What is the payroll cycle in Nigeria?

Monthly payroll is the standard cycle. Payroll is paid in NGN (Nigerian naira).

Can I run payroll in Nigeria without a local entity?

Yes. Through an Employer of Record (EOR), Gracemark employs your talent under Nigeria labor law and runs local payroll, no entity required.

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Payroll in Nigeria

Payroll in Nigeria runs in NGN (Nigerian naira). Monthly payroll is the standard cycle. No statutory 13th-month bonus is mandated nationally, though some employers pay discretionary year-end bonuses. Statutory employer contributions apply. Gracemark operates it end-to-end, humans, not tickets.

Get a Nigeria payroll quote Paying an existing team there? Tell us the headcount, email or phone is enough.

Currency

NGN, Nigerian naira

Payroll cycle

Monthly payroll is the standard cycle.

Working week

Standard working hours are commonly 40 hours per week (8 hours/day), with overtime terms typically set by employment contract or sector practice.

Minimum wage

The National Minimum Wage is NGN 70,000 per month, set by the National Minimum Wage (Amendment) Act 2024.

13th-month

No statutory 13th-month bonus is mandated nationally, though some employers pay discretionary year-end bonuses.

Employer cost

Employers contribute to the Pension Reform Act scheme (minimum 10% employer contribution), the Nigeria Social Insurance Trust Fund (NSITF, 1% of payroll) and the National Housing Fund and ITF levies where applicable.

Probation

Probation is commonly 3-6 months by contract, though not rigidly fixed by statute.

Notice period

Notice periods scale with length of service (from 1 day for under 3 months to 1 month for 2+ years) under the Labour Act, and severance/terminal benefits depend on contract terms and pension scheme payouts.

Two ways to run payroll in Nigeria

Own-entity payroll

For long-term presence in Nigeria. Gracemark manages statutory filings, pay runs, and year-end reporting under your entity, with a named operator on Western Africa time.

EOR-run payroll

No entity in Nigeria? Employ and pay talent under Gracemark's local infrastructure via EOR, onboard in 2–3 weeks, no local incorporation.

Compliance essentials in Nigeria

Mandatory contributory pension scheme applies
Statutory minimums are low, market offers exceed them
Large, young, fast-growing tech (fintech) talent base
USD contractor pay is common for senior engineers
Currency volatility shapes compensation strategy

Get a payroll quote for Nigeria

Send your headcount and salary band. We reply with employer burden, net-to-gross, and setup timeline, no sales scripts.

Get your Nigeria hiring plan

Send the role, a selected worker or an existing-team requirement in Nigeria. Get a written recommendation covering the model, cost categories, responsibilities and next steps. One hire is welcome; no meeting required.

100+ countries supported Compliance-first, vetted A real person replies within one business day

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Deeper guide

Hiring guide: Nigeria →

Employ without entity

EOR services →

All countries

Global payroll overview →