With a young and educated population, rapid infrastructural development, and low labor costs, Nigeria is becoming a popular choice for outsourcing.
Nigeria has an average monthly salary of 339,000 Nigerian Naira per month, which is nearly 774.75 US Dollars per month (as per the exchange rates in October 2022).
Like any other country, various factors impact the salary structure in Nigeria, including educational qualifications, city, work experience, and more.
In this article, we’ll take a closer look at the average salary in Nigeria, how it compares to other countries, and the minimum wage in the country. We’ll also discuss the four key benefits of outsourcing to Nigeria.
Let’s jump straight in!
What is the average annual salary in Nigeria?
The average annual salary in Nigeria is 4,060,000 Naira (9338.27 USD).
Nigeria is considered to have a lower-middle-income economy with a GDP of 45 trillion NGN (USD 102 trillion).
A. Median salary
Wondering how the median salary differs from the average salary?
The median salary refers to the middle salary value, whereas the average salary divides the total of all salaries by the number of salaries considered.
For example, a chartered account earns 313,000 NGN, a software engineer earns 410,000 NGN, and a medical doctor makes 815,000 NGN. Here,
- The average salary is 512,666.67 NGN (313,000 + 410,000 + 815,000 / 3)
- The median salary is 410,000 NGN
Interestingly, Nigeria’s median salary is the same as its average basic salary – 339,000 NGN per month (USD 774.75).
This means that half of the Nigerian population earns less than 339,000 NGN, while the other half earns more than 339,000 NGN on a monthly basis.
B. Salary range
Nigeria’s average salary range ranges from 85,700 NGN per month (USD 198.43), the lowest average, to 1,510,000 NGN per month (USD 3,496.24), the highest average.
Note: The average salary range figures represent the average minimum and maximum salary. The actual maximum salary and minimum salary may differ.
Now that you know the average salary in Nigeria, you may wonder what the cost of living is for the average Nigerian worker.
A single person’s monthly expenses, without rent, are about 196,126 NGN (USD 449.19).
C. Minimum wage
The minimum wage is the lowest remuneration an employer must pay an employee.
For Nigerian workers, the average minimum wage currently stands at around 30,000 NGN (69.17 US Dollars) per month.
Next, let’s look at the factors that impact salaries in Nigeria.
4 key factors that influence salaries in Nigeria
Here are the four central factors influencing an employee’s paycheck.
1. Educational qualifications
Educational qualifications play an essential role in determining salaries around the world, including in Nigeria. According to salary explorer, here’s how salary figures vary according to the qualifications of the Nigerian workforce:
- Employees with a certificate or diploma earn 17% more than those who only graduated high school.
- With a Bachelor’s Degree, an employee can receive 24% more than those who obtained a certificate or diploma.
- A post-graduate may earn 29% more than those with a Bachelor’s Degree.
- Ph.D. holders can make up to 23% more than those with a Master’s Degree.
Note: The changes in salary may vary according to the location or intended career.
2. Sector and job role
In Nigeria, the average basic salary differs significantly across various sectors like finance, IT, customer care, etc.
Salaries also vary according to specific job types (full-time, part-time, freelance, etc.) within each sector.
The Salary Explorer report shows that some of the highest paying jobs, like dentists and doctors, belong to the healthcare sector. For example, the highest paying job goes to surgeons who receive a monthly income of 1,260,000 NGN (USD 2885.78)
Let’s take a look at the salary comparison of other jobs across the private sector in Nigeria:
|Job Title||Average Monthly Salary in Nigeria|
|Dentist||825,000 NGN (USD 1885.46)|
|Medical Doctor||815,000 NGN (USD 1862.61)|
|Chief Financial Officer||689,000 NGN (USD 1574.65)|
|Hotel Manager||624,000 NGN (USD 1426.10)|
|Sales Manager||599,000 NGN (USD 1368.96)|
|General Manager||565,000 NGN (USD 1291.26)|
|Information Technology Manager||558,000 NGN (USD 1275.26)|
|Human Resources Manager||504,000 NGN (USD 1151.85)|
|Project Manager||412,000 NGN (USD 941.59)|
|Software 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)|
Note: The above salaries include an allowance and other benefits received on a monthly basis.
