina vessel or aircraft to which the laws regulating merchant shipping or civil aviation apply.
See National Minimum Wage Act, 2019 (Act No. 8), s. 4(1); Official Gazette No. 62 supplement, archived facsimile, retrieved 8 October 2026. The text layer is OCR and distorts the printed paragraph labels (i), (ii) and (b); those distortions are preserved in the quote.
Section 3(3) makes an agreement to pay less than the national minimum wage void.
(3) Any agreement for the payment of wages less than the national minimum wage is void.
See National Minimum Wage Act, 2019 (Act No. 8), s. 3(3); Official Gazette No. 62 supplement, archived facsimile, retrieved 8 October 2026.
Olisa Agbakoba Legal reports that the 2024 amendment raised the national minimum wage to ₦70,000 a month.
The Act raises the National Minimum Wage from ₦30,000 to ₦70,000 per month, effective July 2024.
See Seun Akinade and Ifeoma Ezenwa, Olisa Agbakoba Legal, Navigating Labour Compliance in Nigeria: the New Minimum Wage Amendment Act, 20 November 2024, retrieved 8 October 2026.
SimmonsCooper Partners report that the 2024 amendment raised the rate, shortened the review period to three years and kept the section 4 exemptions.
The minimum wage has been raised from N30,000 toN70,000. - Review Period Reduction: The interval for reviewing the minimum wage has been shortened from five to three years, enabling more responsive adjustments to economic conditions. Unchanged Exemptions Despite these beneficial changes, the amendment retains several exemptions specified under Section 4 from the 2019 Act: - Part-Time and Commission-Based Employees: Workers earning on a part-time or commission basis remain exempt from the minimum wage. - Small Establishments: Businesses with fewer than 25 employees are not obligated to pay the statutory minimum wage.
See SimmonsCooper Partners (collective byline), The 2024 Minimum Wage Act: A Closer Look at What’s New and What’s Not, 31 July 2024, retrieved 8 October 2026.
What paid leave must a Nigerian offer include?
For a worker covered by Nigeria's Labour Act, section 18 gives at least six working days' holiday with full pay after twelve months' continuous service, and section 16 gives paid sick leave of up to twelve working days in each calendar year, subject to its conditions. Sick pay requires temporary illness certified by a registered medical practitioner, a contract that continues with the worker otherwise ready and willing to work, and consent to an employer-nominated examination if requested.
For a worker under sixteen, including an apprentice, section 18 sets the floor at twelve working days. Section 18 also bars paying wages in place of the annual holiday while the contract continues and allows deferral by agreement up to 24 months' service. Under section 18(4), a worker who leaves after at least six but less than twelve months' continuous service, or at least six months after last qualifying for a holiday, is paid a proportion of one week's full pay for that period. Section 19 counts only wages received in money, excluding overtime and other allowances, in calculating leave pay and sick pay.
Section 54 gives a woman in a covered undertaking the right to leave work six weeks before expected confinement on a medical certificate, bars work for six weeks after confinement, and requires at least half pay for that absence if she has six months' continuous service. The statute sets a floor for covered workers; a contract or policy can give more.
Sections 16 and 18 apply to workers within the Labour Act's definition, while section 54 is framed around women in the listed undertakings rather than that definition. Because sections 16 and 18 do not set leave for an employee outside the worker definition, stating annual and sick leave expressly in the offer letter or handbook is a drafting safeguard for that employee; maternity rights need a separate section 54 assessment.
Sources for this answer
Section 18 gives a covered worker at least six working days' paid holiday after twelve months' continuous service, permits deferral by agreement and bars pay in lieu while the contract continues.
(1) Every worker shall be entitled after twelve months' continuous service to a holiday with full pay of‐ (a) at least six working days; or (b) in the case of a person under the age of sixteen years (including an apprentice), at least twelve working days. (2) The holiday mentioned in subsection (1) of this section may be deferred by agreement between the employer and the worker: Provided that the holiday‐earning period shall not thereby be increased beyond 24 months' continuous service. (3) It shall be unlawful for an employer to pay wages in lieu of the holiday mentioned in subsection (1) of this section to a worker whose contract has not terminated.
See Labour Act, Cap L1, Laws of the Federation of Nigeria 2004, s. 18(1)–(3); official NIPC resource PDF, retrieved 28 September 2026.
Section 18(4) entitles a worker who leaves after six to under twelve months' continuous service, or at least six months after last qualifying for a holiday, to a proportion of one week's full pay for that period.
(4) A person who ceases to be employed after having completed‐ (a) less than twelve but not less than six months in the continuous employment of an employer; or (b) not less than six months in the continuous employment of an employer since he last qualified for a holiday under subsection (1) of this section, shall be paid with respect to that period of employment an amount bearing the same proportion to full pay for one week at his normal rate as that period bears to twelve months.
See Labour Act, Cap L1, Laws of the Federation of Nigeria 2004, s. 18(4); official NIPC resource PDF, retrieved 13 October 2026.
Section 19 counts only money wages, excluding overtime and other allowances, in calculating leave pay and sickness benefits.
In the calculation of leave pay and sickness benefits only that part of his wages which a worker receives in money (excluding overtime and other allowances) shall be taken into account.
See Labour Act, Cap L1, Laws of the Federation of Nigeria 2004, s. 19; official NIPC resource PDF, retrieved 13 October 2026.
Section 16 entitles a covered worker to wages for up to twelve working days a year of certified temporary illness, subject to the stated conditions.
Subject to the Workmen's Compensation Act, a worker shall be entitled to be paid wages up to twelve working days in anyone calendar year during absence from work caused by temporary illness certified by a registered medical practitioner: [Cap. W6.] Provided that this section shall not apply unless‐ (a) the contract remains in existence during the period of absence and the worker is ready and willing to perform his part of the contract save for the incapacity produced by the illness; and (b) the worker, if so requested by the employer, consents to be examined by a qualified medical practitioner nominated by the employer.
See Labour Act, Cap L1, Laws of the Federation of Nigeria 2004, s. 16; official NIPC resource PDF, retrieved 28 September 2026. The Workmen's Compensation Act referred to was repealed by the Employees' Compensation Act 2010.
Section 54(1) gives a woman in a covered undertaking pre- and post-confinement leave and at least half pay after six months' continuous service.
(1) In any public or private industrial or commercial undertaking or in any branch thereof, or in any agricultural undertaking or any branch thereof, a woman‐ (a) shall have the right to leave her work if she produces a medical certificate given by a registered medical practitioner stating that her confinement will probably take place within six weeks; (b) shall not be permitted to work during the six weeks following her confinement; (c) if she is absent from her work in pursuance of paragraph (a) or (b) of this subsection and had been continuously employed by her then employer for a period of six months or more immediately prior to her absence, shall be paid not less than fifty per cent of the wages she would have earned if she had not been absent; and (d) shall in any case, if she is nursing her child, be allowed half an hour twice a day during her working hours for that purpose.
