Africa Deployments (ADS) is an Employer of Record (EOR) provider that lets international companies hire staff in Nigeria legally, without opening a local entity. As an EOR Nigeria partner, ADS becomes the legal employer of record, handling labor contracts, pension registration, and PAYE income tax withholding under the newly reformed Nigeria Tax Act 2025, so a foreign business can build a compliant team in Africa’s largest economy.

Quick facts: Employer of Record Nigeria at a glance

• PAYE (Nigeria Tax Act 2025, effective 1 January 2026): 0% on the first NGN 800,000 of annual chargeable income, then progressive rates from 15% to 25%
• Pension: 8% employee, 10% employer, calculated on Basic + Housing + Transport
• National Housing Fund (NHF): 2.5% of basic salary
• NSITF (Employees’ Compensation): 1% of monthly payroll, employer-only
• National minimum wage: NGN 70,000/month
• Standard workweek: 40 hours

What Is an Employer of Record in Nigeria?

An Employer of Record in Nigeria is a licensed local entity that legally employs staff on behalf of a foreign company, while that company retains full control over the employee’s day-to-day work. Africa Deployments’EOR Nigeria service covers compliant contract drafting, pension registration with a licensed Pension Fund Administrator, PAYE withholding under the new NTA 2025 bands, statutory leave administration, and work permit support for expatriates.

Beyond EOR, Africa Deployments also supports companies that want a PEO Nigeria co-employment arrangement, plus standalone payroll Nigeria outsourcing for businesses that already hold a local entity but want compliant NGN payroll and pension/NHF/NSITF reporting handled externally.

Nigeria Employment Law at a Glance

Payroll, Tax and Pension Compliance in Nigeria

Nigerian payroll runs on two parallel obligations: PAYE income tax withheld under the Nigeria Revenue Service (NRS), formerly the Federal Inland Revenue Service (FIRS), and mandatory pension contributions to a licensed Pension Fund Administrator under the Pension Reform Act. The Nigeria Tax Act 2025 replaced the old Consolidated Relief Allowance system with a tax-free first NGN 800,000 of annual chargeable income and new progressive bands, a change that took effect 1 January 2026.

Because payroll systems built on the previous PITA bands now produce incorrect PAYE figures, and because the tax authority itself was renamed from FIRS to NRS as part of the same reform package, businesses running Nigeria payroll on outdated processes risk both under-withholding and misfiling. This is the compliance gap Africa Deployments’ EOR and payroll Nigeria services are built to close.

Why Companies Choose Africa Deployments for EOR Services in Nigeria

Africa Deployments (ADS) operates as an Employer of Record across 50+ African countries, including Nigeria, giving companies a single partner for West Africa and continent-wide expansion rather than a patchwork of local vendors. For Nigeria specifically, ADS handles:

• PAYE computation and remittance under the current NTA 2025 bands
• Pension, NHF and NSITF registration and remittance
• NGN payslip generation and payroll reporting
• Statutory leave and termination calculations

Frequently Asked Questions

What does an Employer of Record in Nigeria actually do?

An EOR like Africa Deployments becomes the legal employer of your Nigeria-based staff, managing contracts, pension registration, PAYE withholding and statutory leave, while you direct the employee’s daily work.

How did Nigeria’s payroll tax change in 2026?

The Nigeria Tax Act 2025 introduced a tax-free first NGN 800,000 of chargeable income and progressive bands from 15% to 25%, replacing the old Consolidated Relief Allowance system.

What is Nigeria’s minimum wage and pension rate?

The national minimum wage is NGN 70,000/month. Pension contributions are 8% employee and 10% employer, calculated on Basic, Housing and Transport pay.

Does Africa Deployments offer payroll-only services in Nigeria?

Yes. Alongside full EOR, ADS provides standalone payroll Nigeria outsourcing for companies that already have a local entity but want pension, NHF, NSITF and PAYE compliance managed externally.

About Africa Deployments

Registered Company Name: Africa Deployments Ltd.

Address: The Strand, Beau Plan Business Park, Mauritius

BRN: C19167158 | VAT: 27738392

Phone: +230 5713 8629

Conclusion

Nigeria’s 2026 tax reform changed PAYE calculations, relief structures and even the name of the tax authority at the same time. An EOR Nigeria arrangement with Africa Deployments keeps pension, NHF, NSITF and NRS compliance current, giving international businesses a fast, compliant route into Africa’s largest economy.

Reviewed by: Africa Deployments (ADS) Compliance Team