Let’s explore the benefits of using Employer of Record solutions like Borderless.
4 Reasons to Hire from Nigeria
Nigeria is an increasingly attractive destination for international employers, offering an experienced talent pool.
Low Cost of Living
With its favorable cost of living and competitive wages, Nigeria is an ideal choice for employers looking to access skilled workers known for their work etiquette.
Good Infrastructure
Nigeria’s infrastructure is also constantly improving, making it easier for companies to do business in Nigeria. International businesses can benefit from improved telecommunications systems and access to reliable transportation networks that help them stay connected with their employees.
Stability
Politically, Nigeria is a stable nation which provides a secure environment for businesses operations. The nation’s legal system is well-developed, helping employers comply with all relevant regulations when hiring employees in Nigeria.
Multilingual Workforce
A multilingual workforce can be an incredible asset to any organization. By having Nigerian employees who speak multiple languages, businesses can expand their customer base. Additionally, employees with language skills can help to establish business relationships and open doors to new opportunities.
Nigerians have a native command of English and can fluently speak additional languages such as Hausa, Yoruba, Igbo, Fulfulde, Ibibio, Kanuri, and Ti.
Overall, there are numerous reasons why international employers should consider hiring from Nigeria. Location is only one part of the hiring equation. You can hire in Nigeria hassle-free with a seamless EOR platform like Borderless.
Legally Hire from Nigeria
When hiring employees in Nigeria, employers must register as an entity in Nigeria if they do not choose to go through an EOR. This is usually a time-consuming task with little guidance on labor laws and the risk of misclassification.
They must also adhere to the regulations outlined by the Nigerian Labour Act. This act defines three main types of employment: permanent, fixed-term, and freelance. Employment contracts are established by agreement, a collective bargaining process, or an industrial wages board.
What Are the Different Types of Employment Options in Nigeria?
Permanent employment is a long-term arrangement and offers a range of benefits and entitlements that are outlined in the employee’s contract. This includes holiday pay, sick pay, maternity leave, and other statutory benefits, as well as an employer’s contribution towards pensions.
Fixed-term contracts are also known as ‘temporary contracts’ and usually last between one and two years. The terms often offer similar benefits to those under permanent contracts. At the end of a fixed-term contract, it is up to both parties to decide on a renewal.
Freelance employment offers more flexibility, allowing employers to bring in skilled professionals on an ad hoc basis without committing to ongoing costs such as salaries or benefits payments. Freelancers are usually employed on a project basis and paid according to output rather than hours worked.
Employers who want access to a larger talent pool without worrying about managing administrative tasks should consider using an EOR platform like Borderless for all their hiring needs in Nigeria.
What is an Employer of Record (EOR)?
An Employer of Record (EOR) is a third-party organization that acts as the legal entity hiring an individual or group of employees based in Nigeria.
Contracts and Documentation Meet Nigerian Law Requirements
Requirements for what must be included in an employment contract differ from country to country. An EOR can help you review contracts and documents required by Nigerian law, including employment agreements and other important documents such as non-disclosure agreements and confidentiality clauses.
An EOR can help employers meet legal obligations in Nigeria. With an EOR platform like Borderless, employers can also find all these contracts and documentation in one place.
Insurance and Benefits Are Provided to Nigerian Employees
An EOR can help employers ensure that they provide employees with certain benefits, such as health insurance coverage. These entitlements are outlined in Nigerian labor laws and must be adhered to by employers when hiring staff from Nigeria.
Paid Time Off and Public Holidays Are Given to Nigerian Employees
According to the Public Holidays Act in Nigeria, employers must give Nigerian employees a minimum of six annual paid vacation days after 12 months of employment excluding public holidays. Employees are entitled to 12 sick days too, as long as they can prove that their illness is certified by a medical practitioner.
An EOR can provide employers with more information surrounding public holidays, overtime pay, and paid time off.
To date, there are nine public holidays in Nigeria:
- January 1: New Year’s Day
- April: Good Friday
- April: Easter Monday
- May 1: Workers’ Day
- October 1: National Day
- December 25: Christmas Day
- Subject to Hijri calendar: Eid al-Fitr
- Subject to Hijri calendar: Eid al-Adha
- Subject to Hijri calendar: Mawlid
Tax Obligations and Employer Obligations Satisfied
An EOR can also assist employers to pay corporate and employer taxes in Nigeria. The employer cost in Nigeria is approximately 12% of the employee's salary. Breaking it down, employers pay 10% to the National Pension Fund, 1% to the Industrial Training Fund, and 1% to the Nigeria Social Insurance Trust Fund (NSITF).
Employers must also be aware of their obligations to Nigerian employees such as daily communication, career development, recruitment, onboarding, and interviewing. EORs simply carry out legal and HR procedures, like contracts, payroll, and taxes for employers.
What Benefits Does an EOR Offer to Employers in Nigeria?
Hiring employees in Nigeria can be a complex process, as employers must ensure compliance with local labor laws and regulations. An EOR is the best solution for employers in Nigeria. An EOR platform like Borderless can provide numerous benefits to employers, such as guaranteed compliance.
Through an EOR, employers are guaranteed compliance with Nigerian labor laws and regulations with access to expert advice. All contracts, documents, benefits and taxes are managed according to local standards and expectations.
EORs help employers reduce costs, too. EORs help reduce the overhead costs and paperwork associated with in-country hiring and payroll administration in Nigeria. By outsourcing this process to an EOR, employers can save time and money while ensuring their employees receive the correct payments on time every month.
EORs also help employers understand their tax obligations when hiring employees in Nigeria and provide guidance on how to manage these responsibilities correctly and efficiently.
With an EOR platform, employers also have access to comprehensive employee management tools which enable instant payment processing and secure document storage with peace of mind.
Choosing the Right Employer of Record
When comparing EOR solutions, it’s important to consider factors such as pricing, customer service, service level agreements, and any other factors that may affect your hiring process. You also need to make sure that the chosen provider is compliant with local labor laws so that all parties are protected.
Check the EOR’s customer reviews before signing up. Reviews can give valuable insight into how good their customer service is and whether they have consistently met their customers' expectations.
Taking these steps will help ensure that employers get the most out of an EOR platform when hiring employees from Nigeria. With Borderless, employers can benefit from guaranteed compliance with local labor laws and regulations, access to a larger talent pool, reduced costs, and comprehensive employee management tools for a hassle-free onboarding experience.
Borderless – Your EOR Platform for Employers Hiring From Nigeria
Hiring employees in Nigeria can be daunting for employers who are unfamiliar with local labor laws and regulations. The right EOR platform can help make the process easier through full compliance with Nigerian labor laws and regulations, comprehensive employee management tools, and excellent customer service.
Borderless is the ideal EOR solution for employers in Nigeria who want to quickly and easily hire the right employee for their business. Borderless eliminates potential legal headaches before they arise. Book a demo today!
Disclaimer
Borderless does not provide legal services or legal advice to anyone. This includes customers, contractors, employees, partners, and the general public. We are not lawyers or paralegals. Please read our full disclaimer here.