See Labour Act, Cap L1, Laws of the Federation of Nigeria 2004, s. 54(1); official NIPC resource PDF, retrieved 28 September 2026.
Section 91 defines worker for this Act and lists exclusions, including administrative, executive, technical and professional functions.
"worker" means any person who has entered into or works under a contract with an employer, whether the contract is for manual labour or clerical work or is expressed or implied or oral or written, and whether it is a contract of service or a contract personally to execute any work or labour, but does not include‐ (a) any person employed otherwise than for the purposes of the employer's business; or (b) persons exercising administrative, executive, technical or professional functions as public officers or otherwise; or (c) members of the employer's family; or (d) representatives, agents and commercial travellers in so far as their work is carried on outside the permanent workplace of the employer's establishment; or (a) any person to whom articles or materials are given out to be made up, cleaned, washed, altered, ornamented, finished, repaired or adapted for sale in his own home or on other premises not under the control or management of the person who gave out the articles or the material; or (b) any person employed in a vessel or aircraft to which the laws regulating merchant shipping or civil aviation apply;
See Labour Act, Cap L1, Laws of the Federation of Nigeria 2004, s. 91(1), definition of worker; official NIPC resource PDF, retrieved 28 September 2026.
How does PAYE tax work for a Nigerian employee under the 2025 tax Acts?
The Nigeria Tax Administration Act 2025 requires an employer to deduct an employee's income tax from each salary payment, and the Joint Revenue Board's Personal Income Tax Guidelines 2026 require that tax to be remitted by the 10th day of the following month. For a resident individual, the relevant tax authority is ordinarily the State or Federal Capital Territory authority where the employee resides.
Section 51(7) requires the deductions across a year to add up to the employee's tax for that year, so payroll recalculates when pay changes. Separately, section 107(1) of the Nigeria Tax Administration Act makes a person who has not remitted deducted tax by the 21st day of the following month liable for the unremitted amount, a 10% annual administrative penalty and interest at the Central Bank monetary policy rate. A payroll that remits by the 10th meets both dates. Every employer also files an annual return of all employees' emoluments by 31 January.
The Nigeria Tax Act's Fourth Schedule sets the individual rates: the first ₦800,000 of taxable income at 0%, then bands of 15%, 18%, 21% and 23%, and 25% above ₦50 million. Section 58 excludes an individual earning the national minimum wage from those rates, and section 162(1)(t) exempts income from an employment paying the national minimum wage or less. Pension, National Housing Fund and health-insurance contributions are among the eligible deductions in computing taxable income.
Olaniwun Ajayi's July 2025 guidance, published before the 2026 guidelines, describes a monthly deduction and 21st-day remittance cycle. Udo Udoma & Belo-Osagie give the Lagos example of remitting to the Lagos State Inland Revenue Service, and Aluko & Oyebode report that both Acts took effect on 1 January 2026.
The tax-Act cards quote the gazetted copy of each Act published on the National Assembly website.
Sources for this answer
Section 51(6) requires an employer to deduct an employee's income tax from emoluments, and section 51(7) requires the year's deductions to equal the tax chargeable.
(6) Income tax chargeable on an employee whether or not the assessment has been made, shall be deducted from any emolument payable, or from any payment made on account of the emolument, by the employer to the employee. (7) In arriving at the amount of income tax to be deducted from any payment of or on account of the emolument to an employee, the employer shall ensure that the aggregate amount of all the deductions made during a year of assessment shall equal the income tax chargeable on the employee in respect of its emoluments for that year.
See Nigeria Tax Administration Act, 2025 (Act No. 5), s. 51(6)–(7); Official Gazette No. 117, 26 June 2025, National Assembly copy; retrieved 8 October 2026.
Section 107(1) makes a person who deducts tax and fails to remit it by the 21st day of the following month liable for the amount, a 10% annual administrative penalty and interest.
107.—(1) A person, that deducts, collects or withholds any tax under this Act, and fails to remit the amount deducted, collected or withheld by the 21st day of the month immediately succeeding the month in which the amount was deducted, collected or withheld, is liable to pay — Failure to remit tax deducted at source or self-account (a) the amount deducted, collected or withheld but not remitted ; (b) an administrative penalty of 10% per annum of the tax deducted, collected or withheld but not remitted ; and (c) interest at the prevailing Central Bank of Nigeria monetary policy rate.
See Nigeria Tax Administration Act, 2025 (Act No. 5), s. 107(1); Official Gazette No. 117, 26 June 2025, National Assembly copy; retrieved 8 October 2026. The quote preserves the printed marginal note, which the text layer places inside the subsection.
The Joint Revenue Board's 2026 guidelines require PAYE deducted at source to be remitted to the relevant tax authority by the 10th day of the following month.
12.2. Pay-As-You-Earn amount deducted at source shall be remitted to the relevant tax authority not later than the 10th day of the month following the deduction.
See Joint Revenue Board of Nigeria, Personal Income Tax Guidelines, 2026, para. 12.2, 24 February 2026, retrieved 13 October 2026.
Section 14 requires an employer to file an annual return of all employees' emoluments and tax deducted by 31 January.
14.—(1) An employer shall file a return with the relevant tax authority for all emoluments paid to its employees, not later than 31st January of each year in respect of all employees in its employment in the preceding year. (2) The returns shall disclose for each employee gross emoluments, including allowances and benefits in kind, total deductions, net emoluments and tax deducted.
See Nigeria Tax Administration Act, 2025 (Act No. 5), s. 14(1)–(2); Official Gazette No. 117, 26 June 2025, National Assembly copy; retrieved 8 October 2026.
The Twelfth Schedule deems an individual in Nigerian employment resident, for the year, in the territory of the individual's place or principal place of residence.
2. An individual who holds a Nigerian employment on 1st January in a year of assessment, or who first becomes liable to income tax in Nigeria for that year by reason of his entering that employment during that year, shall be deemed to be resident for that year in the territory in which he has a place or principal place of residence on that day or, as the case may be, on the day on which he enters upon the full duties of that employment in Nigeria:
See Nigeria Tax Act, 2025 (Act No. 7), Twelfth Schedule, para. 2; Official Gazette No. 117, 26 June 2025, National Assembly copy; commencement 1 January 2026; retrieved 8 October 2026.
Section 3(2) makes the State or Federal Capital Territory tax authority responsible for administering taxes on resident individuals, subject to the Nigeria Revenue Service's exclusive heads in section 3(1)(a)(ii)–(iv).
(2) The relevant tax authority in a State or the Federal Capital Territory, shall under to the First Schedule to this Act, be responsible for — (a) the administration of taxes for resident individuals in respect of — (i) imposition of tax on income, profits or gains, (ii) ascertainment of profits and income, (iii) ascertainment of assessable profits and income, (iv) ascertainment of total income, (v) ascertainment of chargeable gains, (vi) rates of tax, subject to subsection (1) (a) (ii) - (iv) of this section.
