HR software for Nigerian SMBs
Run compliant HR for your Nigerian business without building everything from scratch. Leave, contracts, records, and data protection aligned with the Labour Act and NDPA 2023.
HR in Nigeria: what you need to know
Nigerian employment law is anchored in the Labour Act (Cap L1, Laws of the Federation of Nigeria 2004), with the Employees' Compensation Act, the Pension Reform Act 2014, and the Industrial Training Fund Act sitting alongside it. The Labour Laws (Amendments) Act, No. 4 of 2025 (gazetted 14 March 2025) added enhanced maternity and paternity provisions, including extended leave for parents of premature babies. State-level employment laws also apply in several states, which matters for multi-state employers.
The National Minimum Wage (Amendment) Act 2024 raised Nigeria's statutory minimum wage from NGN 30,000 to NGN 70,000 per month, effective from May 2024, and shortened the review cycle from five years to three. Most Nigerian SMB wages already sit above the new minimum, but employers in lower-wage sectors had to adjust immediately.
Payroll and statutory contributions are split across federal and state authorities. PAYE is remitted to the State Internal Revenue Service where the employee works, not the federal government. Pension contributions go to licensed Pension Fund Administrators under the PRA 2014. The National Housing Fund applies to employees over a specified earnings threshold.
Data protection moved from the NDPR (2019) to the Nigeria Data Protection Act (NDPA) 2023, which is enforced by the Nigeria Data Protection Commission. Enforcement has focused on larger data controllers so far, but the regulatory direction is toward broader coverage.
Labour Act (Cap L1, LFN 2004)
The Labour Act is Nigeria's primary federal employment statute, applying to workers under written contracts of service (it technically does not cover management-grade administrative and professional staff, who fall under general contract law). In practice, most SMB employers apply the Act's standards to the whole workforce.
- Annual leave: 6 working days per year minimum after 12 months of service; most employers offer 15 to 20 days in practice
- Sick leave: up to 12 days paid per year, structured as 6 days full pay plus 6 days half pay under the Act
- Maternity leave: 12 weeks (84 calendar days) at minimum 50% pay; most reputable employers pay full salary. The Labour Laws (Amendments) Act 2025 extends maternity leave for mothers of premature babies until the child reaches 40 weeks of gestation
- Paternity leave: the Labour Laws (Amendments) Act 2025 provides 7 days (up from 3) for fathers of premature babies; the federal Act has no general paternity entitlement, and several states have introduced their own
- Written contracts required for employment over three months; terms must be provided to the employee in writing
Statutory bodies and regulators
FIRS
Federal Inland Revenue Service
Administers corporate tax and VAT. Note that PAYE personal income tax is collected at state level, not federal, by the relevant State Internal Revenue Service.
PFA
Pension Fund Administrators
Licensed under the Pension Reform Act 2014 to manage retirement savings accounts. Employees contribute 8% and employers 10% of monthly emoluments, with the contribution going to a PFA chosen by the employee.
NHF
National Housing Fund
Provides affordable housing finance. Mandatory 2.5% employee contribution on basic salary for workers earning above a specified threshold, remitted to the Federal Mortgage Bank of Nigeria.
ITF
Industrial Training Fund
Training levy applies to companies with five or more employees or NGN 50 million or more in annual turnover. Rate is 1% of total annual payroll.
NDPC
Nigeria Data Protection Commission
Enforces the Nigeria Data Protection Act 2023 (replacing the earlier NDPR framework). Handles registration of data controllers, complaints, and compliance investigations.
Statutory leave entitlements
| Leave type | Entitlement |
|---|---|
| Annual leave | 6 working days minimum; market standard is 15 to 20 days |
| Sick leave | Up to 12 days per year (6 full pay plus 6 half pay) |
| Maternity leave | 12 weeks at minimum 50% pay; most employers pay full salary |
| Paternity leave | 7 days for fathers of premature babies under the 2025 amendments; no general federal entitlement, 5 to 10 days common in practice |
| Public holidays | 11 to 12 gazetted days per year |
Data protection
Nigeria Data Protection Act 2023
The NDPA 2023 replaced the earlier NDPR framework and is enforced by the Nigeria Data Protection Commission. Employers must have a lawful basis for processing employee data, implement security measures, respect employee access rights, and notify NDPC of data breaches within 72 hours.
How Cedrios supports Nigeria HR
time off
Pre-configured with Nigerian statutory leave types, including the Labour Act minimums and the higher market standard many employers actually use. Easy to customize per-role without editing spreadsheets.
