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With a younger and educated inhabitants, speedy infrastructural improvement, and low labor prices, Nigeria is changing into a well-liked selection for outsourcing.
Nigeria has a median month-to-month wage of 339,000 Nigerian Naira monthly, which is sort of 774.75 US {Dollars} monthly (as per the change charges in October 2022).
Like some other nation, numerous components impression the wage construction in Nigeria, together with academic {qualifications}, metropolis, work expertise, and extra.
On this article, we’ll take a more in-depth take a look at the common wage in Nigeria, the way it compares to different nations, and the minimal wage within the nation. We’ll additionally talk about the 4 key advantages of outsourcing to Nigeria.
Let’s bounce straight in!
What’s the common annual wage in Nigeria?
The typical annual wage in Nigeria is 4,060,000 Naira (9338.27 USD).
Nigeria is taken into account to have a lower-middle-income economic system with a GDP of 45 trillion NGN (USD 102 trillion).
A. Median wage
Questioning how the median wage differs from the common wage?
The median wage refers back to the center wage worth, whereas the common wage divides the whole of all salaries by the variety of salaries thought of.
For instance, a chartered account earns 313,000 NGN, a software program engineer earns 410,000 NGN, and a medical physician makes 815,000 NGN. Right here,
- The typical wage is 512,666.67 NGN (313,000 + 410,000 + 815,000 / 3)
- The median wage is 410,000 NGN
Curiously, Nigeria’s median wage is similar as its common fundamental wage – 339,000 NGN monthly (USD 774.75).
Which means that half of the Nigerian inhabitants earns lower than 339,000 NGN, whereas the opposite half earns greater than 339,000 NGN on a month-to-month foundation.
B. Wage vary
Nigeria’s common wage vary ranges from 85,700 NGN monthly (USD 198.43), the bottom common, to 1,510,000 NGN monthly (USD 3,496.24), the very best common.
Notice: The common wage vary figures characterize the common minimal and most wage. The precise most wage and minimal wage might differ.
Now that you understand the common wage in Nigeria, you could marvel what the price of residing is for the common Nigerian employee.
A single individual’s month-to-month bills, with out lease, are about 196,126 NGN (USD 449.19).
C. Minimal wage
The minimal wage is the bottom remuneration an employer should pay an worker.
For Nigerian staff, the common minimal wage at present stands at round 30,000 NGN (69.17 US {Dollars}) monthly.
Subsequent, let’s take a look at the components that impression salaries in Nigeria.
4 key components that affect salaries in Nigeria
Listed below are the 4 central components influencing an worker’s paycheck.
1. Academic {qualifications}
Academic {qualifications} play a necessary function in figuring out salaries all over the world, together with in Nigeria. In response to wage explorer, right here’s how wage figures fluctuate in response to the {qualifications} of the Nigerian workforce:
- Workers with a certificates or diploma earn 17% greater than those that solely graduated highschool.
- With a Bachelor’s Diploma, an worker can obtain 24% greater than those that obtained a certificates or diploma.
- A post-graduate might earn 29% greater than these with a Bachelor’s Diploma.
- Ph.D. holders could make as much as 23% greater than these with a Grasp’s Diploma.
Notice: The adjustments in wage might fluctuate in response to the situation or meant profession.
2. Sector and job function
In Nigeria, the common fundamental wage differs considerably throughout numerous sectors like finance, IT, buyer care, and many others.
Salaries additionally fluctuate in response to particular job sorts (full-time, part-time, freelance, and many others.) inside every sector.
The Wage Explorer report exhibits that among the highest paying jobs, like dentists and medical doctors, belong to the healthcare sector. For instance, the very best paying job goes to surgeons who obtain a month-to-month revenue of 1,260,000 NGN (USD 2885.78)
Let’s check out the wage comparability of different jobs throughout the personal sector in Nigeria:
Job Title | Common Month-to-month Wage in Nigeria |
Dentist | 825,000 NGN (USD 1885.46) |
Medical Physician | 815,000 NGN (USD 1862.61) |
Chief Monetary Officer | 689,000 NGN (USD 1574.65) |
Lodge Supervisor | 624,000 NGN (USD 1426.10) |
Gross sales Supervisor | 599,000 NGN (USD 1368.96) |
Basic Supervisor | 565,000 NGN (USD 1291.26) |
Data Expertise Supervisor | 558,000 NGN (USD 1275.26) |
Human Assets Supervisor | 504,000 NGN (USD 1151.85) |
Challenge Supervisor | 412,000 NGN (USD 941.59) |
Software program Engineer | 410,000 NGN (USD 937.02) |
Petroleum Engineer | 346,000 NGN (USD 790.75) |
Electrical Engineer | 316,000 NGN (USD 722.19) |
Chartered Accountant | 313,000 NGN (USD 715.33) |
Mechanical Engineer | 302,000 NGN (USD 690.19) |
Pharmacist | 283,000 NGN (USD 646.77) |
Supply: salaryexplorer.com
Notice: The above salaries embrace an allowance and different advantages obtained on a month-to-month foundation.