See Nigeria Tax Administration Act, 2025 (Act No. 5), s. 3(2)(a); Official Gazette No. 117, 26 June 2025, National Assembly copy; retrieved 8 October 2026. Section 3(1)(a)(ii)–(iv) reserves armed forces, police, foreign service and non-resident cases to the Nigeria Revenue Service.
Udo Udoma & Belo-Osagie advise that PAYE goes to the revenue service of the employee's State of residence, such as the Lagos State Inland Revenue Service for a Lagos resident.
If your employee is resident in Lagos State, the employee's income tax payment will be made to the Lagos State Inland Revenue Service.
See Emem Okoko, Udo Udoma & Belo-Osagie (u-law), 3 key things to know as a start-up looking to recruit employees, PDF created February 2021 (before the 2025 tax Acts), retrieved 8 October 2026.
Section 58 applies the Fourth Schedule rates to individuals other than those earning the national minimum wage.
58. The income tax payable on the chargeable income of an individual, other than an individual earning the Minimum Wage in line with the Minimum Wage Act, in respect of each year of assessment, shall be as specified in the Fourth Schedule to this Act.
See Nigeria Tax Act, 2025 (Act No. 7), s. 58; Official Gazette No. 117, 26 June 2025, National Assembly copy; commencement 1 January 2026; retrieved 13 October 2026.
Section 162(1)(t) exempts from income tax a person's income from an employment that pays gross income of the national minimum wage or less.
(q) dividend received from investments in wholly export-oriented businesses ; (r) profits of a company engaged in sporting activities ; (s) dividend, interest, rent or royalty derived from outside Nigeria and brought into Nigeria through approved channels ; (t) income of a person from an employment where such person earns gross income of national minimum wage or less from such employment ; (u) wages and salaries of military officers.
See Nigeria Tax Act, 2025 (Act No. 7), s. 162(1)(q)–(u), listing exemptions from tax under Chapter Two; Official Gazette No. 117, 26 June 2025, National Assembly copy; commencement 1 January 2026; retrieved 13 October 2026.
The Fourth Schedule taxes an individual's first ₦800,000 of taxable income at 0% and higher bands at 15% to 25%.
After the relief allowance and exemptions had been granted in accordance with subsection of (1) of section 30 of this Act, the taxable income ascertained shall be taxed at the following rates – (a) First N800,000 at 0% ; (b) Next N2,200,000 at 15% ; (c) Next N9,000,000 at 18% ; (d) Next N13,000,000 at 21% ; (e) Next N25,000,000 at 23% ; and (f) Above N50,000,000 at 25%.
See Nigeria Tax Act, 2025 (Act No. 7), Fourth Schedule; Official Gazette No. 117, 26 June 2025, National Assembly copy; commencement 1 January 2026; retrieved 8 October 2026.
Section 30(2)(a) lists National Housing Fund, health-insurance and Pension Reform Act contributions among an individual's eligible deductions.
(2) For the purposes of this section — (a) "eligible deductions" include payments made by the individual in a year of assessment in respect of — (i) the individual's contributions under the National Housing Fund, (ii) the individual's contributions under the National Health Insurance Scheme, (iii) the individual's contributions under the Pension Reform Act, (iv) interest on loans for developing an owner-occupied residential house,
See Nigeria Tax Act, 2025 (Act No. 7), s. 30(2)(a)(i)–(iv); Official Gazette No. 117, 26 June 2025, National Assembly copy; commencement 1 January 2026; retrieved 8 October 2026.
Olaniwun Ajayi describes the employer duty to deduct tax from salary and remit it by the 21st day of the following month under the 2025 Acts.
Employers must deduct income tax when they pay salaries, and remit it by the 21st day of the following month.
See Olaniwun Ajayi LP (collective byline), Employment Income Taxation under the Tax Reform Acts: A Compliance Guide for Employees and Employers, 16 July 2025, retrieved 8 October 2026.
Aluko & Oyebode report that the Nigeria Tax Act and the Nigeria Tax Administration Act took effect on 1 January 2026.
The NTA and NTAA took effect on 1 January 2026 (the “Commencement Date”) while the NRSEA and JRBEA became effective on 26 June 2025.
See Agbada Agbada, Godstime Ejide and Innocent Uzoma, Aluko & Oyebode, Overview of The General Transition Guidelines for The New Tax Acts 2025, 13 July 2026, retrieved 8 October 2026.
Which pension and social-insurance contributions apply to a Nigerian employee?
A private employer with three or more employees falls within Nigeria's Contributory Pension Scheme, according to the National Pension Commission's reading of section 2 of the Pension Reform Act 2014. Under the shared arrangement, employees under the scheme contribute at least 8% of monthly emoluments and the employer at least 10%, and the employer remits both within seven working days after paying salaries. Section 4(4)(b) of the Act lets the employer instead bear the whole contribution, which must then be at least 20% of the employee's monthly emoluments. Monthly emoluments are as the contract defines them but not less than basic salary plus housing and transport allowances.
Udo Udoma & Belo-Osagie read the Act the same way and add that an employer remits for an employee without an account into a nominal account at an administrator the employer chooses. The Commission's FAQ puts the employer-only floor at 18% rather than the 20% in section 4(4)(b), and the Act's figure governs. The Commission's group life guidelines quote section 4(5) as requiring an employer to maintain group life insurance of at least three times each employee's annual total emolument, and describe that cover as mandatory for employees under the scheme. The guidelines treat annual total emolument as gross emolument and require the employer to begin written renewal negotiations two months before the cover expires. The Commission's FAQ states that foreigners working in Nigeria and employees on temporary, contract or tenured appointments are not required to join the scheme but may join voluntarily. Each covered employee opens a retirement savings account with a pension fund administrator of the employee's choice. If an employee does not open an account within six months, the employer asks an administrator to open a temporary account for the remittances.
The Employees' Compensation Act 2010 set a minimum monthly employer contribution of 1.0% of total monthly payroll to the Employees' Compensation Fund for the Act's first two years. After that period, section 33(2) leaves contribution amounts and assessment rates to the Fund's Board, and section 34 has the Board assess employers. Udo Udoma & Belo-Osagie's start-up guidance also lists Industrial Training Fund contributions for employers with five or more employees or ₦50 million turnover. This guide has not verified that threshold, which other practitioners state differently, or the National Housing Fund rules.
Pension coverage remains narrow in practice. The Commission reported 11,183,475 retirement savings accounts at the end of the first quarter of 2026, which it put at about 12.1% of an estimated 92 million labour force. The National Bureau of Statistics reported that 16.0% of employed people were in wage employment in the first quarter of 2024. These figures describe the workforce, not the terms a startup should offer.
Sources for this answer
The National Pension Commission states that section 2 of the Pension Reform Act 2014 mandates participation by employees of private organizations with three or more employees.
1.2.2 Section 2 of the PRA 2014 further mandates participation by employees in private sector organizations with three (3) or more employees and self-employed individuals.
See National Pension Commission, Revised Guidelines for Retirement Savings Account Registration, para. 1.2.2, retrieved 8 October 2026.
The National Pension Commission states that covered employees open retirement savings accounts in their own names with administrators of their choice.
