Payroll software in Nigeria
Payroll software in Nigeria
PayrollMaster Africa is payroll software for Nigerian employers. It calculates PAYE, pension, NSITF and health cover on every payslip, applies the National Housing Fund where an employee opts in, files PAYE with the correct State Internal Revenue Service, and pays staff in naira. Nigerian companies use it to stay compliant across states without tracking each state’s rules by hand.
Compliance
What must a Nigerian employer deduct from every payslip?
6 statutory items, collected by 6 different bodies. PayrollMaster calculates each one on the same payslip.
Nigerian employers pay monthly and remit to as many as five separate bodies. PAYE is administered by state revenue services rather than federally, so a company with staff in Lagos and Abuja files in both — from the same payroll run.
| Deduction | Authority | Paid by | Rate |
|---|---|---|---|
| PAYE Pay As You Earn | State Internal Revenue Service (e.g. LIRS in Lagos) | Employee | Annual: nil on the first NGN 800,000; 15% on the next NGN 2.2m; 18% on the next NGN 9m; 21% on the next NGN 13m; 23% on the next NGN 25m; 25% above NGN 50m. Employees earning NGN 70,000/month or less are exempt. Source · in force from 2026-01-01 Commonly misreported. The Nigeria Tax Act 2025 replaced the old PAYE ladder on 1 January 2026, and renamed the Federal Inland Revenue Service the Nigeria Revenue Service. The former graduated rates (7%, 11%, 15%, 19%, 21%, 24%) are no longer in force — but many sites still publish them, sometimes mapped onto the new thresholds, which produces a table that is wrong twice over. |
| Pension Contributory Pension Scheme | National Pension Commission (PenCom), via the employee’s Pension Fund Administrator | Employer + employee | 8% employee + 10% employer (18% combined minimum) of monthly emoluments — at least basic salary plus housing and transport allowance Source · in force from 2014 Commonly misreported. Set by section 4(1) of the Pension Reform Act 2014. PenCom’s own published FAQ still shows 7.5% — that is the superseded 2004 scheme, which the 2014 Act replaced when it raised the combined minimum from 15% to 18%. An employer may instead carry the whole contribution, in which case it must be at least 20%. |
| NHF National Housing Fund | Federal Mortgage Bank of Nigeria (FMBN) | Employee | 2.5% of monthly income. Compulsory for public-sector employees; voluntary (opt-in) for private-sector employees. Source · in force from 2023-02 Commonly misreported. Section 45 of the Business Facilitation (Miscellaneous Provisions) Act 2022 amended the NHF Act so that private-sector employees "may" contribute, where public-sector employees "shall". It is still widely described as compulsory for everyone. It is not — private-sector staff can opt out, and can reclaim what they already paid in. |
| NSITF Employee Compensation Scheme | Nigeria Social Insurance Trust Fund (NSITF) | Employer | 1% of total monthly payroll, employer-paid Source |
| NHIA National Health Insurance Authority cover | National Health Insurance Authority (NHIA) | Employer + employee | No single statutory percentage. NHIA’s formal-sector formula is 10% employer + 5% employee of basic salary; employers using an accredited private plan differ. Source · in force from 2022 |
| ITF Industrial Training Fund levy | Industrial Training Fund (ITF) | Employer | 1% of total annual payroll, for employers with 5+ staff or NGN 50m+ turnover. Remitted annually. Source |
Rates last reviewed 2026-07-14 against State Internal Revenue Services (and the Nigeria Revenue Service) and other official sources. Where a figure is widely misreported elsewhere, we say so above rather than leave you to find the contradiction yourself. Statutory rates change with every finance act — confirm current figures with a local practitioner before relying on them. PayrollMaster applies the current rates centrally, so your payroll run does not depend on this table being fresh.
What we solve
What PayrollMaster does for Nigerian payroll teams
Compliance is table stakes. What makes Nigerian teams switch is everything around it — the casual workers, the staff loans, the leave, and the questions that land on HR every payday.
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Multi-country payroll
One account, one process, and each market’s statutory rules kept current for you.
For Nigeria, that means PAYE, Pension, NHF, NSITF, NHIA, ITF applied on every payslip and filed with each state’s revenue service.