3. Work experience
A salary report generated by Salary Explorer shows that an employee’s starting salary usually doubles by the time they reach the ten years experience milestone.
Here’s a breakdown of how the average monthly income increases with work experience:
|Years of Experience||Salary Increase (in percentage)|
Note: These figures should only be used as guidelines. Salaries may differ significantly based on specific job titles.
The average salary differs from city to city. This is due to factors such as the cost of living and demand for work in a specific location.
Let’s take a look at the average salaries in key locations in Nigeria:
|Location||Average Monthly Salary|
|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 City||3,469,900 NGN (USD 7930.14)|
The above factors regarding salary data can help you plan a salary structure and compensation budget for the Nigerian workforce.
Now that we’ve examined the four factors that define the national average salary in Nigeria, let’s look at the salary increments in the country.
The average salary increment in Nigeria
The average Nigerian worker will likely see a salary increase of approximately 8% every 19 months.
But what determines an employee’s salary increment?
The key factors include performance and overall contribution to the company’s success.
However, this changes from person to person and individual company policies.
Here’s a look at the average increment Nigerian workers can receive across different industries:
|Industry||Average Annual Salary Increment|
The average hourly wage in Nigeria
In Nigeria, the average hourly wage (pay per hour worked) is 1,950 NGN (USD 4.47).
So how do you calculate the average wage per hour?
Hourly wage = Average yearly salary / (52 x 5 x 8)
Note: The above calculation assumes that an employee worked 8 hours, 5 days a week for 52 weeks per year.
Hourly wage calculation differs according to the hours worked per week and vacation allowance.
Average salary in Nigeria Vs. the world
According to the World Economic Situation and Prospects (WESP) 2021 report by the United Nations, countries can be classified into three economic zones:
- Developed economies
- Economies in transition
- Developing economies
Let’s see how these countries compare to Nigeria regarding average monthly salary:
A. Average salaries in developed countries
|Country||Average Salary Per Month||Comparison to Average Salary in Nigeria (in %)|
|Great Britain||USD 8,092||+165%|
|United States||USD 7,900||+164%|
B. Average salaries in economies in transition
|Country||Average Salary Per Month||Comparison to Average Salary in Nigeria (in %)|
C. Average salaries in developing countries
|Country||Average Salary Per Month||Comparison to Average Salary in Nigeria (in %)|
|South Africa||USD 1,718||+76%|
|The Philippines||USD 758.27||+2%|
5 key benefits of outsourcing to Nigeria
Although still an emerging economy, the outsourcing sector in Nigeria has many of the required features to make it a popular Business Process Outsourcing (BPO) destination.
BPOs in Nigeria currently offer high-value inbound and outbound services to big telecoms, software, and insurance companies across Africa, the United States, the EU, and Japan.
But what makes Nigeria a desirable location for outsourcing?
Let’s check out the five key benefits of outsourcing to Nigeria.
1. Large, youthful talent pool
Nigeria has one of the largest youth populations in the world, with 65 million people between the ages of 10-24.
This is much higher than other African countries like Ethiopia (73%), the Central African Republic (38%), and Liberia (55%).
But that’s not all.
To ensure that young Nigerians prosper, Nigeria has introduced the Nigerian Youth Employment Action Plan.
This plan, running from 2021-2024, aims to address youth unemployment. One of the crucial aspects of this plan is addressing labor supply through skills development, training, and education.
2. Lower labor costs
As we know, the average monthly salary in Nigeria is 339,000 NGN (USD 774.75)
This is lower than the average monthly salary in developed countries like the United States, which is around USD 7,900 per month.