1.2.4 The category of individuals referred to in 1.2.1 and 1.2.2 above shall open Retirement Savings Accounts (RSAs), in their names, with PFAs of their choice.
See National Pension Commission, Revised Guidelines for Retirement Savings Account Registration, para. 1.2.4, retrieved 8 October 2026.
The National Pension Commission states that the employer deducts and remits contributions within seven working days of paying salaries, at a minimum of 18% of monthly emoluments split 10% employer and 8% employee.
The employer is obliged by law to deduct and remit pension contributions into the employee's RSA not later than 7 working days from the date salaries are paid. 15. What are the rates of contributions under the CPS? 31 The minimum rate of contribution is 18% of the employee's monthly emoluments, where 10% is contributed by the employer and 8% is contributed by the employee.
See National Pension Commission, Frequently Asked Questions (2023), questions 14–15, retrieved 8 October 2026. The quote preserves a page number that the text layer places inside it.
Section 4(4)(b) lets an employer elect to bear the whole contribution, at not less than 20% of the employee's monthly emoluments.
(4) Notwithstanding any of the provisions of this Act, an employer may agree - (a) on the payment of additional benefits to the employee upon retirement; or (b) elect to bear the full responsibility of the Scheme provided that in such a case, the employer's contribution shall not be less than 20 percent of the monthly emoluments of the employee.
See Pension Reform Act, 2014, s. 4(4); National Pension Commission copy, retrieved 13 October 2026.
The National Pension Commission's FAQ states that an employer bearing the whole contribution must pay at least 18% of monthly emoluments.
However, the employer may decide to bear the full responsibility of the contribution provided it is not less than 18% of the monthly emolument of the employee.
See National Pension Commission, Frequently Asked Questions (2023), question 15, retrieved 13 October 2026.
The National Pension Commission states that foreigners working in Nigeria are not mandated to participate in the Contributory Pension Scheme but may participate voluntarily.
Foreigners working in Nigeria are not mandated by law to participate in the CPS. However, such foreigners may voluntarily participate in the Scheme.
See National Pension Commission, Frequently Asked Questions (2023), Part 1, question 15, retrieved 13 October 2026.
The National Pension Commission states that employees on temporary, contract or tenured appointments may voluntarily join the Contributory Pension Scheme.
Employees on temporary, contract or tenured appointments may voluntarily join the CPS.
See National Pension Commission, Frequently Asked Questions (2023), Part 1, question 18, retrieved 13 October 2026.
The National Pension Commission states that monthly emoluments are as defined in the employment contract but not less than basic salary plus housing and transport allowances.
The constituent of monthly emoluments is as may be defined in the employee's contract of employment, but should not be less than the total sum of basic salary, housing and transport allowances.
See National Pension Commission, Frequently Asked Questions (2023), question 7, retrieved 8 October 2026.
The National Pension Commission quotes section 4(5) of the Pension Reform Act 2014 as requiring every employer to maintain group life insurance of at least three times each employee's annual total emolument.
Section 4(5) of the PRA 2014, provides that "every employer shall maintain a Group Life Insurance Policy in favour of each employee for a minimum of three times the annual total emolument of the employee and premium shall be paid not later than the date of commencement of the cover".
See National Pension Commission, Revised Guidelines on Group Life Insurance Policy (2020), para. 1.2.1, retrieved 8 October 2026.
The National Pension Commission treats annual total emolument for group life cover as the employee's gross emolument.
Annual Total Emolument, for the purpose of Group Life Insurance Policy under the PRA 2014, shall be the gross emolument of an employee.
See National Pension Commission, Revised Guidelines on Group Life Insurance Policy (2020), para. 4.7, retrieved 13 October 2026.
The National Pension Commission requires the employer to begin written renewal negotiations two months before group life cover expires and to conclude them before it ends.
The employer shall be required to commence renewal negotiations in writing two (2) months before the expiration of the subsisting insurance cover. The employer shall conclude negotiation for renewal before the last day of the subsisting cover.
See National Pension Commission, Revised Guidelines on Group Life Insurance Policy (2020), para. 5.6, retrieved 13 October 2026.
The National Pension Commission describes group life cover as mandatory for all employees under the Contributory Pension Scheme while they remain in employment.
4.5 Insurance cover is mandatory for all employees under the CPS as long as they are in employment.
See National Pension Commission, Revised Guidelines on Group Life Insurance Policy (2020), para. 4.5, retrieved 8 October 2026.
The National Pension Commission states that an employer requests a temporary retirement savings account for an employee who has not opened one within six months, citing section 11(5) of the Act.
1.2.5 Where an employee fails to open an RSA within a period of 6 months after assumption of duty, his employer shall, subject to guidelines issued by the Commission, request a PFA to open a temporary RSA for such employee for the remittance of his/her pension contributions, as stipulated in Section 11 (5) of the PRA 2014.
See National Pension Commission, Revised Guidelines for Retirement Savings Account Registration, para. 1.2.5, retrieved 8 October 2026.
Section 33(1) set a minimum monthly employer contribution of 1.0% of total monthly payroll for the Act's first two years.
(1) Every employer shall, within the first 2 years of the commencement of this Act, make a minimum monthly contribution of 1.0 per cent of the total monthly payroll into the Fund.
See Employees' Compensation Act, 2010, s. 33(1); copy hosted by the Policy and Legal Advocacy Centre, retrieved 8 October 2026.
Section 33(2) has the Board prescribe contribution amounts and assessment rates by regulation, and section 34(1) has the Board assess employers.
(2) Without prejudice to the provisions of sub-section (l) of this section, the Board shall, from time to time, make regulations prescribing(a) the categorization of risk factors of each class or sub-class of industry, sector or workplace and the amount of contributions to be made into the Fund; and (b) for different assessment rates applicable to each class and subclass of industry, sector or workplace mentioned under paragraph (a) of this sub-section. 34. (1) The Board shall assess employers for such sums in such manner, form and procedure as the Board may, from time to time, determine for the due administration of this Act.
See Employees' Compensation Act, 2010, ss. 33(2), 34(1); copy hosted by the Policy and Legal Advocacy Centre, retrieved 8 October 2026.
Udo Udoma & Belo-Osagie read the Pension Reform Act 2014 as requiring employers with three or more employees to remit contributions, and to use a nominal account for employees without one.
The provisions of the Pension Reform Act 2014 (“PRA”) require employers with three or more employees to compulsorily remit pension contributions for their employees into their selected RSAs held with PFAs. With respect to employees who are yet to open RSAs, the PRA further mandates employers to remit their pension contributions into nominal RSAs with any PFA chosen at the employer’s discretion.
See Udo Udoma & Belo-Osagie (collective byline), Client Update: National Pension Commission directive affecting employers, September 2023, retrieved 8 October 2026.
Udo Udoma & Belo-Osagie list Industrial Training Fund contributions for employers with five or more employees or ₦50 million turnover among a start-up employer’s payroll obligations.
