7 essential tips for hiring remote & distributed teams in Nigeria

This article is a submission by Workforce Africa. Workforce Africa specializes in managed teams, offering professional, innovative, and comprehensive solutions for African expansion and talent needs.

Hiring remote and distributed teams in Nigeria presents an exciting opportunity for businesses to tap into a diverse, skilled, and cost-effective workforce.

However, successfully building and managing a remote team in Nigeria requires a thorough understanding of the country’s labor laws, payroll requirements, tax policies, working hours, and cultural dynamics.

With Nigeria’s digital economy growing rapidly, many skilled professionals now seek remote job opportunities, making it an attractive destination for companies looking to expand their global workforce.

This guide outlines seven key considerations to help you develop a strategic and compliant approach when hiring remote professionals in Nigeria.

1. Understand Nigeria’s labor laws and employment contracts

To ensure compliance and smooth hiring, employers must establish clear and well-structured employment contracts that align with Nigerian labor regulations.

These contracts should outline:

• Work hours and overtime terms
• Compensation structure and benefits
• Termination and severance policies
• Data protection and confidentiality clauses

While Nigeria’s Labor Act primarily governs blue-collar employees, many organizations also follow similar principles for white-collar professionals. For remote workers, contracts should explicitly define remote work expectations, availability, and digital collaboration guidelines.

Furthermore, businesses must ensure compliance with Nigeria’s National Information Technology Development Agency (NITDA) regulations, which govern how data is stored and transmitted digitally.

Failure to adhere to these laws can result in legal consequences, so it is essential to include cybersecurity and data protection clauses in contracts.

2. Set clear working hours and overtime policies

Nigeria’s standard workweek consists of eight-hour shifts, five days a week (40 hours total).

• Employees are entitled to a one-hour break for every six hours of work.
• The law mandates at least 24 consecutive hours of rest every seven days.
• Overtime is common in industries such as customer service and IT, but the Labor Act does not specify a fixed overtime pay rate, allowing employers to negotiate fair compensation.

For remote teams, it’s essential to set clear policies regarding work hours, time zone alignment, and overtime expectations to avoid burnout and ensure productivity.

One of the biggest advantages of hiring Nigerian remote workers is their flexibility in adapting to different time zones. Many professionals are willing to work overlapping hours with international teams, making it easier to integrate them into existing workflows.

3. Navigate payroll and taxation requirements

Employers hiring remote teams in Nigeria must comply with local tax regulations. Nigerian income tax is progressive, with rates ranging from 7% to 24% depending on earnings.

Key payroll considerations include:

• PAYE (Pay-As-You-Earn) system: Employers must deduct and remit income tax and social security contributions on behalf of employees to the appropriate State Internal Revenue Service (SIRS).
• Employees earning up to ₦70,000 per month (effective 1 May 2024) are exempt from taxation.
• While salaries must be paid monthly, there is no statutory requirement for a 13th-month salary.

To streamline payroll and tax compliance, many businesses partner with Employer of Record (EoR) services which handle tax filings, employee benefits, and local compliance on behalf of the company.

4. Ensure compliance with termination and severance policies

Under Nigerian labor law, employers can terminate contracts at any time, provided they adhere to the minimum notice periods:

• 3 months to 2 years of service: 1 week’s notice
• 2 to 5 years of service: 2 weeks’ notice
• 5+ years of service: 1 month’s notice

Alternatively, employers may provide payment in lieu of notice. If termination is unfair or unlawful, employees can pursue legal action before Nigeria’s National Industrial Court (NIC).

Employers must ensure that termination procedures are clearly outlined in employment contracts to prevent disputes and legal risks.

Additionally, severance pay is not mandatory under Nigerian law unless stated in the contract or company policy. However, offering a severance package can enhance employer reputation and employee goodwill.

5. Consider the role of cultural and business norms

Cultural awareness is crucial for seamless collaboration with remote Nigerian teams.

Key cultural factors include:

• Strong hierarchical work culture: Many Nigerian professionals value structured leadership and clear job roles.
• Emphasis on verbal communication: While written communication is essential, Nigerians prefer regular verbal check-ins and real-time discussions.
• Public holidays and religious observances: Nigeria observes both Christian and Islamic holidays, which should be factored into project timelines.

A Gallup workplace study found that companies that embrace cultural diversity and inclusion tend to have higher productivity, better employee retention, and improved problem-solving capabilities. Businesses that respect cultural differences will build stronger, more engaged teams.

6. Provide competitive compensation and benefits

To attract and retain top talent, businesses must offer competitive pay and benefits that align with Nigerian market standards.

• Average salaries: Compensation varies based on industry and experience. For example:
  • Software developers: ₦350,000 – ₦800,000/month
  • Customer service representatives: ₦100,000 – ₦250,000/month
  • Digital marketers: ₦150,000 – ₦500,000/month
• Common benefits:
  • Health insurance (HMO packages are widely expected)
  • Performance bonuses
  • Professional development support
  • Flexible work arrangements

Offering competitive pay, training opportunities, and work-life balance incentives can significantly improve talent retention and satisfaction.

7. Use reliable technology for remote collaboration and management

Managing a remote team in Nigeria requires robust digital infrastructure to facilitate seamless workflow, real-time communication, and performance tracking.

Recommended tools for remote teams:

• Project Management: Trello, Asana, Monday.com
• Communication: Slack, Microsoft Teams, Zoom
• Payroll & Compliance: Deel, Remote, Workpay

Additionally, having cybersecurity protocols in place ensures the safety of sensitive company data and maintains compliance with Nigeria’s Data Protection Regulations.

Scaling successfully with remote Nigerian talent

Hiring remote and distributed teams in Nigeria provides a wealth of opportunities for companies seeking skilled professionals, cost-effective solutions, and global expansion.

By understanding Nigeria’s labour laws, tax policies, cultural nuances, and technological infrastructure, businesses can build high-performing remote teams that enhance productivity, foster innovation, and drive long-term success.