Employee Benefits in Nigeria 2025
Description
Employee Benefits in Nigeria 2025
Summary
The report provides in-depth industry analysis, information, and insights of the employee benefits in Nigeria, including an overview of the state and compulsory benefits in Nigeria, detailed information about the private benefits in Nigeria, insights on various central institutions responsible for the administration of the different branches of social security and the regulatory framework of the employee benefits in Nigeria.
The Nigerian pension system has been facing much turbulence, regardless of the increase in the number of pensioners every year. The Nigerian pension system includes everyone from means-tested to private employees. Nigeria’s social security system is based on the principle of defined benefits (pay-as-you-go) and is generally managed by the state government. The social security system covers limited benefits and provides them based on the insured’s contribution period. Nigeria also has an informal social security system to which people can contribute voluntarily. In 2004, Nigeria adopted a Defined Contribution (DC) system, replacing the Defined Benefit (DB) system that was previously in existence. Under the replaced DB pension scheme, the paid pension amount depends on the number of years that an employee has worked for an employer and the total amount of salary earned. The whole pension system became and remains focused on the DC system.
Key Highlights
This report provides a detailed analysis of employee benefits in Nigeria-
Summary
The report provides in-depth industry analysis, information, and insights of the employee benefits in Nigeria, including an overview of the state and compulsory benefits in Nigeria, detailed information about the private benefits in Nigeria, insights on various central institutions responsible for the administration of the different branches of social security and the regulatory framework of the employee benefits in Nigeria.
The Nigerian pension system has been facing much turbulence, regardless of the increase in the number of pensioners every year. The Nigerian pension system includes everyone from means-tested to private employees. Nigeria’s social security system is based on the principle of defined benefits (pay-as-you-go) and is generally managed by the state government. The social security system covers limited benefits and provides them based on the insured’s contribution period. Nigeria also has an informal social security system to which people can contribute voluntarily. In 2004, Nigeria adopted a Defined Contribution (DC) system, replacing the Defined Benefit (DB) system that was previously in existence. Under the replaced DB pension scheme, the paid pension amount depends on the number of years that an employee has worked for an employer and the total amount of salary earned. The whole pension system became and remains focused on the DC system.
Key Highlights
- The Nigeria Social Insurance Trust Fund, National Pension Commission, National Health Insurance Authority, and Federal Housing Authority are responsible for the functioning of the overall social security system.
- A person’s national insurance contribution is determined based on their income.
- An insured person who is unemployed or unable to work and whose benefits have been exhausted is entitled to a credited contribution.
- In Nigeria, workers can opt to make AVCs which are made over and above their mandatory contributions. Voluntary coverage of CPS is also available to private-sector or employees of firms with up to two employees and a few excluded categories of workers under specific conditions.
This report provides a detailed analysis of employee benefits in Nigeria-
- It offers a detailed analysis of the key government-sponsored employee benefits, along with private benefits
- It covers an exhaustive list of employee benefits, including retirement benefits, medical benefits, workmen's compensation insurance, maternity and paternity benefits, leaves and holidays and private benefits
- It highlights the economic and regulatory situations relating to employee benefits in Nigeria
- Make strategic decisions using in-depth information related to employee benefits in the country
- Assess employee benefits of the market, including state and compulsory benefits and private benefits
- Gain insights into the key employee benefit schemes offered by private employers in the country
- Gain insights into key organizations governing employee benefits market, and their impact on companies
Table of Contents
37 Pages
- 1 Executive Summary
- 2 Introduction
- 2.1 What is this Report about?
- 2.2 Definitions
- 3 Country Statistics
- 4 Overview of Employee Benefits in Nigeria
- 5 Regulations
- 6 State and Compulsory Benefits
- 6.1 Retirement Benefits
- Introduction
- Eligibility
- Benefits
- Payment Options
- Contribution
- 6.2 Death in Service
- Introduction
- Eligibility
- Benefits
- Payment Options
- Contribution
- 6.3 Long-Term Disability Benefits
- Introduction
- Eligibility
- Benefits
- Payment Options
- Contribution
- 6.4 Medical Benefits
- Introduction
- Eligibility
- Benefits
- Payment Options
- Contribution
- 6.5 Workers’ Compensation Insurance
- Introduction
- Eligibility
- Benefits
- Payment Options
- Contribution
- 6.6 Maternity and Paternity Benefits
- Introduction
- Eligibility
- Benefits
- Payment Options
- Contribution
- 6.7 Other Benefits
- Leaves and Holidays
- 7 Private Benefits
- 7.1 Retirement Benefits
- 7.2 Death Benefits
- 7.3 Medical benefits
- 7.4 Disability Benefits
- 7.5 Accidental Death and Dismemberment Benefits
- 7.6 Other Benefits
- 8 About GlobalData
- 9 Contact Us
- List of Tables
- Table 1: Insurance Industry Definitions
- Table 2: Nigeria – Country Statistics, 2025
- Table 3: Nigeria – Workmen’s Compensation, Percentage of Disability
- Table 4: Nigeria – Fixed National and Public Holidays 2025
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