Nigeria Payroll Services

At Bradford Jacobs, we navigate the administration of the Nigerian payroll system for you. We do the work, so you do not have to.

Nigerian Payroll

Operating payroll in Nigeria is a huge step for international companies moving into Africa’s strongest economy and a nation with the continent’s largest population of over 200 million.

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The World Bank assesses Nigeria as an emerging economy as it diversifies away from dependence on revenues and foreign exchange from oil and natural gas production. These natural resources nevertheless provide a sound foundation for the economy; in 2022 Nigeria was the world’s seventh largest producer of oil and has among the largest reserves of natural gas.

The benefits are clear, but expert knowledge is essential to deal with the paperwork and red tape that jeopardises implementing your business plan swiftly and successfully… that is why you need Bradford Jacobs on your team. We have total understanding of all the issues surrounding Nigeria’s payroll regulations, contracts, taxes, labour laws and every aspect of employment compliance.

Bradford Jacobs’ Professional Employer Organisation (PEO) and Employer of Record (EOR) platforms and networks provide complete answers to every question your company will encounter before you move into the economy, especially when it comes to operating payroll.

  • Remote payroll – This option allows businesses to operate under a single payroll system, by adding employees in Nigeria to your parent company’s payroll. However, these employees must operate under different regulations, which is likely to cause problems.
  • Internal payroll – You may operate payroll for your subsidiary, especially if you are committed to growing your company’s presence in Nigeria. However, this does require hiring dedicated HR staff who understand Nigerian employment and compliance laws.
  • Nigerias’ payroll processing company – If you are considering outsourcing, then working with a Nigerian payroll company will help in processing your payroll – but not when it comes to compliance.
  • Nigerias’ payroll outsourcing – However, there is another option available that solves both concerns – by working with Bradford Jacobs. We can handle payroll and compliance for all your employees in Nigeria. We take the administrative stress off your shoulders so you can focus on what you do best.

Foreign companies intending to operate in Nigeria need to establish a subsidiary to legally recruit and run payroll for their staff. The typical choice is to establish a private limited company, which generally protects the parent company, its shareholders and members from liability as it is an independent legal entity. Company registration must comply with the Companies and Allied Matters Act, and the incorporation process is through the Nigeria Investment Promotion Commission (NIPC) and can be completed via the One-Stop Investment Centre (OSIC).

Once the company is incorporated, employers must register staff, comply with the Labour Act and be aware of the difference between ‘workers’ and ‘non-workers’ under Nigerian legislation. ‘Workers’ are generally manual and clerical workers and they are subject to the minimum standards for benefits and entitlements under the Labour Act. ‘Non-workers’ are staff employed in such as professional, technical, management and administrative positions and their terms of employment are covered by their contracts. Procedures for onboarding employees in Nigeria include:

  • Obtain or verify the employees’ National Identity Number (NIN) from the National Identity Management Commission (NIMC). This is required for citizens, permanent residents and legally-resident foreigners
  • Regarding expats, to obtain their NIN they must provide their passport, resident permit (CERPACform/card) and a Bank Verification Number (BVN)
  • Register employee with the Federal Inland Revenue Service (FIRS) and the relevant State Internal Revenue Service (SIRS)•Obtain the individual’s Tax Clearance Certificate (TCC) from the relevant SIRS to show no taxes are owed from previous employment
  • Register employees with the Formal Sector Health Insurance Programme with the National Health Insurance Authority (NHIA)
  • Register employees for the Organised Private Sector Health Insurance (OPS), scheme which is funded by contributions from employers and employees

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