Explore featurepeople
One clean record per person with NIN, BVN, TIN, PFA details, and bank account. No more scattered WhatsApp messages and chasing staff for their pension PIN.
Explore featuredocuments
Store contracts, NIN copies, and training certificates with expiry alerts and role-based access. Supports the record-keeping requirements under both the Labour Act and the NDPA 2023.
Explore featurecompliance
Nigerian compliance defaults: audit trail, role-based access, and retention aligned with the Labour Act documentation requirements and NDPA 2023 data protection standards.
Explore featureFree tool
Calculate Nigeria leave entitlements
Free Nigeria leave calculator pre-loaded with Labour Act statutory minimums. Enter a start date and see annual, sick, maternity, and paternity totals, plus what most Nigerian employers actually offer above the statutory floor.
Open the calculatorIn-depth guides for Nigeria employers
Nigeria Labour Act: Leave Entitlements & NDPR Compliance for SMBs (2026)
Guide to employee leave under Nigeria's Labour Act and employee data protection under NDPA. Covers annual leave, sick leave, maternity leave, and compliance for Nigerian business owners.
ComplianceEmployee Leave Across Africa: A Country-by-Country Comparison for Employers (2026)
Compare employee leave entitlements across Kenya, Rwanda, Ghana, South Africa, Nigeria, and Ethiopia — annual leave, sick leave, maternity leave, and public holidays all in one guide.
CompliancePOPIA, NDPR, Kenya DPA — What Every African Employer Must Know in 2026
Five African countries now have active data protection laws with real fines. Here's what they require from HR teams.
ComplianceHow to Onboard Employees Compliantly Across 5 African Countries
Hiring in Nigeria, South Africa, Kenya, Ghana, or Rwanda? Each country requires different statutory fields, documents, and compliance steps. Here's the complete guide.
ComplianceEmployee Record Keeping for Small Businesses in Africa: What to Keep, How Long, and Why It Matters
What documents to store, how long to keep them, and how to stay compliant with labour laws in Kenya, Rwanda, South Africa, Ghana, and Nigeria.
Frequently asked questions about HR in Nigeria
What is the minimum annual leave entitlement in Nigeria?
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Under the Labour Act, employees are entitled to 6 working days of annual leave per year after 12 months of continuous service. This is the statutory minimum. In practice, most Nigerian employers offer 15 to 20 working days, which is the market standard across the country.
What are the maternity leave entitlements in Nigeria?
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Female employees are entitled to 12 weeks (84 calendar days) of maternity leave at minimum 50% pay under the Labour Act. Most reputable Nigerian employers pay full salary during maternity leave. Dismissal during maternity leave is prohibited.
What statutory deductions apply to Nigerian payroll?
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PAYE goes to the State Internal Revenue Service where the employee works, not the federal government. Pension contributions are 8% employee plus 10% employer to a licensed PFA. The National Housing Fund is 2.5% employee for workers above a specified earnings threshold. The Industrial Training Fund is 1% of payroll for employers with five or more staff or NGN 50 million or more in turnover.
What data protection laws apply to HR data in Nigeria?
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The Nigeria Data Protection Act (NDPA) 2023 is the current framework, replacing the earlier NDPR 2019. It is enforced by the Nigeria Data Protection Commission. Employers are data controllers and must have a lawful basis for processing employee data, implement security controls, and notify NDPC of breaches within 72 hours.
How long must I keep employee records in Nigeria?
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The Labour Act requires employment records to be kept, and tax authorities expect payroll records to be retained for at least six years. A practical rule is to keep full employment records for at least five years after termination, which covers most statute-of-limitations periods for employment disputes.
Can I manage a team split across Nigerian states and other countries with Cedrios?
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Yes. Cedrios supports multi-country and multi-state teams with per-jurisdiction rules where needed. A Lagos-headquartered business with employees in Abuja, Port Harcourt, and across West Africa can run them all from one account.
Does Cedrios support Nigeria-specific payroll calculations?
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Cedrios currently supports Nigerian leave management, contracts, documents, and people records. Integrated Nigerian payroll with state-level PAYE is on the roadmap. Our payroll calculator handles the statutory figures in the meantime.
Ready to modernize your Nigerian HR?
Start with the free tier, pre-configured for Nigeria. Add your team, switch leave tracking and records to Cedrios, and stop running HR out of WhatsApp and Excel.