Nigerian Compliance
What Nigerian Law Requires of an Employer
The obligations a Nigerian employer actually carries, and what HRMZY does about each. Every statutory figure links to PenCom, FIRS or the Act itself.
Pension: 10% employer, 8% employee
The Pension Reform Act sets a minimum of 10 per cent from the employer and 8 per cent from the employee. HRMZY’s payroll engine is configured with both rates and carries the two halves per employee. PenCom — PRA 2014, s.4
What the contribution is calculated on
Contributions are computed on a defined emolument base rather than on total pay. HRMZY separates pay components so the pensionable base is not taken from gross by mistake. PenCom — PRA 2014
Remit within 7 working days
Deductions must reach the pension fund custodian within seven working days of paying salaries. HRMZY keeps the contribution schedule with the pay run so the remittance is not assembled late. PenCom — PRA 2014, s.11
Group life insurance
Employers must maintain group life insurance for employees in addition to the pension contribution. HRMZY holds headcount and salary data the cover is sized from. PenCom — PRA 2014, s.4(5)
PAYE deducted at source
Employers must deduct tax from employee income and account for it. HRMZY’s payroll engine holds the applicable bands and applies them inside the pay run. FIRS — PAYE
PAYE remittance by the 10th
Tax deducted must be remitted to the relevant tax authority by the statutory deadline each month. HRMZY produces the per-employee record the remittance schedule is built from. FIRS — PAYE
Annual employer return by 31 January
Employers file an annual return of emoluments and tax deducted by 31 January. HRMZY holds a full year of per-employee pay in one place so the return is not rebuilt from monthly workings. FIRS — annual return
Nigeria Tax Act 2025
The 2025 tax reform legislation commences on 1 January 2026 and changes how employment income is taxed. HRMZY holds tax bands as configuration, so a change is made in one place rather than across payslips. Nigeria Tax Act 2025
Minimum-wage earners exempt
Employees earning the national minimum wage are exempt from PAYE under the new legislation. HRMZY holds the contractual rate per employee so the exemption can be applied to the right people. Nigeria Tax Act 2025
National Housing Fund, 2.5%
Contributions to the National Housing Fund are deducted from qualifying employees’ earnings. HRMZY configures it alongside the other statutory deductions in the same pay run. NHF Act 1992
NSITF employer contribution, 1%
Employers contribute to the Employee Compensation Scheme on the monthly payroll. HRMZY produces the payroll total the contribution is calculated from. NSITF — ECA 2010
ITF levy, 1%
Qualifying employers pay an Industrial Training Fund levy on annual payroll. HRMZY holds annual payroll totals so the levy base is not reconstructed by hand. ITF Act