Key Takeaways
- An Employer of Record in Nigeria lets you hire top Nigerian talent without opening a local entity.
- The EOR handles payroll, compliance, and taxes so you can focus on your business.
- Nigeria is now a prime global hiring market thanks to its fast-growing tech and business talent pool.
- Betternship helps global companies hire Nigerian professionals legally, quickly, and with full compliance.
Introduction
Expanding into Africa used to be complicated. Setting up a local entity, figuring out taxes, and navigating employment laws often took months, not counting the cost.
But the talent market changed.
Nigeria has become one of the world’s fastest-growing sources of skilled professionals; developers, designers, accountants, customer-success specialists, and operations managers, all working remotely for international startups and scaleups.
Yet hiring directly from Nigeria as a foreign company still comes with red tape.
You’ll need a registered entity, legal representation, tax compliance, and payroll administration. That’s a lot of friction for a company that just wants to hire one or two brilliant engineers.
That’s where an Employer of Record (EOR) comes in.
In 2025, using an EOR in Nigeria isn’t just a compliance shortcut; it’s the easiest way to build a world-class team across Africa without getting stuck in legal paperwork.
Why Are Companies Hiring from Nigeria?
Nigeria has over 220 million people, with a median age of under 19. It’s a young, digital-first population where hundreds of thousands of professionals work remotely every day.
The rise of tech hubs like Lagos, Abuja, and Port Harcourt has created an ecosystem of developers, designers, analysts, and marketers ready to plug into global teams.
A few quick data points:
- Nigeria has an estimated 700,000 tech professionals, with over 80,000 new developers trained annually through bootcamps and universities.
- The average monthly salary for a skilled mid-level software engineer is $1,200–$2,000, compared to $8,000+ in the U.S.
- English is the official language, and most professionals work on Western time zones (GMT+1).
Hiring from Nigeria means access to affordable, skilled, and English-fluent talent who understand international workflows.
For U.S., U.K., and E.U. companies, that’s a triple win: cost efficiency, quality output, and cultural alignment.
The Challenge of Hiring Directly in Nigeria
Hiring a Nigerian professional directly sounds simple, until you try to make it legal.
To employ someone full-time in Nigeria, a foreign company must:
- Register a local entity with the Corporate Affairs Commission (CAC).
- Obtain Tax Identification Numbers and register for PAYE (Pay As You Earn).
- Set up statutory remittances like Pension, National Housing Fund (NHF), and Nigeria Social Insurance Trust Fund (NSITF).
- Draft compliant employment contracts under Nigerian Labour Law.
- Handle monthly payroll and tax filings locally.
That’s months of legal setup, ongoing accounting work, and potential penalties if filings are missed.
Many companies skip these steps and hire Nigerians as “contractors,” but that’s risky.
Misclassification can lead to back taxes and legal exposure, especially if the contractor is working full-time hours under your direction.
You also lose out on providing benefits: a red flag for top candidates who want stable, compliant work arrangements.
That’s why the Employer of Record model exists.
What Does an Employer of Record (EOR) Do?
An Employer of Record (EOR) is a local entity that employs workers on your behalf. You manage the day-to-day work, but the EOR handles everything legal:
- Employment contracts: drafted under Nigerian law.
- Payroll management: monthly salaries paid in NGN (or USD, where applicable).
- Tax filings and remittances: PAYE, pension, NHF, NSITF, ITF.
- Compliance: labour law, leave entitlements, termination procedures.
- Benefits administration: healthcare, bonuses, reimbursements.
Essentially, the EOR is the legal employer, while you remain the operational manager.
For global companies, this means you can hire top Nigerian talent, fast, compliant, and without bureaucracy.
Instead of waiting 4–6 months to establish a Nigerian subsidiary, you can onboard a new hire in as little as 7–10 days through a compliant EOR partner like Betternship.
How to Hire in Nigeria Using an Employer of Record
Here’s the exact process:
Step 1 – Identify Your Hiring Needs
Define the roles you need, whether it’s a full-stack developer, product designer, or operations associate.
Clarify if it’s a full-time hire or a project-based engagement.
Step 2 – Partner with a Trusted EOR (like Betternship)
Your EOR will handle everything from drafting contracts to setting up payroll.
They act as the employer on paper, ensuring every hire is legally protected.
Step 3 – Finalize the Offer and Compensation
The EOR helps you benchmark competitive Nigerian salaries and structure total compensation, including bonuses and benefits, in line with local expectations.
Step 4 – Onboard Your Hire
Once both parties sign, the EOR completes local compliance registrations and officially employs the worker.