3. Work expertise
A wage report generated by Wage Explorer exhibits that an worker’s beginning wage often doubles by the point they attain the ten years expertise milestone.
Right here’s a breakdown of how the common month-to-month revenue will increase with work expertise:
Years of Expertise | Wage Enhance (in share) |
2-5 years | 32% |
5-10 years | 36% |
10-15 years | 21% |
15-20 years | 14% |
20+ years | 9% |
Supply: salaryexplorer.com
Notice: These figures ought to solely be used as tips. Salaries might differ considerably primarily based on particular job titles.
4. Location
The typical wage differs from metropolis to metropolis. This is because of components corresponding to the price of residing and demand for work in a selected location.
Let’s check out the common salaries in key areas in Nigeria:
Location | Common Month-to-month Wage |
Lagos | 4,211,600 NGN (USD 9625.23) |
Kano | 4,032,100 NGN (USD 9215.00) |
Ibadan | 3,875,100 NGN (USD 8856.19) |
Kaduna | 3,648,200 NGN (USD 8337.63) |
Benin Metropolis | 3,469,900 NGN (USD 7930.14) |
Supply: salaryexplorer.com
The above components relating to wage information may also help you intend a wage construction and compensation finances for the Nigerian workforce.
Now that we’ve examined the 4 components that outline the nationwide common wage in Nigeria, let’s take a look at the wage increments within the nation.
The typical wage increment in Nigeria
The typical Nigerian employee will probably see a wage improve of roughly 8% each 19 months.
However what determines an worker’s wage increment?
The important thing components embrace efficiency and general contribution to the corporate’s success.
Nevertheless, this adjustments from individual to individual and particular person firm insurance policies.
Right here’s a take a look at the common increment Nigerian staff can obtain throughout completely different industries:
Trade | Common Annual Wage Increment |
Training | 8% |
Journey | 7% |
Data Expertise | 6% |
Banking | 5% |
Development | 3% |
Healthcare | 2% |
Power | 1% |
Supply: salaryexplorer.com
The typical hourly wage in Nigeria
In Nigeria, the common hourly wage (pay per hour labored) is 1,950 NGN (USD 4.47).
So how do you calculate the common wage per hour?
Hourly wage = Common yearly wage / (52 x 5 x 8)
Notice: The above calculation assumes that an worker labored 8 hours, 5 days every week for 52 weeks per 12 months.
Hourly wage calculation differs in response to the hours labored per week and trip allowance.
Common wage in Nigeria Vs. the world
In response to the World Financial State of affairs and Prospects (WESP) 2021 report by the United Nations, nations may be categorised into three financial zones:
- Developed economies
- Economies in transition
- Growing economies
Let’s see how these nations examine to Nigeria relating to common month-to-month wage:
A. Common salaries in developed nations
Nation | Common Wage Per Month | Comparability to Common Wage in Nigeria (in %) |
Nigeria | USD 774.75 | N/A |
Nice Britain | USD 8,092 | +165% |
United States | USD 7,900 | +164% |
Australia | USD 4,856 | +145% |
Norway | USD 4,769 | +144% |
Eire | USD 3,144 | +121% |
Supply: salaryexplorer.com
B. Common salaries in economies in transition
Nation | Common Wage Per Month | Comparability to Common Wage in Nigeria (in %) |
Nigeria | USD 774.75 | N/A |
Montenegro | USD 2,616 | +109% |
Georgia | USD 2,415 | +103% |
Russia | USD 1,677 | +74% |
Ukraine | USD 623 | +22% |
Albania | USD 804 | +4% |
Supply: salaryexplorer.com
C. Common salaries in creating nations
Nation | Common Wage Per Month | Comparability to Common Wage in Nigeria (in %) |
Nigeria | USD 774.75 | N/A |
Thailand | USD 2,587 | +107% |
South Africa | USD 1,718 | +76% |
Brazil | USD 1,641 | +72% |
India | USD 385.23 | +67% |
The Philippines | USD 758.27 | +2% |
Supply: salaryexplorer.com
5 key advantages of outsourcing to Nigeria
Though nonetheless an rising economic system, the outsourcing sector in Nigeria has lots of the required options to make it a well-liked Enterprise Course of Outsourcing (BPO) vacation spot.
