Africa Deployments provides Professional Employer Organisation (PEO) services in Nigeria, entering into a co-employment structure with international businesses to manage payroll compliance, statutory contributions, and HR administration for Nigeria-based staff. As a Nigeria PEO partner, Africa Deployments handles the employer-of-record obligations under the Labour Act while your business retains operational direction – an arrangement suited to companies building a Nigerian presence without taking on the full complexity of local PAYE, Contributory Pension, and NSITF administration in-house.
Quick facts: PEO Nigeria at a glance
- PAYE: Progressive 7% to 24%; state-level remittance to the relevant State Internal Revenue Service
- Contributory Pension: 10% employer + 8% employee of monthly gross emoluments
- NSITF: 1% of gross salary (employer-only)
- ITF Levy: 1% of annual payroll for qualifying employers (25+ employees or NGN 50M+ turnover)
- NHF: 2.5% of monthly salary (employee deduction, remitted to Federal Mortgage Bank)
- Federal minimum wage: NGN 70,000/month from July 2024
What Is PEO in Nigeria?
A PEO in Nigeria is a co-employment arrangement where Africa Deployments shares the statutory employer responsibilities for your Nigerian workforce. Your business retains direct management and operational control of staff, while Africa Deployments manages the payroll processing, state-level PAYE filings, Contributory Pension Scheme remittance to approved PFAs, NSITF contributions, NHF deductions, and ITF levy management. Africa Deployments’ PEO services in Nigeria are designed for businesses that want Nigerian compliance managed externally without the administrative overhead of running a full local payroll function.
Nigeria Employment Law at a Glance
| Requirement | Detail |
|---|---|
| Governing law | Labour Act Cap L1 LFN 2004; Pension Reform Act 2014 |
| Minimum wage | NGN 70,000/month from July 2024 (Federal) |
| PAYE | Progressive 7% to 24%; state Internal Revenue Service filing |
| Contributory Pension | 10% employer + 8% employee of gross emoluments |
| NSITF | 1% of gross salary (employer-only) |
| ITF Levy | 1% of annual payroll (qualifying employers) |
| Annual leave | 6 working days minimum per Labour Act; contracts typically offer 15 to 20 days |
Payroll, Tax and Pension Compliance in Nigeria
Nigeria’s PAYE system operates at state level, with each State Internal Revenue Service (SIRS) responsible for PAYE administration for employees working in that state. Lagos employees file with LIRS, Abuja employees with FIRS (as FCT), and other states with their own SIRS. The Federal Inland Revenue Service (FIRS) handles corporate taxes and VAT at the federal level but does not administer employment PAYE outside the FCT. PAYE is progressive from 7% (annual taxable income below NGN 300,000) to 24% (above NGN 3,200,000), with a 1% minimum PAYE obligation on gross income.
Pension Reform Act 2014 contributions – 10% employer and 8% employee – must be remitted to a licensed PFA within 7 working days of salary payment. NSITF contributions at 1% of gross salary are employer-only and remitted monthly. ITF levy of 1% of annual payroll applies to employers with 25 or more employees or annual turnover above NGN 50 million. NHF at 2.5% is a monthly employee deduction remitted to the Federal Mortgage Bank of Nigeria.
Why Companies Choose Africa Deployments for PEO Services in Nigeria
- Labour Act-compliant co-employment contracts with clear employer responsibility split
- State-level PAYE filing across all 36 Nigerian states and FCT
- Monthly Contributory Pension remittance to approved PFAs within the 7-day window
- NSITF, NHF, and ITF compliance management
- Nigeria PEO as part of Africa Deployments’ multi-country West Africa employer platform
Frequently Asked Questions
What is the difference between EOR and PEO in Nigeria?
An EOR like Africa Deployments is the sole legal employer of your Nigerian staff – no local entity is required. A PEO is a co-employment arrangement where Africa Deployments shares employer responsibilities alongside your business, typically used when you already have or are building a Nigerian entity.
What is Nigeria’s Contributory Pension contribution rate?
Under the Pension Reform Act 2014, employers contribute 10% and employees contribute 8% of monthly gross emoluments. Contributions must be remitted to a licensed Pension Fund Administrator (PFA) within 7 working days of salary payment.
How does state-level PAYE work in Nigeria?
Each Nigerian state has its own Internal Revenue Service that administers PAYE for employees based in that state. Africa Deployments’ PEO service manages the appropriate state-level PAYE filing for your Nigeria team, regardless of which state they work in.
What is the ITF Levy in Nigeria?
The Industrial Training Fund (ITF) Levy is 1% of annual payroll, applicable to private employers with 25 or more employees or annual turnover of NGN 50 million or more. It funds vocational and technical skills training across Nigeria.
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
Website: africa-deployments.com
Nigeria’s state-level PAYE system, Contributory Pension Scheme, and layered statutory obligations across NSITF, ITF, and NHF create a complex payroll compliance environment. Africa Deployments’ PEO Nigeria service provides the state-by-state filing capability, pension management infrastructure, and co-employment framework that international businesses need to hire and manage Nigerian staff compliantly.
Reviewed by: Africa Deployments Compliance Team
