Nigeria flag Nigeria: Operating a Business in Nigeria

Work conditions in Nigeria

The Active Population in Figures

201820192020
Labour Force 60,517,05463,226,72062,242,961

Source: International Labour Organization, ILOSTAT database

 
201720182019
Total activity rate 54.88%55.81%56.66%
Men activity rate 60.79%62.38%63.84%
Women activity rate 48.87%49.11%49.34%

Source: International Labour Organization, ILOSTAT database

 

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Working Conditions

Legal Weekly Duration
The general work week is 40 hours, with all workers entitled to two to four weeks of annual leave, overtime and paid leave. This does not apply for agricultural and domestic workers.
Retirement Age
The Pension Reform Act (PRA) or 2014 does not specify an age of retirement, which depends on the contractual conditions of each employee. Access to Retirement Savings Account (RSA) is only allowed after having retired. If an employee retires at age 50 or older, she or he can have immediate access to the RSA. If an employee works for an employer for a month, her or his contribution will be paid by the employer in the RSA for that month. In the state sector, one must retire after 35 years of service or at 65 years (70 years for university professors). For more information, see the National Pension Commission website.
Working Contracts
The Labour Code provides that the employer must give employees a written report within three months of the employee contract coming into force. The contract must include information such as the location of the employer and the employee, the position, a job description including working hours, compensation, vacation allowance and holiday pay, etc. Three-quarters of Nigerians work in the informal and agricultural sectors or are unemployed.
Labour Laws
Consult Doing Business Website, A summary of the labour regulations that apply to local entreprises.

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Cost of Labour

Minimum Wage
NGN 18,000 per month (source: ILO, 2011).
Average Wage
The average salary in Nigeria is $2 per day.
Social Contributions
Social Security Contributions Paid By Employers: 7.5%
Social Security Contributions Paid By Employees: 7.5%

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Social Partners

Social Dialogue and Involvement of Social Partners
Unions tend to resolve issues related to working conditions, wages, benefits, health and safety measures quickly through negotiations. Collective bargaining in the oil and gas sector is also relatively efficient compared to other sectors.
Unions
Nigeria Labour Congress (NLC)
Unionisation Rate
Approximately 30% of the total labour force in the public and formal private sectors is unionised. However, workers in the agricultural sector are not unionsied and make up  more than half of the workforce.
Labour Regulation Bodies
Ministry of Labour and Employment

Find out more about Operating a Business in Nigeria on GlobalTrade.net, the Directory for International Trade Service Providers.

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Latest Update: April 2022

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