Industrial Training Fund (“ITF”) contributions: The ITF is a government agency that provides programmes and services such as vocational and apprentice training, research and consultancy services to stimulate human performance and improve productivity. The law in respect of these contributions provides that every employer who has 5 or more employees, or an annual turnover of N50 million or more, has to make these contributions.
See Emem Okoko, Udo Udoma & Belo-Osagie (u-law), 3 key things to know as a start-up looking to recruit employees, PDF created February 2021, retrieved 8 October 2026.
The National Pension Commission reported 11,183,475 retirement savings accounts at the end of Q1 2026, about 12.1% of an estimated 92 million labour force.
Cumulative RSA registrations rose from 11,040,227 at the end of Q4 2025 to 11,183,475 at the end of Q1 2026, on the back of 143,248 new accounts opened during the quarter. The quarterly cadence is materially stronger than the 114,864 opened in Q4, and reflects both improved digital onboarding and sustained public sensitisation. Active membership now corresponds to approximately 12.1% of Nigeria’s estimated 92 million labour force, leaving substantial headroom for growth, particularly in the informal sector.
See National Pension Commission, Q1 2026 Quarterly Industry Report (amended), section B.1, retrieved 8 October 2026.
The National Bureau of Statistics reported that 16.0% of employed people were in wage employment in Q1 2024.
Survey findings reveal an increase in the share of employed persons primarily engaged as employees between Q1 2024 (16.0%) and Q3 2023(12.7%).
See National Bureau of Statistics, Nigeria Labour Force Survey Q1 2024, Status in Employment, retrieved 8 October 2026.
What does Nigeria's data protection law require for employee records?
The Nigeria Data Protection Act 2023 requires an employer collecting personal data directly from a candidate or employee to tell that person, before collection, who the controller is, the lawful basis and purposes, the recipients, the retention period and the employee's rights. Sending that data to a foreign parent company needs a transfer basis under section 41(1) that the employer records under section 41(2).
Section 27(1) lists the notice contents, including the right to complain to the Nigeria Data Protection Commission and any automated decision-making. Because the duty applies before the first direct collection, a privacy notice given before or with the first request for candidate information is a practical safeguard; it names the lawful basis for each purpose.
For a startup whose payroll, HR system or management sits abroad, section 41(1) permits a transfer only where the recipient is subject to adequate protection through law, binding corporate rules, contractual clauses, a code of conduct or certification, or a section 43 condition applies; section 41(2) requires the controller to record the basis and the adequacy assessment. An intragroup data agreement between the Nigerian employer and the parent is one way to supply that record.
Aluko & Oyebode note that, without adequate protection, a transfer can proceed only under a section 43 condition, and Olaniwun Ajayi reads the Commission's 2025 General Application and Implementation Directive as requiring Commission approval of a transfer instrument before an organisation relies on it.
Health information from a pre-employment medical examination is sensitive personal data, because the Act's definition includes health status, and section 30(1) allows its processing only on a listed basis such as consent or an employment-law obligation. This guide does not set out the Commission's registration thresholds or the rest of the 2025 Directive.
Sources for this answer
Section 27(1) requires a data controller, before collecting personal data directly from a data subject, to give the listed information, including the lawful basis, purposes, recipients, retention period and rights.
27.—(1) Before a data controller collects personal data directly from a data subject, the data controller shall inform the data subject of the — (a) identity, residence or place of business of, and means of communication with the data controller and its representatives, where necessary ; (b) specific lawful basis of processing under section 25(1) or 30(1) of this Act, and the purposes of the processing for which the personal data are intended ; (c) recipients or categories of recipients of the personal data, if any ; (d) existence of the rights of the data subject under Part VI ; (e) retention period for the personal data ; (f ) right to lodge a complaint with the Commission in accordance with section 46 (1) of this Act ; and (g) existence of automated decision-making, including profiling, the significance and envisaged consequences of such processing for the data subject, and the right to object to and challenge such processing.
See Nigeria Data Protection Act, 2023 (Act No. 37), s. 27(1); Official Gazette No. 119, 1 July 2023, copy hosted by the Nigerian Communications Commission, retrieved 8 October 2026.
Section 41(1) permits a transfer of personal data out of Nigeria only where the recipient is subject to adequate protection through listed mechanisms or a section 43 condition applies.
41.—(1) A data controller or data processor shall not transfer or permit personal data to be transferred from Nigeria to another country, unless — (a) the recipient of the personal data is subject to a law, binding corporate rules, contractual clauses, code of conduct, or certification mechanism that affords an adequate level of protection with respect to the personal data in accordance with this Act ; or (b) one of the conditions set out in section 43 of this Act applies.
See Nigeria Data Protection Act, 2023 (Act No. 37), s. 41(1); Official Gazette No. 119, 1 July 2023, copy hosted by the Nigerian Communications Commission, retrieved 8 October 2026.
Section 41(2) requires a data controller to record the basis for a cross-border transfer and the adequacy of protection.
(2) A data controller or data processor shall record the basis for transfer of personal data to another country under subsection (1) and the adequacy of protection under section 42 of this Act.
See Nigeria Data Protection Act, 2023 (Act No. 37), s. 41(2); Official Gazette No. 119, 1 July 2023, copy hosted by the Nigerian Communications Commission, retrieved 8 October 2026.
The Act defines sensitive personal data to include health status, and defines social security laws to include the Employees' Compensation and Pension Reform Acts.
“sensitive personal data” means personal data relating to an individual’s — (a) genetic and biometric data, for the purpose of uniquely identifying a natural person, (b) race or ethnic origin, (c) religious or similar beliefs, such as those reflecting conscience or philosophy, (d) health status, (e) sex life, (f ) political opinions or affiliations, (g) trade union memberships, or (h) other information prescribed by the Commission, as sensitive personal data under section 30 (2), and “social security laws” means “the Employee Compensation Act, Pension Reform Act, National Health Insurance Authority Act, National Housing Fund Act, Nigeria Social Insurance Trust Fund Act, Industrial Trust Fund Act or any other similar law.
See Nigeria Data Protection Act, 2023 (Act No. 37), s. 65 (interpretation); Official Gazette No. 119, 1 July 2023, copy hosted by the Nigerian Communications Commission, retrieved 8 October 2026.
Section 30(1) bars processing sensitive personal data unless a listed basis applies, including consent or employment and social security law obligations.
30.—(1) Without prejudice to the principles set out in this Act, a data controller or data processor shall not process, or permit a data processor to process on its behalf, sensitive personal data, unless the — (a) data subject has given and not withdrawn consent to the processing for the specific purpose or purposes for which it will be processed ; (b) processing is necessary for the purposes of performing the obligations of the data controller or exercising rights of the data subject under employment or social security laws or any other similar laws ;
See Nigeria Data Protection Act, 2023 (Act No. 37), s. 30(1)(a)–(b); Official Gazette No. 119, 1 July 2023, copy hosted by the Nigerian Communications Commission, retrieved 8 October 2026.
