Employer of Record in Nigeria

For companies building teams of 10 or more across business, technical, and operational functions — not for individual hires.
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Why companies build teams in Nigeria

Lundi supports compliant employment in Nigeria — Lagos for fintech and tech (Flutterwave, Paystack, Andela heritage), Abuja for government-adjacent. Africa's largest single tech market. Strong fit for English-fluent operations serving Africa and global SaaS roles.

Languages

English

Payroll Frequency

Monthly, Bi-Monthly, Weekly

Currency

NGN

Capital City

Abuja

Employer Tax Rate

21.00%

Nigeria has Africa's largest single tech ecosystem — Lagos concentrates fintech (Flutterwave, Paystack — acquired by Stripe, Interswitch), SaaS engineering (Andela founded here), and corporate operations. Abuja adds government-adjacent and policy talent. English is the working language across professional roles. Nigerian naira (NGN) is the local currency — has experienced significant volatility; international employers typically structure USD-pegged or USD-equivalent compensation for senior roles. Strong fit for English-fluent fintech engineering, customer success, and African-market operations. For broader scaling Lundi also considers South Africa (deeper senior corporate), Kenya (East African presence), or Egypt (deeper outsourcing infrastructure).

Cost of Employment in Nigeria

What it costs to employ someone through Lundi.

Lundi's cost is the all-in cost of the employee — gross salary plus statutory employer contributions plus customary benefits — and a Lundi management fee on top. The management fee depends on team size and scope: smaller teams pay a higher per-head rate, teams of 20+ get materially better unit economics, and Build–Operate–Transfer engagements are structured separately.

The alternative paths look like: setting up your own local entity (meaningful months of legal and accounting work, plus ongoing in-country HR, payroll, and compliance infrastructure), engaging a local recruitment agency on contingency (typically a percentage of first-year compensation, paid once, with no ongoing employment relationship), or hiring as a contractor (lower upfront cost, real misclassification risk in most jurisdictions). Lundi is faster than entity setup, structurally different from contingency recruitment, and lower-risk than contractor arrangements.

Talk to us for specific pricing.

Talk to us about Nigeria

Employer Tax Costs in Nigeria

An employer’s social contributions in Nigeria total 21%. This includes contributions for pension and disability (10%), health insurance (10%), and accident (1%).

Employee Income Taxes in Nigeria

In Nigeria, employees pay between 7% and 24% in taxes, depending on their income bracket. Employees also pay between 15.5% in social security.

Employee Probation in Nigeria

There is no formal probation period in Nigeria.

Employee Overtime in Nigeria

Employees in Nigeria work eight hours a day, 40 hours a week.The terms of overtime work must be included in the employment contract. There is no government mandate on premium payment for overtime work.Employees can opt out of the working hours individually if their normal working hours are fixed by mutual agreement; however they cannot opt out individually if their working hours are fixed by a collective bargaining agreement.

Employee Notice in Nigeria

In Nigeria, notice periods vary depending on the length of service. The breakdown is as follows:

  • Up to three months' service: One day notice
  • Three months to two years' service: One week
  • Two to five years' service: Two weeks
  • Five or more years' service: One month

Salary in lieu of notice may also be given.

Termination in Nigeria

In Nigeria, employment can be terminated at any time by either the employer or the employee, as long as proper notice is given.There is no law requiring severance pay, but it is usually part of an agreement between the employer and employee, and depends on the employees' length of service and last salary. It can also be negotiated via sectoral collective agreements.

How Lundi works in Nigeria

Build

We scope your team and recruit the right people in-country — finance, accounting, HR/payroll, BD, ops, or IT.
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Operate

We employ the team via our local entity and run the day-to-day — payroll, compliance, HR, and performance management.
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Transfer

When you're ready, we transition the team to your own legal entity. Or stay on Lundi's infrastructure indefinitely — your choice.
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Why Companies Choose Lundi

If you need help with anything, we're here for you

Who is Lundi for?

Lundi works with companies building teams of 10 or more across business, technical, and operational functions . Not for one-off hires or individual placements.

How is this different from an EOR?

EOR platforms employ individuals for you. Lundi recruits, employs, and operates concentrated teams — including day-to-day management, HR, and an optional path to your own entity. It's the operating model for companies that have outgrown the EOR ceiling.

Still have any questions? Talk to us.