Employee Benefits in Nigeria, 2022 Update - Key Regulations, Statutory Public and Private Benefits, and Industry Analysis

Employee Benefits in Nigeria, 2022 Update - Key Regulations, Statutory Public and Private Benefits, and Industry Analysis

Summary

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 a limited number of 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 DC system, replacing the 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. Now, the whole pension system is more focused on the DC system.

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.

Key Highlights

• The Nigeria Social Insurance Trust Fund (NSITF), National Pension Commission (PenCom), National Health Insurance Scheme (NHIS), Federal Housing Authority (FHA), 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 credited contribution.
• In Nigeria, employers provide voluntary retirement benefits to their employees through deferred annuity plans and AVC Schemes.

Scope

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, death in service, long-term disability benefits, Short-Term sickness benefit, 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.

Reasons to Buy

• 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