Aluko & Oyebode explain that, without adequate protection, a transfer abroad can proceed only under a section 43 condition.
However, where there is no adequate level of protection, cross-border transfers can only be done when one of the conditions set out in section 43 of the NDPA is met.
See Sumbo Akintola, Aluko & Oyebode, Privacy Please – Cross Border Transfer Of Personal Data, 14 July 2023, retrieved 8 October 2026.
Olaniwun Ajayi reads the 2025 General Application and Implementation Directive as requiring Commission approval of a transfer instrument before reliance.
Crucially, the NDPC must approve the CBDTI before anyone relies on it.
See Olaniwun Ajayi LP (collective byline), Navigating Cross Border Data Transfers – Key Insights Under Nigeria’s Data Protection Laws, 27 May 2025, retrieved 8 October 2026.
Does a Nigerian startup own the code its employees write?
A Nigerian startup cannot rely on a statutory employer-ownership rule for its employees' code, because the Copyright Act 2022 vests copyright initially in the author unless an agreement provides otherwise. The Act's employer-ownership rule in section 28(2) covers only government and specified public bodies, and an assignment of copyright has no effect unless it is in writing.
The Act's definition of literary work includes computer programmes, so source code written by an employee falls under the section 28 ownership rule. For a private startup, section 28(1) makes an agreement the mechanism that gives the company ownership, and section 30(3) requires an assignment to be in writing. A written assignment of copyright in work made in the course of employment is the core drafting safeguard; confidentiality and cooperation terms are practical additions rather than statutory requirements.
Templars and Aluko & Oyebode read the ownership rule the same way: copyright vests initially in the author unless an agreement provides otherwise. Section 30(10) permits an assignment of future works but not of all future works of an author. Templars read that limit as requiring some quantification by period, identification or number. Whether a clause limited to works made in the course of the employment is quantified enough has not been tested in the sources reviewed, so the clause benefits from a defined period and subject matter.
A U.S. parent that needs the code in its own name can take a further written assignment from the Nigerian employer once that employer holds the rights; the parent's title depends on each assignment in the chain being effective. This guide does not address patents or industrial designs.
Sources for this answer
Section 28(1) vests copyright initially in the author except as otherwise provided in an agreement.
28. —(1) Except as otherwise provided in an agreement, copyright conferred by this Act, shall initially vest in the author.
See Copyright Act, 2022 (Act No. 8 of 2023), s. 28(1); Official Gazette No. 56, 27 March 2023, Nigerian Copyright Commission copy, retrieved 8 October 2026.
Section 28(2) vests copyright in government and specified public bodies for works made under a contract for services or in the course of employment by them, absent contrary agreement.
(2) Where a person in the absence of an agreement to the contrary, creates a work under a contract for services, or in the course of employment by a government, a ministry, department or agency of a government or a prescribed international or inter-governmental organisation, the copyright in that work shall vest in that government, ministry, department, agency, prescribed international or inter-governmental organisation.
See Copyright Act, 2022 (Act No. 8 of 2023), s. 28(2); Official Gazette No. 56, 27 March 2023, Nigerian Copyright Commission copy, retrieved 8 October 2026.
Section 30(3) gives no effect to an assignment of copyright or an exclusive licence unless it is in writing.
(3) An assignment of copyright or an exclusive licence to do an act, the doing of which is controlled by copyright, shall have no effect unless it is in writing.
See Copyright Act, 2022 (Act No. 8 of 2023), s. 30(3); Official Gazette No. 56, 27 March 2023, Nigerian Copyright Commission copy, retrieved 8 October 2026.
Section 30(1) makes copyright movable property transferable by assignment, testamentary disposition or operation of law.
30. —(1) For the purpose of Chapter 4 of the Constitution of the Federal Republic of Nigeria 1999, copyright shall be deemed to be movable property and shall be transferable by way of assignment, testamentary disposition or operation of law.
See Copyright Act, 2022 (Act No. 8 of 2023), s. 30(1); Official Gazette No. 56, 27 March 2023, Nigerian Copyright Commission copy, retrieved 8 October 2026.
The Act's definition of literary work includes computer programmes.
―literary work‖ includes, irrespective of literary quality, any of the following works or similar works — (a) novels, stories and poetical works ; Nigerian Copyright Commission Copyright Act, 2022 2023 No. 8 (b) plays, stage directions, audiovisual work scenarios and broadcasting scripts ; (c) choreographic works ; (d) computer programmes; (e) textbooks, treatises, histories, biographies, essays and articles ;
See Copyright Act, 2022 (Act No. 8 of 2023), interpretation section, definition of literary work; Official Gazette No. 56, 27 March 2023, Nigerian Copyright Commission copy, retrieved 8 October 2026. The quote preserves the page running header that the text layer places inside the definition.
Templars read the Copyright Act 2022 as vesting copyright initially in the author unless an agreement provides otherwise.
Copyright generally always vests initially in the author of the work concerned, except as otherwise provided in any agreement.
See Templars, A New Dawn for Copyright Protection in Nigeria, 1 June 2023, retrieved 8 October 2026.
Templars read the 2022 Act as barring a grant of all future works, so a future-works grant needs some quantification by period, identification or number.
However, the new Act goes further to limit such grants by preventing the inclusion of all future works of an author, which means there must be a certain level of quantification to these future or uncopyrighted works i.e. by period, identification or number.
See Templars, A New Dawn for Copyright Protection in Nigeria, 1 June 2023, retrieved 8 October 2026.
Aluko & Oyebode state that copyright in work made in the course of employment vests initially in the author unless the employment contract provides otherwise.
Copyright vests initially in the author unless the contract of employment stipulates otherwise.
See Aluko & Oyebode (no individual byline), Role of Employment Contracts in Assignment of Copyright, 19 February 2021, written under the earlier Copyright Act, retrieved 8 October 2026.
Section 30(10) permits an assignment of a future work but bars a transfer of the rights in all future works of an author.
(10) An assignment, licence or testamentary disposition, may be granted or made in respect of a future work or an existing work in which copyright does not subsist, provided that it shall not be permitted to transfer the rights in all future works of an author.
See Copyright Act, 2022 (Act No. 8 of 2023), s. 30(10); Official Gazette No. 56, 27 March 2023, Nigerian Copyright Commission copy, retrieved 8 October 2026.
Is a medical examination required when hiring in Nigeria?
For a worker covered by Nigeria's Labour Act, section 8(1) requires examination by a registered medical practitioner at the employer's expense, subject to any applicable State Authority exemption order under section 8(2). That duty does not permit HIV screening as a condition of employment except in the narrow case section 9 of the HIV and AIDS (Anti-Discrimination) Act 2014 allows.
Section 8(2) permits State Authority orders exempting specified agricultural or near-home employment categories; it does not make every such hire automatically exempt. The actual role, the State, any applicable order and the examination arrangements matter before the start date.