To give a specific example, the monthly salary of a mechanical engineer in Nigeria is about 302,000 Nigerian Naira (USD 689.36) which is low when compared to the US (USD 7,210).
This way, investing in the Nigerian workforce can save money, which can be used for other business-related expenses like marketing, utilities, and business fees (licenses, permits, etc.)
3. Strong broadband connection & cloud communication technology
In 2019, the Nigerian president put together a committee for the National Broadband Plan (NBP). The NBP plans to deliver data download speeds across Nigeria with adequate coverage for at least 90% of people by 2025.
The NBP illustrates the Nigerian government’s commitment to developing the digital economy.
That’s not all.
According to LinkedIn, Nigeria already offers cloud-based, omnichannel solutions like Kasookoo Contact Centre. Such platforms allow organizations to offer outsourcing services remotely.
This cutting-edge technology eliminates the need for onsite office space and other infrastructure typically needed to start a business/open an office.
4. Ease of doing business
According to a World Bank report called The Nation, Nigerian states like Lagos and Kano have shown substantial improvement in their ease of doing business.
This can be seen through new reforms put in place to make starting a business easy. These new reforms allow employers to:
- Reserve a business name in four hours.
- Register their company within 24 hours online.
- Apply for and receive approval of a visa-on-arrival within two days.
- File and pay taxes online.
On top of that, the Nigerian federal government has introduced several tax incentives to encourage investment in large sectors of the economy. Here are some of those benefits:
- Tax holidays: Upon application, companies investing in specific industrial activities can receive a tax holiday for three years.
- Rural location incentives: Tax reductions for companies operating in rural areas (located at least 20 kilometers from running water and electricity).
- Gas utilization incentives: Companies in the gas industry receive a tax-free period for up to 5 years.
As a result of these efforts, Nigeria ranked 15 spots higher in 2020 than the previous year at 131 on the World Bank’s Ease of Doing Business Index.
5. Number of english speakers
According to Statista, the official language of Nigeria is English, with about 60 million speakers.
This number trumps that of BPO giant, the Philippines, which has around 36 thousand native English speakers. With a high number of English speakers, Nigerian citizens’ communication skills are a big plus for companies from English-speaking countries like the US, UK, etc.
The average salary in Nigeria is still one of the lowest compared to other countries, including the Philippines, another BPO heavyweight.
With a large youth population, high ease of doing business, and good cloud communication infrastructure, Nigeria shows tremendous potential to become a leader in the outsourcing sector.
You can use this guide to see if Nigeria is the best fit for your business and plan your strategy accordingly.
Latest data on Minimum Wages (NGN/Month)
Minimum Wages in Nigeria remained unchanged at 30000 NGN/Month (64.861 USD/Month) in 2023. The maximum rate of minimum wage for employees was 30000 NGN/Month and minimum was 18000 NGN/Month. Data published Yearly by National Bureau of Statistics.
