Introduction to Employing Foreigners in Nigeria

Nigeria’s position as a leading economy in Africa makes it a frequent destination for foreign workers and expatriates. Whether bridging critical skills gaps, supporting multinational operations, or contributing to specialized projects, foreigners seeking to work in Nigeria must comply with a complex legal regime that spans immigration law, labour law, and tax law.

Failure to obtain the requisite approvals can expose employers and expatriates to sanctions, fines, and enforcement actions by the Nigeria Immigration Service (NIS), the Federal Ministry of Interior (FMI), the Federal Inland Revenue Service (FIRS), and other regulatory authorities. This article explains the process and legal requirements for expatriates to obtain work visas and permits in Nigeria and outlines the tax implications of expatriate employment, with references to statutory provisions and relevant jurisprudence. EMPLOYING FOREIGNERS IN NIGERIA EMPLOYING FOREIGNERS IN NIGERIA EMPLOYING FOREIGNERS IN NIGERIA

1.1 Immigration Act & Immigration Regulations

The primary legal regime governing entry, stay and employment of non-Nigerians in Nigeria is the Immigration Act and the Nigeria Immigration Service (NIS) Regulations. Under the Immigration Act, the Comptroller-General of Immigration is empowered to grant or refuse entry visas, residence permits and work authorizations for foreigners who intend to enter, reside, or work in Nigeria.[1]

The NIS also issues the Nigeria Immigration Service Regulations (NISR), which provide detailed procedures for various classes of visas and permits, including those for employment and business.[2]

Foreigners intending to work in Nigeria typically require two interconnected approvals:

1. An entry visa issued abroad by a Nigerian Mission (Embassy/High Commission); and
2. A temporary work permit/residence permit issued by the Nigeria Immigration Service upon arrival.

The most relevant categories include the Temporary Work Permit (TWP) and Subject to Regularization (STR) permit.[3]

2.1 Temporary Work Permit (TWP)

The Temporary Work Permit (TWP) is the most common instrument for foreign nationals who are entering Nigeria for short-term work assignments, consultancy services, or project-based roles lasting less than a year.

• Applicants typically arrive on an Entry Visa (Type “T”) obtained at a Nigerian Mission abroad;
• Upon arrival, they apply to the NIS for a TWP;
• The NIS issues the permit on terms linked to the duration of the employment contract or assignment; and
• Employers must sponsor the application, providing evidence of the need for expatriate expertise.[4]

A TWP is generally valid for six months, renewable subject to continued eligibility and approval, and often accompanied by a requirement to be registered with the NIS database.

2.2 Subject to Regularization (STR)

The Subject to Regularization (STR) status applies where a foreign national enters Nigeria on a temporary basis but is intended to remain and be employed on a longer-term basis. A typical scenario is when a foreign worker initially arrives on business or work visa but later seeks full employment.

STR is usually obtained after entry and requires:

• Application sponsored by the employer to the NIS;
• Evidence of existing contract or offer of employment;
• Confirmation that the employer has complied with statutory employment and immigration conditions, including expatriate quotas (where applicable).

Once STR status is approved, the foreign employee may obtain a Residence Permit (Subject to Regularization/STR) and then conduct legally permissible employment.

2.3 Quota System and Expatriate Restrictions

The Nigerian Labour Act 2004 does not specifically regulate expatriate employment quotas, but the National Policy on Education and various sectoral regulations (e.g., in oil & gas or banking) often require local content compliance before expatriate permits are granted. An employer must first secure an Expatriate Quota from the relevant government authority before sponsoring a foreign worker on an STR visa. The quota system is designed to regulate the number of expatriates a company may hire, ensure skills transfer to Nigerians, and justify the business need for foreign expertise.[5]

Quota applications involve submission of corporate, operational, financial and human resources documentation, and quotas are issued for specific positions. Employers that bypass the quota system risk penalties and difficulties in processing work visas and CERPAC applications. In practice, NIS and Government agencies may demand evidence that the employer could not fill the position locally before approving an expatriate slot.