Section 9(1) of the HIV Act permits an HIV-test precondition only where two competent medical authorities, working independently, certify to the Court that failure to test creates a clear and present danger of transmission to others. Section 9(4) requires informed and full consent under national confidentiality and counselling guidelines, and section 9(5) preserves medical testing for fitness for work under existing law. The HIV Act reaches employers and employees in the public and private sectors, regardless of the Labour Act's worker exclusions.
Sources for this answer
Section 8(1) requires examination by a registered medical practitioner at employer expense; exemptions are addressed separately in section 8(2).
(1) Every worker who enters into a contract shall be medically examined by a registered medical practitioner at the expense of the employer.
See Labour Act, Cap L1, Laws of the Federation of Nigeria 2004, s. 8(1); official NIPC resource PDF, retrieved 28 September 2026.
Section 8(2) permits State Authority exemption orders for the specified categories and qualifications; category membership alone is not an exemption.
(2) The State Authority may by order exempt from the requirement of medical examination workers entering into contracts ror‐ (a) employment in agricultural undertakings not employing more than a limited number of workers (the limit being specified in the order); or (b) employment in the vicinity of the workers' homes‐ (i) in agricultural work; or (ii) in non‐agricultural work which the State Authority is satisfied is not of a dangerous character or likely to be injurious to the health of the workers.
See Labour Act, Cap L1, Laws of the Federation of Nigeria 2004, s. 8(2); official NIPC resource PDF, retrieved 28 September 2026.
Section 9 restricts HIV testing as an employment precondition, provides the Court and independent medical-authority exception, requires informed and full consent, and preserves fitness-for-work medical testing under existing law.
9.- (1) No employer, institution, body or individual shall require an HIV test as a precondition to an offer of employment, access to public or private services or opportunities, except where it is shown, on the certification of two competent medical authorities (working independently) to the Court, that failure to take such a test constitutes a clear and present danger of HIV transmission to others. (2) No educational institution shall require HIV testing as part of its routine medical testing requirements for admission or accreditation of learners. (3) For the purpose of subsection (1) of this section, the compilation of the list of competent medical authorities shall be the responsibility of the Ministry of Health. (4) HIV testing under this section shall be carried out with the informed and full consent of the person concerned, in accordance with national guidelines on confidentiality and counseling. (5) Nothing in subsection (1) of this section shall prevent the medical testing of persons for fitness for work and any other responsibility as a precondition for an offer of employment and any other responsibility as provided in any existing law.
See HIV and AIDS (Anti-Discrimination) Act 2014, Act No. 7, s. 9(1)–(5), Official Gazette No. 125, 28 November 2014, printed A128 (PDF p. 7); commencement 27 November 2014; Gazette facsimile hosted by ILO, retrieved 28 September 2026.
Section 2(2) applies the Act to employers and employees in both public and private sectors; Labour Act worker exclusions do not determine its scope.
(2) This Act applies to all employers of labour and employees in the public and private sectors including the Nigeria Armed Forces, Nigeria Police, State Security Services, other Para-Military Organizations, Schools, Hospitals and places of worship.
See HIV and AIDS (Anti-Discrimination) Act 2014, Act No. 7, s. 2(2), Official Gazette No. 125, 28 November 2014, printed A125 (PDF p. 4); commencement 27 November 2014; Gazette facsimile hosted by ILO, retrieved 28 September 2026.
What notice and redundancy rules apply when ending a Nigerian employment?
For workers covered by the Labour Act, section 11(2) sets notice to end employment at one day for up to three months' service, one week for more than three months but under two years, two weeks for two years but under five, and one month for five years or more. A redundancy of covered workers also triggers section 20's duties to inform worker representatives, apply last in, first out within the category of workers affected, subject to merit, and try to negotiate redundancy pay for workers not covered by ministerial redundancy-allowance regulations.
| Contract has continued for | Section 11(2) notice |
|---|---|
| Three months or less | One day |
| More than three months but less than two years | One week |
| Two years but less than five years | Two weeks |
| Five years or more | One month |
Notice of one week or more must be in writing under section 11(3). Section 11(2) specifies these notice periods for covered contracts. Section 11 also excludes the day notice is given, preserves termination without notice for qualifying conduct, allows waiver of notice or payment in lieu, and requires wages payable in money to be paid by the end of the notice period, so the table is not a complete dismissal rule.
Section 20 defines redundancy as an involuntary and permanent loss of employment caused by an excess of manpower. Section 20 itself fixes no redundancy payment: it requires best endeavours to negotiate payments for discharged workers not protected by regulations under section 20(2), and leaves any compulsory allowances to those regulations.
AELEX notes that the section 20 procedure protects only employees within the Labour Act's worker definition. For other employees, practitioners describe a developing body of case law: Templars treat termination without reasons as still valid where the contract provides for it, while G. Elias describe employers ending a contract without notice as choosing between common-law pay in lieu of notice and international-best-practice compensation based on the contract's duration.
Sources for this answer
Section 11(2) gives notice periods by service length and section 11(3) requires writing for notice of one week or more.
(2) The notice to be given for the purposes of subsection (1) of this section shall be‐ (a) one day, where the contract has continued for a period of three months or less; (b) one week, where the contract had continued for more than three months but less than two years; (c) two weeks, where the contract has continued for a period of two years but less than five years; and (d) one month, where the contract had continued for five years or more. (3) Any notice for a period of one week or more shall be in writing.
See Labour Act, Cap L1, Laws of the Federation of Nigeria 2004, s. 11(2)–(3); official NIPC resource PDF, retrieved 28 September 2026.
Section 11(4)–(7) excludes the notice day, preserves termination without notice for qualifying conduct, permits waiver of notice or payment in lieu, and requires money wages to be paid by the end of notice.
(4) The periods of notice specified in subsection (2) of this section exclude the day on which notice is given. (5) Nothing in this section affects any right of either party to a contract to treat the contract as terminable without notice by reason of such conduct by the other party as would have enabled him so to treat it before the making of this Act. (6) Nothing in this section shall prevent either party to a contract from waiving his right to notice on any occasion, or from accepting a payment in lieu of notice. (7) All wages payable in money shall be paid on or before the expiry of any period of notice.
See Labour Act, Cap L1, Laws of the Federation of Nigeria 2004, s. 11(4)–(7); official NIPC resource PDF, retrieved 8 October 2026.
Section 20 requires an employer in a redundancy to inform the union or worker representatives, apply last in, first out subject to merit, and use best endeavours to negotiate redundancy payments, and defines redundancy.
(1) In the event of redundancy‐ (a) the employer shall inform the trade union or workers' representative concerned of the reasons for and the extent of the anticipated redundancy; (b) the principle of "last in, first out" shall be adopted in the discharge of the particular category of workers affected, subject to all factors of relative merit, including skill, ability and reliability; and (c) the employer shall use his best endeavours to negotiate redundancy payments to any discharged workers who are not protected by regulations made under subsection (2) of this section. (2) The Minister may make regulations providing, generally or in particular cases, for the compulsory payment of redundancy allowances on the termination of a worker's employment because of his redundancy. (3) In this section "redundancy" means an involuntary and permanent loss of employment caused by an excess of manpower.