In total, the national gross income amounted to 2,080 U.S. dollars in 2021. Gross national income (GNI) per capita is the total amount of money received by a country (regardless of whether it originates in the country or abroad) divided by the midyear population.What is a good salary in 2023? ›
If a worker works 52 weeks a year, this equates to a national annual salary of $51,168, up 5.1 per cent from the previous year. Any sum beyond that should be regarded as a good salary; however, this is not always the case.What is the average income in Africa 2023? ›
The average monthly salary in Africa is approximately 769 USD (US dollar), as per the exchange rates in April 2023. This is about 10 times lower than in the USA and UK with average salaries of 7,900 USD and 7,795 USD respectively. However, the average salary in Africa varies greatly from country to country.What is the average monthly salary in Nigeria USD? ›
Nigeria has an average monthly salary of 339,000 Nigerian Naira per month, which is nearly 774.75 US Dollars per month (as per the exchange rates in October 2022).What is a good monthly salary in Nigeria? ›
A person working in Nigeria will typically earn around 4,067,600 NGN per year, and this can range from the lowest average salary of about 1,028,300 NGN to the highest average salary of 18,121,700 NGN. These are average salaries for a person in Nigeria and include benefits such as housing and transport.What is the average middle class salary in Nigeria? ›
Our findings about the Nigerian middle class are summarised below: Their average monthly income is in the range NGN75,000-100,000 ($480- 645, or roughly $6,000-7,000 pa). The middle class make up about 23% of the Nigerian population, according to African Development Bank (AfDB) data.What is the upper class income in Nigeria? ›
The survey estimates that of the estimated 169 million people in Nigeria only 3.3 million people are classified as upper class (earning above USD 140,000 p.a.) whilst more than 49 million people earn less than USD 1,400 per annum (p.a.).What is the basic salary percentage in Nigeria? ›
Ideally, they use a reversed calculation method where a percentage of the salary and CTC is taken. The basic pay is usually 40% of gross income or 50% of an individual's CTC. Basic salary = Gross pay- total allowances (medical insurance, HRA, DA, conveyance, etc.)How much is 100K salary in 2023? ›
As of Jun 2, 2023, the average annual pay for a 100K A Year in the United States is $85,866 a year.
Middle class households here earn between $84,673 and $252,754.What is the average family income 2023? ›
Political Calculations' initial estimate of median household income in January 2023 is $80,440, an increase of $1,035 (or 1.3%) from the initial estimate of $79,405 in December 2022.Is Nigeria the richest country in Africa? ›
Top 10 Richest African Countries by Overall GDP (current PPP INT$ - World Bank)*: Ranked by GDP in current USD, Nigeria comes out as the richest country in Africa during the year 2021.Which African country has the highest average salary? ›
- Rabat, Morocco.
- Cape Town, South Africa. ...
- Tunisians workers walking on the streets of the capital.
- Nairobi City skyline. ...
- Algiers, the capital of Algeria.
- Windhoek - The Namibia's capital city.
- People walking on the streets of Botswana.
1 USD = 462.03126 NGN Jun 10, 2023 05:32 UTC.What is the average rent in Nigeria? ›
|Accommodation (monthly rent)|
|Three-bedroom apartment in the city centre||NGN 2,300,000|
|Three-bedroom apartment outside the city centre||NGN 1,100,000|
|One-bedroom apartment in the city centre||NGN 700,000|
|One-bedroom apartment outside the city centre||NGN 340,000|
Summary of cost of living in Nigeria: A family of four estimated monthly costs are 1,745.8$ (802,154.3₦) without rent. A single person estimated monthly costs are 486.4$ (223,485.4₦) without rent. Cost of living in Nigeria is, on average, 59.3% lower than in United States.How much is rent in Nigeria in US dollars? ›
|Average Restaurant Prices|
|Average Rent Prices|
|Apartment (1 bedroom) in City Center||$935.4|
|Apartment (1 bedroom) Outside of Center||$550.10|
|Apartment (3 bedrooms) in City Center||$2975.21|
With a big oil export economy, Petroleum Engineering is a sought-after career in the country. Petroleum Engineers earn, on average, ₦5,824,000 yearly. This is why petroleum engineers are some of the highest salary earners in Nigeria.Is Nigeria a low income country? ›
Nigeria is a multi-ethnic and culturally diverse federation of 36 autonomous states and the Federal Capital Territory. A lower middle-income country and Africa's largest economy and most populous country, Nigeria faces daunting development challenges.
