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Working with an EOR in Nigeria is an attractive option for businesses looking to expand in Africa’s biggest economy. An employer of record (EOR) hires professionals on your behalf and assumes many liabilities associated with being an employer, allowing you to quickly and compliantly onboard top local talent without needing to set up your own entity in the country.
For companies that need help identifying outstanding candidates for the roles they wish to fill in the country, an EOR in Nigeria will also have an established recruitment network to assist with those efforts.
While any selected candidates will officially be employed by the EOR in Nigeria, those professionals will report directly to you. So that you can effectively have local talent in place without ever needing to worry about navigating unfamiliar regulations.
SEE ALSO: Call center outsourcing: 5 great destinations to consider
It is worth noting that some EOR providers may also refer to themselves as an international professional employer organization (PEO).
If you are interested in hiring in Nigeria, contact us for more information.
Nigeria: ‘the Giant of Africa’ in many ways
Nigeria is located between the Sahel area and the Gulf of Guinea in West Africa. Its diverse landscape makes it ideal for a broad range of plants and animals as well as one of the largest river systems worldwide.
Nigeria is often referred to as the ‘Giant of Africa’, thanks to having the largest population on the contient, biggest economy by GDP, and also due to its massive diversity of nature, languages, and people. While English is the official and most widely-spoken language, more than 250 languages are spoken around this West African nation. Culturally, Nigeria is also a major producer of arts and music, while the scale of its film industry has seen it become known as Nollywood.
The country is a continental leader in energy power, pharmaceuticals, and the financial market. It has a highly developed financial services sector, and an abundant supply of natural resources, including coal, gold, and bauxite. Most factories are located in the State of Ogun, considered the current Nigerian industrial hub.
The largest city in the country is Lagos, which was replaced as capital by Abuja in 1991. Lagos is one of the fastest-growing megacities in the world, and it hosts one of the biggest ports in Africa. It is also a culturally rich, major tourist destination. Business Insider Africa prospects that it may become the largest city globally by the end of this century.
Hiring and doing business in Nigeria
The business culture in Nigeria is strong and Nigerians are famed for their entrepreneurial spirit. Businesses are known for having an often hierarchical culture, in which older people command great respect. Familiarizing yourself with such a culture is essential for hiring in the country.
Like in many countries, being successful in business in Nigeria often requires relationship-building, and in-person meetings are often highly favoured. Thanks to growing access to professional education, Nigeria has become a solid location for sourcing skilled professionals via headhunters in Africa.
The telecommunications market in Nigeria is one of the fastest-growing in the world. There are major emerging market operators basing their most profitable centers in the country. Lagos is regarded as one of the main technology hubs in Africa and IT jobs have become more and more readily available in Nigeria.
High levels of English proficiency also make the country a good prospect for call center activities, especially for businesses receiving large volumes of calls from customers in Europe or elsewhere in Africa, due to the similar timezones.
You may also find potential team members In Nigeria in other key areas such as marketing, transport, and medicine, with many highly-skilled professionals seeking the prestige of working with international businesses.
EOR in Nigeria: reach the best talent
Using the services of an employer of record in Nigeria helps hiring in the country to become an efficient process. An EOR in Nigeria takes care of various administrative tasks, including onboarding, payroll management, leave management, health insurance, offboarding, and a range of other regulatory matters.
These third-party experts possess in-depth knowledge of the local labor laws, helping businesses navigate compliance issues, such as contractor misclassification risk. Moreover, an EOR in Nigeria has an extensive recruitment network, simplifying the process of hiring suitable candidates for specific positions within the company.
An EOR in Nigeria will charge a fee, usually on monthly basis per employee hired. This investment is generally more cost-effective and time-efficient compared to establishing and managing a new entity in a foreign territory on your own. These companies often have a presence in the region and can provide valuable assistance during further expansion endeavors.
If you are looking to hire professionals in more flexible agreements, you can also seek international independent contractors. They are self-employed people who operate independently according to an established contract and will not be legally considered full-time employees of your company. An EOR in Nigeria can also help you in hiring contractors, easily overcoming work misclassification.
Regulations an EOR in Nigeria will take care of
In Nigeria, contracts contain explicit agreements surrounding work hours and location, duties, benefits, and holidays.
Minimum wage: The Nigerian payroll cycle is typically monthly, though employers can agree to pay in a weekly or fortnightly cycle. The current minimum wage is 30,000 Nigerian Naira per month for a five-day week of eight hours’ daily work.
Working hours and overtime: The Labour act does not cover working hours, although the minimum wage is based on a 40-hour, five-day week. In some sectors, 48 hour, six-day weeks are common. Overtime needs to be specified in the employee and employer agreement, as there is no mandatory pay or limit by law.
Employee leave: national law offers 12 weeks of maternity leave. Nigerian workers are also entitled to 12 days of sick leave, and an annual leave of at least six days for vacations. Public holidays are at the president’s discretion to a minimum of 11 days.
Payroll taxes: The employer payroll tax consists of a 10% tax rate for pension, 1% for the Industrial Training Fund, and 1% for the insurance fund. Employees must contribute with an 8% rate for pension and 2% for the housing fund. Corporate tax is relatively high, at 30%.
Serviap Global can help you find top talent in Nigeria
Serviap Global assists companies with hiring around Africa, so if you are interested in working with an EOR in Nigeria, we can help.
Our network of international entities and trusted partners allows us to assit companies in over 100 countries worldwide, and our portfolio includes international PEO / EOR services, contractor hiring, and global talent acquisition to assist companies with finding direct hires.
Contact us to find out how we can assist you as an EOR in Nigeria.