See Labour Act, Cap L1, Laws of the Federation of Nigeria 2004, s. 20; official NIPC resource PDF, retrieved 8 October 2026.
AELEX notes that the Labour Act redundancy procedure covers only employees within its statutory worker definition.
The major issue to note in a redundancy scenario is that reliance on the Act will only cater for employees who fall within the statutory definition of workers as defined in the Labour Act.
See AELEX (collective byline), Redundancy Procedure under Nigerian Labour Law, 20 June 2023, retrieved 8 October 2026.
Templars read Nigerian law as still allowing termination without cause where the employment contract provides for it.
Despite the NICN’s altruism and best intentions toward employees, the position of Nigerian law remains that, if the employment contract provides for termination without cause, the employer can terminate for services no longer required and is not obliged to furnish any reasons.
See Adewale Atake SAN, Inam Wilson SAN, Joseph Abukpain and Konyin Osipitan, Templars, Is Termination of Employment without Reason Still Valid in Nigeria?, 20 June 2023, retrieved 8 October 2026.
G. Elias describe an employer terminating without notice as choosing between common-law pay in lieu of notice and international-best-practice compensation based on the contract's duration.
For instance, when an employer decides to terminate an employee's contract of employment without notice, the employer is generally faced with options of whether (A) to adhere to the common law principle of compensating the employee with a salary in lieu of notice, as held in Dangote v. Ager1, or (B) to comply with international best practices by compensating the employee based on the duration of the employment outlined in the contract.
See Abdurrahman Salis, Iyanuoluwa Adeyemo and Sulaimon Badmus, G. Elias, Employee Rights: Employers offering Employees the Right to Resign or Be Terminated, 14 March 2025, retrieved 8 October 2026.
Can a Nigerian employment contract include a non-compete?
A Nigerian employment contract may contain a post-employment restraint, and the Federal Competition and Consumer Protection Act 2018 takes an individual's agreed work restrictions outside its prohibitions only where the period is no more than two years. Practitioners read that limit as a ceiling that does not by itself make a restraint enforceable. For a covered worker, a restraint is also a special condition that the written particulars must include.
Section 68(1)(e) of the Act, in its list of things the Act does not prohibit, covers a service contract in so far as a person who is not a body corporate accepts work restrictions, as an employee or otherwise, during or after termination, for no more than two years. That wording takes a restraint out of the Act's own prohibitions; it does not answer whether a court will enforce a particular duration, territory or customer restriction under restraint-of-trade doctrine.
Olisa Agbakoba Legal reads the two-year limit as a ceiling rather than a safe harbour, and AELEX states the general rule that restraints of trade are prima facie unenforceable unless reasonable and fair.
Because practitioners treat a restraint as supportable only where it protects a demonstrable legitimate interest, a restraint assessment records the confidential information, assets or relationships needing protection, the employee's access, and the reason for each restriction.
Sources for this answer
Section 7(1)(h) requires special contract conditions to be included among covered workers’ written particulars.
(1) Not later than three months after the beginning of a worker's period of employment with an employer, the employer shall give to the worker a written statement specifying‐ (a) the name of the employer or group of employers, and where appropriate, of the undertaking by which the worker is employed; (b) the name and address of the worker and the place and date of his engagement; (c) the nature of the employment; (d) if the contract is for a fixed term, the date when the contract expires; (e) the appropriate period of notice to be given by the party wishing to terminate the contract, due regard being had to section 11 of this Act; (f) the rates of wages and method of calculation thereof and the manner and periodicity of payment of wages; (g) any terms and conditions relating to‐ (i) hours of work; or (ii) holidays and holiday pay; or (iii) incapacity for work due to sickness or injury, including any provisions for sick pay; and (h) any special conditions of the contract.
See Labour Act, Cap L1, Laws of the Federation of Nigeria 2004, s. 7(1); official NIPC resource PDF, retrieved 28 September 2026.
FCCPA section 68(1)(e) includes specified noncorporate-person service-contract work restrictions within an exception to this Act, with two-year wording; section 68(4) requires Commission privileges or exemptions under subsection (1) to remain consistent with the Act.
68.-(1) Nothing in this Act prohibits- (a) combinations or activities of employees for the reasonable protection of employees : (b) arrangenients for collective bargaining on behalf of employers and employees for the purpose of fixing minimum terms and conditions of employment: (e) activities of professional associations designed to develop or enforce standards of professional qualifications : (d) a contract or an arrangemen among partners, none of whom is a body corporare. in so far as it contains provisions in relation to the terms of the partnership or the conduct of the partnership business or in relation to competition berween the partnership and a party to the contract, arrangement or understanding while that party is. or after that party ceases to be a partner: (r) a contract of service or a contract for the provision of services in so faras it contains provisions by which a person, not being a body corporate. agrees to accept restrictions as to the work, whether as an employee or otherwise, in which that person may engage during or after the termination of the contract and this period shall not be more than two years; (7) a contract for the sale of a business or shares in the capital of a body corporate carrying on business in so far as it contains a provision that is solely for the protection of the purchases in respect of the goodwill of the body corporate: or (g) any act done to give effect to a provision of a contract or an arrangement referred to in paragraphs (a) to (f) of this subsection. (2) With respect to professional services subject to the regulation of professional bodies, the Commission may issue guidelines for the application of certain provisions of this Act to the supply of services or conduct of business by members of such professional associations: (3) For the purposes of subsection (2), the Commission shall, from time totime, publisha list of professional bodies to whom the subsection applies. (4) Any privilege or exemption granted by the Commission under subsection (i) shall be consistent with the provisions of this Act.
See Federal Competition and Consumer Protection Act 2018, s. 68(1)–(4), Official Gazette 2019 No. 1, printed A35–A36 (PDF pp. 37–38); original FCCPC PDF matched retained bytes on 28 September 2026; subsection label and operative text visually checked. Independent body-layout OCR spelling and distorted paragraph labels preserved; complete contiguous operative text, with page/marginal headings excluded during spatial extraction. Scope and interaction with employment restraint doctrine remain unresolved.
Olisa Agbakoba Legal reads the FCCPA two-year limit as a ceiling that does not by itself validate a shorter restraint.
The statutory maximum should accordingly be understood as a ceiling, not a safe harbour: it forecloses restraints longer than two years but does not, by itself, validate shorter restraints that are otherwise unreasonable or unsupported by a demonstrable legitimate interest.
See Ifeoma Ezenwa and Jesujoba Tosu, Olisa Agbakoba Legal, Non-Compete Clauses in Nigeria: Are They Enforceable?, 13 September 2026, retrieved 8 October 2026.
AELEX states the general rule that covenants in restraint of trade are prima facie unenforceable unless reasonable and fair.
It is the general rule that all covenants in restraint of trade are prima facie unenforceable unless they are reasonable and fair.
See Abdulmajeed Abolaji, AELEX, Training Bonds – How enforceable are they against employees in Nigeria?, 1 October 2020, retrieved 8 October 2026.