The traditional upper class is made up of the members of the Nigerian chieftaincy system. The country's oldest continuously existing institution, the chieftaincy is the only class that is officially recognized by Nigeria's government.What is the average salary of a driver in Nigeria? ›
|0-2 Years||653,200 NGN|
|2-5 Years||+38%||903,500 NGN|
|5-10 Years||+42%||1,283,600 NGN|
|10-15 Years||+22%||1,560,800 NGN|
|15-20 Years||+6%||1,655,500 NGN|
On the contrary, national disposable income was seen to contrast by 2.52% in 2021 compared to 2020 figures. According to paylab.com, individuals between the ages of 25 and 34 years old in Nigeria collect a monthly salary between ₦66,000 and ₦350,000 depending on the type of job.What percentage of Nigerians are upper class? ›
Taking the upper class as an example, while this represents only 6% of the population, it is extraordinarily broad, income-wise, ranging from Aliko Dangote (the richest man in Africa) to mid-level managers at Ipsos Nigeria, for example.Is upper class the same as rich? ›
In the United States, the upper class, as distinguished from the rich, is often considered to consist of those families that have for many generations enjoyed top social status based on their leadership in society—also referred to as old money.What salary is considered upper? ›
Average expat salary in Nigeria is US$30,000. 12% of expat households in Nigeria are now earning more than US$250,000 per annum.Is 100k a good salary in Nigeria? ›
That depends on where you live and your lifestyle. Generally speaking, 100,000 Naira per month would be considered a good salary in Nigeria, but it could still be difficult to live comfortably in more expensive cities.Is 13th month pay mandatory in Nigeria? ›
13 / 14th Month Salary in Nigeria
There is no statutory requirement to pay the 13th or 14th month salary.
According to the Bureau of Labor Statistics (BLS), the national average salary in 2021 was $58,260. Although wages above the average could be seen as a good salary, there are no hard and fast rules regarding how to determine a good salary since there are many factors involved.
Earning more than $100,000 per year would put you well ahead of the median American household, which brings in $74,784 as of 2021. Assuming you're an individual without dependents, that salary would qualify you as upper class, according to three different definitions (Brookings, Urban Institute and Pew Research).What is the cost of living salary increase for 2023? ›
Each year, the Social Security Administration applies a COLA to payments made to those receiving Social Security and Supplemental Security income (SSI). For 2023, the COLA increase is 8.7%, which is significantly larger than the COLAs in recent years.What salary is upper middle class? ›
Many have graduate degrees with educational attainment serving as the main distinguishing feature of this class. Household incomes commonly exceed $100,000, with some smaller one-income earners household having incomes in the high 5-figure range.Is $25,000 a year middle class? ›
1) Standard Definition Of Middle Class
$25,000-$100,000 a year is what most would consider as a middle class income.
Is $40,000 a year considered middle class? According to Pew Research, a middle-class family of three makes between $56,000 and $156,000. Families of that size who bring in $40,000 a year would not be considered middle class. However, an individual making $40,000 a year would likely qualify as middle class.What is the average income for a black man in 2023? ›
As of May 31, 2023, the average annual pay for an African American in the United States is $79,025 a year.What is the average salary for a male in 2023? ›
|State||Annual Salary||Monthly Pay|
So while it's comforting to know that it's possible to live on $30,000 a year, it's also a good idea to aim higher and save more when you're young, because you can't know for certain what the future will cost and you may want some flexibility.How many millionaires are in Nigeria? ›
Conversation. Number of dollar millionaires in Nigeria down from 12,000 in 2017 to 9,800 according to the African Wealth report 2023. We have 4 billionaires in USD in Nigeria.Is Nigeria richer than Ghana? ›
Nigeria is the biggest economy on the continent; according to the World Bank, Nigeria's GDP is more than seven times the GDP of Ghana.
