How to register as an employer for PAYE in Nigeria (TIN + state IRS)
A step-by-step guide to registering as an employer for PAYE in Nigeria — getting a TIN, registering with your state IRS, and the pension, NSITF and ITF sign-ups.
Before you can legally pay your first employee in Nigeria, you must register as an employer with the right authorities. Miss a step and you accumulate silent liabilities — unremitted PAYE, un-enrolled pensions — that surface later with penalties. This guide walks through every registration a new Nigerian employer needs, in order.
To employ staff in Nigeria you must: obtain a Tax Identification Number (TIN); register as an employer with the State Internal Revenue Service of the state where your employees work (PAYE is administered by the states, not federally); and complete the parallel statutory registrations — pension with a Pension Fund Administrator under PenCom, NSITF under the Employee Compensation Act, and ITF if you have five or more employees or ₦50M+ turnover. PAYE is then deducted monthly and remitted to the state IRS.
The registrations a Nigerian employer needs
| Registration | Authority | When |
|---|---|---|
| Tax Identification Number (TIN) | Nigeria Revenue Service / Joint Tax Board | On incorporation / before first hire |
| Employer PAYE registration | State Internal Revenue Service (e.g. LIRS) | Before first payroll |
| Pension (employer + employee RSAs) | Pension Fund Administrator, per PenCom | On hiring |
| NSITF (Employee Compensation Scheme) | Nigeria Social Insurance Trust Fund | On hiring |
| ITF | Industrial Training Fund | If 5+ staff or ₦50M+ turnover |
Sources: Nigeria Revenue Service; PenCom; NSITF; Industrial Training Fund.
1. Get a Tax Identification Number (TIN)
Everything starts with a TIN. A registered company is typically issued a TIN through the Corporate Affairs Commission (CAC) / Joint Tax Board process at incorporation, so you may already have one — check your incorporation documents. If not, apply through the Joint Tax Board / NRS. The TIN is the reference the tax authorities use for all your filings, so confirm it before you do anything else.
2. Register as an employer with your State IRS
This is the step new employers most often overlook: PAYE in Nigeria is administered by the states, not by the federal Nigeria Revenue Service. You register as an employer with the State Internal Revenue Service (SIRS) of the state where your employees are based — for example the Lagos State Internal Revenue Service (LIRS) for Lagos-based staff.
Typical requirements:
- Your CAC incorporation documents and TIN.
- Company details and address.
- An employer schedule listing your staff and their pay.
Once registered, the state issues you an employer identity for PAYE and you gain access to its e-filing portal for monthly remittances and annual returns. If your staff are spread across multiple states, you generally register in each relevant state (see the note on multi-state workforces in our state-PAYE guide).
3. Set up pension (PenCom / a PFA)
Under the Pension Reform Act 2014, employers in scope must operate the Contributory Pension Scheme. In practice:
- Each employee opens (or already has) a Retirement Savings Account (RSA) with a licensed Pension Fund Administrator (PFA).
- You register as an employer and remit the combined contribution — a minimum of 18% of Basic + Housing + Transport (employer at least 10%, employee at least 8%) — within seven working days of paying salaries.
Collect each new hire's PFA and RSA PIN as part of onboarding.
4. Register for NSITF
The Nigeria Social Insurance Trust Fund administers the Employee Compensation Scheme, which covers employees for work-related injury or death. Employers register and contribute 1% of monthly payroll (employer-borne). Register with NSITF when you take on staff.
5. Register for ITF (if in scope)
The Industrial Training Fund levy is 1% of annual payroll and is mandatory for employers with five or more employees, or ₦50 million or more in annual turnover. If you meet either threshold, register with the ITF and budget for the annual contribution; a portion can be reclaimed against approved staff training.
6. Run your first payroll and remit
With registrations in place, each payroll run you:
- Deduct PAYE from each employee and remit it to the relevant State IRS (typically by the 10th of the following month).
- Remit pension to the PFAs within seven working days of paying salaries.
- Set aside NSITF and ITF for their remittance cycles.
Keep the evidence of every remittance — it is your proof of compliance if any authority reviews your payroll.
Get the order right
The sequence matters: TIN first, then the state PAYE registration, then the pension/NSITF/ITF sign-ups before or as you hire. Doing them up front means your very first payroll is compliant, rather than discovering months later that you owe back-remittances plus penalties.
AnooreHR keeps every one of these obligations in one place: it computes PAYE for the correct state, tracks pension, NSITF, and ITF, and produces the schedules and remittance reports each authority expects — so a newly registered employer can run a fully compliant first payroll. Book a demo or sign up free to set up your employer profile.
Frequently asked questions
Frequently asked questions
Where do you register for PAYE in Nigeria?
What registrations does a new employer in Nigeria need?
Do I need to register in every state my staff work in?
Related: State PAYE in Nigeria: remitting to LIRS and other state authorities · How to run your first payroll in Nigeria · See pricing
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