Africa Deployments provides payroll outsourcing services in Nigeria, managing PAYE remittance to State Internal Revenue Services, Contributory Pension Scheme (CPS) deductions, NSITF contributions, NHF deductions, and ITF levy compliance on behalf of businesses with Nigerian employees. Nigeria’s multi-layered payroll environment – spanning state-level PAYE, federal pension obligations, and multiple statutory levies – makes specialist payroll management essential for international companies operating in Africa’s largest economy.
Quick facts: Nigeria payroll at a glance
- PAYE: Progressive 7% to 24% on annual taxable income; state-level administration
- Contributory Pension: 10% employer + 8% employee of monthly gross emoluments
- NSITF: 1% of gross salary (employer-only)
- NHF: 2.5% of monthly salary (employee deduction)
- ITF Levy: 1% of annual payroll (qualifying employers)
- Federal minimum wage: NGN 70,000/month from July 2024
What Is Payroll Outsourcing in Nigeria?
Payroll outsourcing in Nigeria means transferring the calculation, administration, and statutory remittance functions of Nigerian payroll to a specialist provider. Africa Deployments’ Nigeria payroll service covers monthly PAYE calculation and state IRS remittance, Contributory Pension deductions and monthly PFA remittance within the 7-day window, NSITF and NHF administration, ITF levy calculation and annual payment, and payslip generation for Nigerian employees.
Unlike EOR or PEO services – where Africa Deployments acts as employer of record – payroll outsourcing applies to companies that already hold a registered Nigerian entity but want the payroll compliance function managed externally.
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 IRS filing |
| Contributory Pension | 10% employer + 8% employee of gross emoluments |
| NSITF | 1% of gross salary (employer-only) |
| NHF | 2.5% of monthly salary (employee deduction) |
| Annual leave | 6 working days minimum per Labour Act |
Payroll, Tax and Pension Compliance in Nigeria
The Federal Inland Revenue Service (FIRS) administers corporate tax and FCT PAYE in Nigeria, while each State Internal Revenue Service handles PAYE for employees working in its state. Monthly PAYE remittance deadlines are state-specific but typically fall within the first 10 days of the following month. The Pension Reform Act 2014 CPS remittance to a licensed PFA must occur within 7 working days of salary payment. NSITF contributions – 1% of gross salary (employer-only) – are remitted monthly. NHF deductions of 2.5% of monthly salary are remitted to the Federal Mortgage Bank of Nigeria. ITF levy of 1% of annual payroll is paid annually for qualifying employers.
Nigeria’s progressive PAYE bands – from 7% on income below NGN 300,000 per year to 24% on income above NGN 3,200,000 – include a relief on Consolidated Relief Allowance (CRA) of 20% of gross income plus the higher of 1% of gross income or NGN 200,000, which must be correctly applied to avoid over- or under-withholding.
Why Companies Choose Africa Deployments for Payroll in Nigeria
- State-level PAYE calculation and remittance across all 36 states and FCT
- Monthly Contributory Pension deductions and PFA remittance within the 7-day statutory window
- NSITF, NHF, and ITF contribution management and payment
- Consolidated Relief Allowance (CRA) calculations to ensure accurate PAYE withholding
- Nigeria payroll as part of Africa Deployments’ West Africa multi-country payroll platform
Frequently Asked Questions
How is PAYE structured in Nigeria?
Nigeria PAYE is progressive from 7% on annual taxable income below NGN 300,000 to 24% on income above NGN 3,200,000. Taxable income is gross income less the Consolidated Relief Allowance (CRA) of 20% of gross plus the higher of 1% of gross or NGN 200,000.
What is the minimum PAYE obligation in Nigeria?
Even where the standard PAYE computation produces a nil result, employees are subject to a minimum PAYE of 1% of gross income. This provision applies regardless of deductions and reliefs.
What is the Contributory Pension deadline in Nigeria?
Pension Reform Act 2014 requires CPS contributions – 10% employer and 8% employee – to be remitted to the employee’s chosen PFA within 7 working days of salary payment each month.
Does Africa Deployments handle multi-state Nigeria payroll?
Yes. Africa Deployments manages PAYE across multiple Nigerian states for employers with staff in several states, ensuring correct remittance to each State Internal Revenue Service.
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 structure, 7-day pension remittance window, and multi-levy compliance environment make it one of Africa’s most operationally complex payroll jurisdictions. Africa Deployments’ Nigeria payroll outsourcing service provides the state-by-state filing capability, CPS management, and statutory contribution administration that international businesses need to run Nigerian payroll accurately and on time.
Reviewed by: Africa Deployments Compliance Team