BPOs in Nigeria at present supply high-value inbound and outbound companies to large telecoms, software program, and insurance coverage firms throughout Africa, the US, the EU, and Japan.
However what makes Nigeria a fascinating location for outsourcing?
Let’s try the 5 key advantages of outsourcing to Nigeria.
1. Giant, youthful expertise pool
Nigeria has one of many largest youth populations on this planet, with 65 million individuals between the ages of 10-24.
In 2018, the World Financial institution reported that Nigerian youth (aged 15-24) had a literacy price of 75%.
That is a lot larger than different African nations like Ethiopia (73%), the Central African Republic (38%), and Liberia (55%).
However that’s not all.
To make sure that younger Nigerians prosper, Nigeria has launched the Nigerian Youth Employment Motion Plan.
This plan, operating from 2021-2024, goals to handle youth unemployment. One of many essential facets of this plan is addressing labor provide by abilities improvement, coaching, and training.
2. Decrease labor prices
As we all know, the common month-to-month wage in Nigeria is 339,000 NGN (USD 774.75)
That is decrease than the common month-to-month wage in developed nations like the US, which is round USD 7,900 monthly.
To present a selected instance, the month-to-month wage of a mechanical engineer in Nigeria is about 302,000 Nigerian Naira (USD 689.36) which is low when in comparison with the US (USD 7,210).
This fashion, investing within the Nigerian workforce can lower your expenses, which can be utilized for different business-related bills like advertising and marketing, utilities, and enterprise charges (licenses, permits, and many others.)
3. Sturdy broadband connection & cloud communication know-how
In 2019, the Nigerian president put collectively a committee for the Nationwide Broadband Plan (NBP). The NBP plans to ship information obtain speeds throughout Nigeria with satisfactory protection for no less than 90% of individuals by 2025.
The NBP illustrates the Nigerian authorities’s dedication to creating the digital economic system.
That’s not all.
In response to LinkedIn, Nigeria already gives cloud-based, omnichannel options like Kasookoo Contact Centre. Such platforms enable organizations to supply outsourcing companies remotely.
This cutting-edge know-how eliminates the necessity for onsite workplace house and different infrastructure sometimes wanted to start out a enterprise/open an workplace.
4. Ease of doing enterprise
In response to a World Financial institution report known as The Nation, Nigerian states like Lagos and Kano have proven substantial enchancment of their ease of doing enterprise.
This may be seen by new reforms put in place to make beginning a enterprise straightforward. These new reforms enable employers to:
- Reserve a enterprise title in 4 hours.
- Register their firm inside 24 hours on-line.
- Apply for and obtain approval of a visa-on-arrival inside two days.
- File and pay taxes on-line.
On prime of that, the Nigerian federal authorities has launched a number of tax incentives to encourage funding in giant sectors of the economic system. Listed below are a few of these advantages:
- Tax holidays: Upon software, firms investing in particular industrial actions can obtain a tax vacation for 3 years.
- Rural location incentives: Tax reductions for firms working in rural areas (positioned no less than 20 kilometers from operating water and electrical energy).
- Fuel utilization incentives: Corporations within the gasoline trade obtain a tax-free interval for as much as 5 years.
Because of these efforts, Nigeria ranked 15 spots larger in 2020 than the earlier 12 months at 131 on the World Financial institution’s Ease of Doing Enterprise Index.
5. Variety of english audio system
In response to Statista, the official language of Nigeria is English, with about 60 million audio system.
This quantity trumps that of BPO big, the Philippines, which has round 36 thousand native English audio system. With a excessive variety of English audio system, Nigerian residents’ communication abilities are a giant plus for firms from English-speaking nations just like the US, UK, and many others.
Wrapping up
The typical wage in Nigeria remains to be one of many lowest in comparison with different nations, together with the Philippines, one other BPO heavyweight.
With a big youth inhabitants, excessive ease of doing enterprise, and good cloud communication infrastructure, Nigeria exhibits great potential to turn out to be a frontrunner within the outsourcing sector.
You need to use this information to see if Nigeria is the very best match for your enterprise and plan your technique accordingly.