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Casual & gig workforce
Casuals paid correctly and compliantly, on the same run as everyone else.
Nigerian casual workers are checked against local minimum-wage floors, with sub-monthly PAYE and any withholding tax handled automatically.
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Payroll for accounting firms
Every client’s payroll in one place, switchable in a click, visible at a glance.
Manage Nigeria clients alongside the rest of your book, each on Nigeria’s own statutory rules.
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Statutory compliance
When the law changes, you do nothing — your next run is already right.
In Nigeria, PayrollMaster tracks PAYE, Pension, NHF, NSITF, NHIA, ITF and the each state’s revenue service filing calendar for you.
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Staff loans & advances
Loans issued, deducted and tracked to zero without a side spreadsheet.
Deductions run on the Nigeria payroll cycle and show on each employee’s Nigeria payslip.
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Employee self-service
The payroll questions stop reaching your inbox.
Nigerian employees see their statutory deductions itemised, on the phone they already own.
What we have
Everything in the Nigeria payroll platform
Fifteen areas, one system, for Nigeria. Not a feature list bolted on — the platform a payroll team actually runs on.
Payroll
Run a pay cycle end to end, at any size.
Payroll engine
A full pay run, calculated in one click.
Pay components
Any earning, deduction or contribution, your way.
Payslips
Payslips your way, delivered for you.
Approvals
One inbox for every sign-off.
Compliance
Statutory rules, returns and reports that hold up to an audit.
Statutory compliance
Statutory rules that update themselves.
In Nigeria, PayrollMaster applies PAYE, Pension, NHF, NSITF, NHIA, ITF and produces the returns each state’s revenue service expects.
Reports & analytics
The numbers your accountant asks for.
People
The whole employee record, leave and self-service.
Employee management
The whole employee record, in one place.
Leave & holidays
Leave balances that count themselves.
Employee self-service
The questions stop reaching your inbox.
Flexible workforce
Casual and gig payroll, loans and advances.
Casual & gig payroll
Casual and gig workers on the same platform.
Nigerian casual workers are paid against local minimum-wage floors, with sub-monthly PAYE handled correctly.
Loans & advances
Staff loans that reconcile themselves.
Platform
Integrations, agencies, security and the things that scale.
Accounting integrations
Payroll lands in the system you already run.
Multi-company & agencies
Run payroll for every client from one account.
Security & access
The most sensitive data you hold, treated that way.
Platform
Localised, branded and built to grow into.
Pricing in Nigeria
What does payroll software cost in Nigeria?
PayrollMaster is priced per employee per month and billed in Nigerian nairas (NGN). There is no setup fee, and statutory filing with State Internal Revenue Services (and the Nigeria Revenue Service) is included rather than charged per submission.
See all plansQuestions
Payroll in Nigeria: common questions
Does PayrollMaster file PAYE with the right Nigerian state?
Yes. Nigerian PAYE is administered by state revenue services, not federally, so PayrollMaster assigns each employee to their state of residence and produces a separate return for each — Lagos staff file with LIRS, Abuja staff with the FCT authority — from one payroll run.
Has Nigerian PAYE changed under the new tax act?
Yes. The Nigeria Tax Act 2025 took effect on 1 January 2026 and replaced the previous PAYE bands, and the Federal Inland Revenue Service is now the Nigeria Revenue Service. PayrollMaster applies the current bands; payroll spreadsheets built on the old table are now producing incorrect deductions.
How much does payroll software cost in Nigeria?
PayrollMaster is priced per employee per month and billed in naira. There is no setup fee and no separate charge for statutory filing, so a Nigerian company knows its payroll cost as a single per-head number rather than a base fee plus per-filing extras.
Can PayrollMaster pay Nigerian employees in naira?
Yes. PayrollMaster calculates net pay in naira and records each employee’s payment method — bank, mobile money, cash or cheque, with multiple accounts and salary splits — then tracks the status of every payment on the run. Payslips are generated and emailed in bulk, and no run is final without an authorised approval.
Run Nigerian payroll without the spreadsheet
Start free and run one real Nigeria month — the deductions, the payslips, and the filing that comes out of it. Compare it against whatever you use today before you switch anything.