• 3.0 PROCEDURE FOR OBTAINING WORK AUTHORIZATION

The typical steps involved in expatriate employment approval are:

1. Expatriate Quota Application – Employer applies to the Federal Ministry of Interior (FMI) for a quota position for the foreign worker, with accompanying corporate documentation and justification for hiring an expatriate rather than a Nigerian.
2. STR Visa Application – Once the quota is approved, the employer sponsors the expatriate’s STR visa application at a Nigerian mission abroad, submitting quota approval, employment contract, passport and supporting professional credentials.
3. Entry and CERPAC Application – Upon arrival, the expatriate converts their STR status into a CERPAC by applying to the Nigeria Immigration Service, which issues a combined residence and work permit card.
4. Temporary Work Permit (where applicable) – For short assignments, TWPs are processed based on specific project requirements without the quota requirement.

If a foreigner works in Nigeria without necessary immigration authorisation, employers and individuals can face fines, deportation orders and restrictions on future immigration applications.

3.1 Step-by-Step Process: IN

1. Visa Application at Nigerian Mission Abroad
   A foreign national intending to work must usually apply for a temporary work visa (T) or appropriate business visa. The application includes:
   • A valid passport;
   • Letter of invitation or employment contract;
   • Evidence of professional qualification and experience;
   • Evidence of sponsorship by the prospective Nigerian employer.
2. Entry into Nigeria
   Once the visa is granted, the expatriate enters Nigeria.
3. Application to NIS for TWP/STR
   The employer, through an immigration consultant or lawyer, applies to the NIS for issuance of the Temporary Work Permit or Subject to Regularization permit, attaching:
   • Application forms;
   • Employment contract;
   • Evidence of payment of fees;
   • Professional credentials and letters of competence.
4. Approval and Issuance of Permit
   The NIS reviews the application, possibly consulting relevant ministries (Interior, Police, etc.) and may issue the appropriate permit, often endorsed on the expatriate’s passport.

3.2 Documentation Requirements

Common documents include:

• Application form;
• Passport data page and visa page;
• Letter of sponsorship from employer;
• Employment contract;
• Academic and professional certificates;
• Evidence of payment of statutory fees.

The NIS may also require proof that the employer has registered with the relevant statutory authorities (e.g., CAMA, FIRS).

Once a foreigner secures approval to work in Nigeria, the next critical legal issue is taxation, governed by the Nigeria Tax Act (NTA) 2025 and related tax laws including withholding tax, personal income tax, and pension obligations.

4.1 Nigeria Tax Act, 2025

The NTA 2025 was signed into law on 26 June 2025 and is set to become effective from 1 January 2026.[6] The Act represents a comprehensive reform of Nigeria’s tax framework, replacing and harmonising multiple legacy tax statutes and establishing modern rules for income taxation, including individuals and non-residents.

Under the NTA 2025, individuals including expatriates who earn income in Nigeria from employment are generally liable to personal income tax on their Nigeria-sourced income, subject to residency and source rules set out in the Act. The Act also consolidates rules for withholding taxes, income categorisation, and obligations for employers to deduct and remit taxes appropriately under the law.

Employers engaging expatriates must ensure compliance with employer tax withholding obligations (such as PAYE), and foreigners are taxed according to their residency status and Nigerian income sourced in the country.

4.2 Withholding Tax on Foreign Income

Payments made to non-resident expatriates for services rendered in Nigeria may attract withholding tax at applicable rates under the Nigeria Tax Code Act, unless reduced by an applicable Double Taxation Agreement (DTA).[7] Where an expatriate earns income from within Nigeria that is paid abroad, the payer is obliged to withhold tax and remit to the appropriate tax authority.

4.3 Expatriate Employment Levy (EEL) 2024

In 2024, the Federal Government, via the Federal Ministry of Interior and the Nigeria Immigration Service, introduced an Expatriate Employment Levy (EEL) policy requiring employers of expatriate workers to pay an annual levy for each expatriate employed in Nigeria.

Under the EEL Handbook, employers were expected to pay USD 15,000 for expatriates at director level and USD 10,000 for other categories where expatriates have spent a cumulative 183 days or more in Nigeria within a fiscal year. The levy was not framed as a tax under an Act of the National Assembly but a government-mandated contribution tied to immigration regulation, aimed at promoting skills transfer and local workforce development.[8]

The EEL has faced controversy and pushback from employers, and its implementation was temporarily suspended in March 2024 to allow further stakeholder consultations.[9] The existence of the policy shows the evolving regulatory landscape for expatriate employment, blending immigration compliance and revenue measures.