You start managing tasks and deliverables immediately, while payroll, taxes, and compliance happen in the background.
Step 5 – Payroll and Compliance Management
Each month, you pay one invoice to the EOR.
They handle salary disbursements, tax filings, and statutory benefits, ensuring everything aligns with Nigerian labour regulations.
Step 6 – Scale or Offboard Smoothly
If you’re hiring more roles, the EOR duplicates the process instantly.
If a contract ends, the EOR manages offboarding and ensures all statutory payments and entitlements are settled correctly.
Why Nigeria Is a Smart EOR Destination in 2025
A few years ago, most foreign companies focused on hiring from India, the Philippines, or Eastern Europe.
In 2025, Africa, led by Nigeria, has become the new frontier for remote hiring.
Here’s why:
- Massive Talent Pool:
Nigeria graduates over 500,000 university students annually, many trained in STEM fields. Tech accelerators and remote work communities like AltSchool, Decagon, and Ingressive for Good have created a pipeline of globally competitive talent. - Competitive Costs:
Hiring a senior developer or operations lead from Nigeria can cost 60–70% less than hiring locally in the U.S. or Europe, without sacrificing quality. - Cultural Fit:
Nigeria’s workforce is global-minded, English-speaking, and highly adaptable to Western communication styles. - Government Support for Remote Work:
Nigeria’s business environment continues to open up. New digital banking systems, remote payment gateways, and HR compliance reforms are making international hiring easier than ever. - Strategic Time Zone:
Nigeria’s GMT+1 timezone overlaps perfectly with both Europe and early-morning U.S. hours, enabling real-time collaboration.
For companies scaling distributed teams, it’s an obvious win.
How Betternship Simplifies Hiring in Nigeria
Most EORs are built for global coverage; they work fine but lack local context.
Betternship is built for Africa.
We understand how Nigerian payroll, taxes, and HR compliance actually work on the ground, not just on paper.
Here’s what sets Betternship apart:
1. Africa-First Infrastructure
We’re built to help foreign companies hire across Africa easily through one platform
2. Payroll in NGN or USD
We support dual-currency payments, letting you pay talent in local or foreign currency depending on preference.
3. Full Legal Compliance
From tax deductions to pension, NHF, and NSITF, every hire through Betternship is legally registered and compliant with Nigerian law.
4. Transparent Pricing
No surprise mark-ups or hidden costs. You get one monthly invoice that includes salary, benefits, and EOR fees.
5. Local HR Support
Our local HR team ensures every hire has access to healthcare, payslips, and support. That builds trust and retention.
6. Access to Pre-Vetted Talent
If you haven’t found a candidate yet, Betternship gives you access to a curated network of pre-vetted Nigerian talent across tech, design, finance, and operations.
Essentially, Betternship is your legal entity, payroll engine, and local HR team; all in one.
EOR vs. Setting Up a Local Entity: Cost and Speed Comparison
| Aspect | Setting Up a Local Entity | Using Betternship (EOR) |
| Setup Time | 3–6 months | 7–10 days |
| Legal/Tax Registration | Complex and time-consuming | Fully handled by EOR |
| Compliance Risk | High (requires local expertise) | Low (EOR ensures compliance) |
| Cost | $10,000+ setup + ongoing filings | Pay per employee, no setup cost |
| Scalability | Slow | Instant, hire anywhere in Nigeria |
For most global startups and scaleups, using an EOR isn’t just convenient; it’s a financial advantage.
Key Legal Considerations When Hiring in Nigeria
If you’re hiring through an EOR, compliance is handled. But understanding the basics helps:
- Probation: Typically 3–6 months.
- Notice Period: 1 week (under 3 months service), 1 month (after 3 months).
- Leave: 12 paid days per year minimum, plus public holidays.
- Work Hours: 8 hours per day, 40 hours per week.
- Statutory Contributions: 8% employer pension, 2.5% NHF, 1% ITF, 1% NSITF.
Your EOR ensures every hire meets these standards, protecting both parties.
The Future of Global Hiring and Nigeria’s Role
By 2030, Africa will have the world’s largest working-age population. Nigeria alone will represent a major share of that growth.
For forward-thinking companies, entering this market early, with the right structure, creates a strategic advantage.
Employers of Record like Betternship make that possible.
We remove the barriers to hiring globally, letting small and large companies alike access world-class talent without needing a single office in Africa.
The companies that win in 2025 are the ones building global-first, locally-compliant teams.
Hire Nigerian talent through Betternship today!