Nigeria is emerging as an attractive outsourcing destination due to its cost-effective labor, growing tech ecosystem, and favorable time zone. Employers interested in hiring in the area may wonder, “What is the average salary in Nigeria?” This information will help them prepare a competitive job offer. 

The average monthly salary in Nigeria is 339,000 Nigerian Naira (NGN), about USD 220. However, you must also consider how salaries are affected by experience, education, location, position, and industry. Comparing salaries in the country to wages worldwide will also provide more insight. 

This guide will explore all aspects of salaries in Nigeria to prepare you for your hiring journey.

What is the Average Salary in Nigeria?

The average monthly salary in Nigeria is 339,000 NGN, or about $220. Wages in the country are low due to recession and economic instability, volatile oil dependence, and currency devaluation. There are also limited job opportunities and a dominant informal work sector. 

Nigeria Median Income

The median monthly income in Nigeria is the same as the average salary, 339,000 NGN. Half the country earns higher wages; the other half earns lower salaries. 

Salary Range

The salary range in Nigeria spans from the highest to the lowest. Low earners make around 80,000 NGN monthly (about $52), while high earners make closer to 11.5 million NGN, about $7845. 

Salary Comparison by Profession

Average salaries provide insight, but you must consider how wages vary based on profession, industry, location, experience, and education. The following sections will explore how these factors impact earnings:

PositionAverage Monthly Salary (NGN)
Chief Executive Officer1,221,610
Software Engineer934,149
IT Director849,607
Call Center Director862,994
Sales Director816,875
IT Architect732,202
Lead Developer714,838
Marketing Director704,717
Finance Manager654,016
Economic Manager644,841
Banking Cashier176,821
Fabric Cutter176,496
Clothing Technologist175,727
General Laborer174,667
Packer172,115
Seamstress164,328
Porter158,761
Social Counselor153,691
Tailor153,413

Average Wage in Nigeria by Education

Education plays a significant role in Nigeria’s wage determination. Many people in the country do not have access to free education, leading to unequal income distribution and high levels of poverty. 

Statistics show that the salary of a university graduate is about 12 times that of illiterate workers with no education and 4.5 times higher than that of a secondary school graduate. 

Salary Comparison by Experience

Experience is another factor that impacts salaries as follows:

Experience LevelSalary Increase Compared to Previous Tier
2–5 years+32%
5–10 years+36%
10–15 years+21%
15–20 years+14%
20+ years+9%

Salary Comparison by Location

Location also affects salaries as urban workers earn more than rural workers due to higher living costs and proximity to large companies offering more job opportunities. Here are the best states for Nigerian workers:

StateKey Industries & Opportunities
Lagos StateCommercial hub with multinational companies, tech startups, and top-tier private sector roles
AbujaCapital city with high-paying opportunities in government, international organizations, and finance
Rivers StateOil and gas powerhouse offering lucrative roles in energy and engineering
Akwa IbomEmerging industrial hub attracting talent across manufacturing and development sectors
Ogun StateFast-growing manufacturing sector with rising demand for skilled labor and managerial talent

How Much is Minimum Wage in Nigeria?

The minimum wage in Nigeria is 70,000 NGN (about $45 Nigeria minimum wage USD) per month. The last increase took effect in July 2024. Before that, the minimum wage was 30,000, established in 2019. 

Average Salary in Nigeria vs. the Rest of the World

To provide more insight, the following charts compare salaries in Nigeria to wages in developed, developing, and undeveloped countries. 

Nigeria vs. Developed Countries

CountryAverage SalaryComparison to Average Nigeria Salary
United Kingdom€3,000 (approx. $3,116)– 1,300%
United States$5,677– 2,500%
Norway50,790 NOK (approx. $4,700)– 2,036%
Germany€4,300 (approx. $4,467)– 1,945%
Austria€3,500 (approx. $3,636)– 1,536%

Nigeria vs. Developing Countries

CountryAverage SalaryComparison to Average Nigeria Salary
Romania4,000 RON (approx. $835)– 281%
Russia73,709 RUB (approx. $700)– 218%
Albania€1,500 (approx. $1,550)– 604%
Kazakhstan342,082 KZT (approx. $645)– 195%
Ukraine18,000 UAH (approx. $500)– 127%

Nigeria vs. Undeveloped Countries

CountryAverage SalaryComparison to Average Nigeria Salary
Thailand97,500 Baht (approx. $2,772)– 1,172%
Philippines18,423 PHP (approx. $875)– 300%
Vietnam8.5 million VND (approx. $360)– 63%
Egypt13,244 EGP (approx. $263)– 18%
Pakistan45,000 PKR (approx. $150)46%

Nigeria is a developing country with growth potential. Despite being Africa’s largest economy, it is limited in human development, infrastructure, and government. Although it has abundant natural resources, it faces challenges in translating them into generating income. 

Although the country faces internal issues, it offers great promise as an outsourcing destination. It provides cost-effective labor and a growing tech ecosystem, and its strategic location offers access to a large and growing African market. 

What are the Most Common Outsourced Industries in Nigeria?

Employers outsourcing to Nigeria will see the most significant benefits in the following industries.

IT Services

Nigeria’s IT industry has grown significantly in the past few years, especially in e-commerce and fintech. Lagos is emerging as a prominent tech hub, attracting investments and startups. The large and young population provides a pool of potential IT talent. 

A starting salary for an IT worker in Nigeria is about 400,000 NGN (about $260) monthly, while American workers earn closer to $5000, leading to significant cost savings for employers who outsource. 

Petroleum

Petroleum is Nigeria’s most important industry. It is one of the top ten global oil producers, and crude and petroleum products are some of the country’s biggest exports. They generate about 14% of the country’s GDP and account for approximately 83% of the government’s revenue. Statistics show oil deposits in the country can be as high as 35 billion barrels.  

Beyond being a popular export destination, companies can outsource various aspects of petroleum production, including back office functions, engineering and manufacturing, and supply chain logistics, to save costs. 

Agriculture

Agriculture is another significant industry in the Nigerian economy, accounting for around 18% of the country’s GDP. It produces about 8 million tons of oil palms annually for cosmetics, bioenergy, plastics, and other industries. It is also a major exporter of cocoa with the potential to produce over .3 million tons, although production is hindered by reliance on small-scale farmers. 

Companies may import crops from Nigeria and outsource specific production, management tasks, and specialized services. 

Conclusion

Nigeria’s vast resources, low-cost labor, and strategic location make it a promising outsourcing destination. Companies that partner with the country for remote work can take advantage of reduced expenses and exceptional products and services while helping workers overcome poverty, providing benefits for all involved parties.