While not incorporated into the NTA 2025 as a tax, the EEL Handbook sets out penalties for non-compliance, including fines (e.g., ₦3,000,000 for failing to file or register expatriate details) and potential criminal sanctions under the Immigration Act’s provisions for submitting false information.

READ ALSO: TERMINATION FOR MISCONDUCT IN NIGERIA.

5. LABOUR LAW CONSIDERATIONS: EMPLOYING FOREIGNERS IN NIGERIA

The Labour Act regulates employment conditions in Nigeria, affecting both Nigerian and foreign workers.[10]

Key considerations include:

• Equal treatment in terms of wages and conditions foreign workers must not be paid less than Nigerians in the same role (subject to contract terms).
• Statutory minimum wage and working conditions apply equally to foreign nationals.
• Immigration status must remain valid for the duration of employment, failing which the employment contract may be prejudiced.

Although the Labour Act does not specifically regulate expatriates, its general provisions on contracts, termination, and employee rights apply.

6. JUDICIAL PRINCIPLES & CASE LAW

While Nigeria has limited reported appellate case law specifically on work permits for expatriates, judicial principles in immigration and employment contexts offer relevant guidance:

6.1 Administrative Discretion and Judicial Review

In Director, Department of State Services v. Olisa Agbakoba, the Nigerian Supreme Court held that administrative powers, including immigration decisions, must be exercised within statutory authority and subject to principles of fairness and legality.[11] This means that expatriate permit refusals or cancellations could be subject to judicial review if there is procedural unfairness or powers exercised beyond the statute.

7. ENFORCEMENT RISKS FOR NON-COMPLIANCE

Employing a foreigner without proper immigration approval attracts sanctions under the Immigration Act, including: fines; deportation of the foreign national; imprisonment of offending employers; and blacklisting of companies.

Similarly, tax non-compliance (failure to deduct PAYE or withhold tax) exposes employers to penalties and interest under the NTA 2023 and related regulations.

Foreigners wishing to work in Nigeria must navigate a multifaceted statutory regime that includes immigration authorisation under the Immigration Act and Regulations, tax compliance under the Nigeria Tax Act 2025, and emerging administrative requirements such as the Expatriate Employment Levy (EEL). Each step from securing an expatriate quota to processing visas and CERPAC cards, to ensuring proper income tax treatment involves compliance with different statutes and regulatory processes. Employers and expatriates should therefore plan early, engage legal and immigration professionals, and document compliance at every stage to mitigate legal and financial risks associated with expatriate employment in Nigeria’s complex regulatory environment.

Understanding the coordinate legal regimes immigration, tax, and labour is essential for employers and expatriates alike. Failure to comply exposes both to regulatory sanctions and litigation risk. Where disputes arise from immigration decisions, Nigerian courts are willing to enforce statutory limits on administrative powers and ensure that executive actions align with statutory authority and fundamental legal rights.

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[1] Immigration Act Cap I1, Laws of the Federation of Nigeria (LFN) Section 8(1) on entry it the country for business purposes.

[2] Nigeria Immigration Service Regulations (NISR) 2017.

[3] https://immigration.gov.ng/info-center/temporary-work-permit-6-months-r11/

[4] Visa/permit sponsorship requirements are routinely included in NIS procedural manuals and Immigration Act guidance notes.

[5] Subject to Regularisation (STR) visas and CERPAC procedures described in official NIS guidance; process involves quota approval and CERPAC issuance.

[6] Nigeria Tax Act 2025.

[7] Double Taxation Agreements (DTAs) applicable provisions on royalties, employment income and withholding tax rates where bilateral treaties exist.

[8] The Expatriate Employment Levy (EEL) policy was introduced in 2024 requiring employers of expatriate workers to pay levies based on roles and length of stay; penalties for non-compliance are detailed in the EEL Handbook and linked to immigration law offences.

[9] The implementation of the EEL was temporarily suspended by government stakeholders pending further consultations.

[10] Labour Act (Cap L1 LFN 2004).

[11] Director, Department of State Services v. Olisa Agbakoba (1999) 3 NWLR (Pt. 595) 314.

Contributors

Lead Partner, EKO SOLICITORS AND ADVOCATES

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