Lagos State, the economic and financial hub of Nigeria, is the third most populous city in the world, having a massive retail market that encourages manufacturing sector activities. In addition to being the richest state in Nigeria, Lagos State is also the fifth largest economy in Africa.Which country is the best financially in Africa? ›
Egypt has the highest number of billionaires in Africa, while Mauritius has by far the highest wealth per capita (average wealth per person) at USD 37,500, followed by South Africa at USD 10,880 and Namibia at USD 10,050.Which country has the lowest salary in Africa? ›
Cameroon has the lowest minimum wage in Central Africa, despite being the continent's driving force. Historically, the monthly Minimum Wage in Cameroon reached an all-time high of 63.2 USD per month in 2014 and an all-time low of 32.6 USD per month in 2001.What is the average salary in Kenya? ›
|Kenya Average Wage Earnings: PU: Agriculture, Forestry and Fishing (KES)||515,093.200 2021|
|Kenya Average Wage Earnings: PU: Manufacturing (KES)||1,041,861.600 2021|
|Kenya Average Wage Earnings: PU: Wholesale and Retail Trade, Repair of Motor Veh... (KES)||1,060,093.000 2021|
- Mauritius. According to the GPI, Mauritius is the safest country in Africa. ...
- Ghana. Ghana is the second safest country in Africa, according to the GPI. ...
- The Gambia. ...
- Botswana. ...
- Sierra Leone. ...
- Sudan. ...
- Central African Republic. ...
Africa's pre-Covid-19 top five performing economies are projected to grow by more than 5.5% on average in 2023-2024 and to reclaim their position among the world's 10 fastest-growing economies. These countries are Rwanda (7.9%), Côte d'Ivoire (7.1%), Benin (6.4%), Ethiopia (6.0%), and Tanzania (5.6%).Which country is growing the fastest in Africa? ›
Ensuring food security for Niger's rapidly growing young population is just as important for its national security.What is the average hourly wage in the US 2023? ›
In April 2023, the average hourly earnings of all employees in the United States was at 11.01 U.S. dollars. The data have been seasonally adjusted.How to make money in Nigeria 2023? ›
- Freelance Writing. Freelance writing is a great way to make money online, especially if you have a knack for writing. ...
- Social Media Marketing. ...
- Online Tutoring. ...
- Graphic Design. ...
- Event Planning. ...
- Personal Shopping. ...
- Photography. ...
For a Nigerian to break into the one percent population of the wealthy, it will now take a net worth of $70,000 (N28. 7 million), according to the latest Knight Frank Wealth Report.
Is 50 an Hour Good? Yes, $50 an hour is actually good pay. To put things into perspective, $50 an hour is almost seven times higher than the federal minimum wage. As of 2022, the Federal minimum wage is $7.25 per hour.Which country pays highest salary? ›
The top three countries on this list are Switzerland, Luxembourg, and Singapore, where citizens earn more than Rs. 4 lakh per month on average. Specifically, the average monthly salary in Switzerland is Rs. 4,98,567, in Luxembourg it is Rs.What does $100 dollars buy in Nigeria? ›
The average price of 4 bedroom houses for sale in Lagos is ₦90,000,000. The most expensive house costs ₦600,000,000 while the cheapest costs ₦26,900,000. There are 15,913 available 4 bedroom houses for sale in Lagos, Nigeria.How to earn $100 dollars a day from Nigeria? ›
- Earn Money by Watching Videos Online. ...
- Earn Money through Affiliate Marketing. ...
- Make Money by Playing Games. ...
- Publish E-books for Earnings. ...
- Work Remotely through Freelancing or Full-time Jobs. ...
- Blogging or Vlogging for Earnings. ...
- Become a Virtual Trainer.
GDP Growth Rate in Nigeria averaged 0.65 percent from 2010 until 2023, reaching an all time high of 12.12 percent in the third quarter of 2020 and a record low of -15.65 percent in the first quarter of 2023.How is most of the money earned in Nigeria? ›
The services sector - consisting of telecommunications, financial, and other services - is the largest sector in Nigeria and accounted for 52% of GDP in the third quarter of 2022.What is middle class income in Nigeria? ›
Our findings about the Nigerian middle class are summarised below: ▪ Their average monthly income is in the range NGN75,000-100,000 ($480- 645, or roughly $6,000-7,000 pa). ▪ The middle class make up about 23% of the Nigerian population, according to African Development Bank (AfDB) data.