WHAT IS THE AVERAGE SALARY IN NIGERIA? EVERYTHING YOU NEED TO KNOW
Computing the average salary in Nigeria doesn’t seem as difficult as some people may have thought. Although there are salary variations across Nigerian industries, we can arrive at a reasonable figure on the average salary in Nigeria.
Before we delve further into the discussion of Nigeria’s average salary, it is necessary to clarify that average salary is considerably different from minimum wage/salary. However, minimum wage is one of the crucial considerations for calculating a country’s average salary.
In this post, you’ll find out the (general) average salary in Nigeria, the average salaries of Nigerians in some top professions and the factors influencing salary progress/increment in Nigeria.
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What Is the Average Salary in Nigeria?
The average salary in Nigeria can be measured on a monthly or annual basis. While the salary of the Nigerian worker varies as a result of several factors, the average salary in Nigeria can still be calculated. To calculate such, we have to factor in not only the actual monthly/annual take-home but also the associated allowances/benefits.
In estimating the average salary in Nigeria, it is important to consider the minimum and maximum monthly salaries that workers get in the country. Based on findings, the minimum monthly salary a Nigerian worker gets (inclusive of transportation, housing and other benefits) is estimated around #63,054 while the maximum salary the Nigerian worker gets (inclusive of allowances and other benefits) is estimated around #2,062,823.
Given that #2,062,823 and #63,054 are the maximum and minimum monthly salaries respectively, we’ll arrive at the sum of #465,843 as the average monthly salary in Nigeria. If this average monthly salary is multiplied by 12, we’ll arrive at the sum of #5,590,116 as the average annual salary in Nigeria.
What Is the Average Hourly Wage in Nigeria?
In Nigeria, employers do not adopt the hourly mode in calculating or paying the wages of their employees. But given that #5,590,116 is the annual average salary, 8 hours is the average work duration daily while 5 is the number of working days weekly, it is very possible to calculate the average hourly wage of the Nigerian worker.
The simple formula for calculating the average hourly wage of the Nigerian worker is “average annual salary divided by the result of 52 x 5 x 8”. 52, in the given formula, represents the number of weeks in a year while 8 and 5 represent daily working hours and weekly working days respectively. Earlier, we arrived at an estimated annual average salary of #5,590,116. The result of 52 x 5 x 8 is #2,080. Dividing #5,590,116 by #2,080, we will arrive at #2,687.
Therefore, the average hourly wage in Nigeria is #2,687.
Depending on profession, location and other factors, variations are bound to exist in the monthly or annual salaries of Nigerian workers across sectors.
Average Monthly Salaries of Select Professions in Nigeria
- Hotel Manager (#697,589)
- Chief Executive Officer (#994,575)
- Sales Manager (#740,441)
- General Manager (#770,397)
- Journalist (#439,851)
- Internal Auditor (#455,859)
- Chief Financial Officer (#936,081)
- Attorney (#656,320)
- Electrical Engineer (#430,983)
- Dentist (#1,125,411)
- Pharmacist (#534,124)
- Pilot (#534,658)
- Human Resource Manager (#630,330)
- Creative Director (#456,768)
- Project Manager (#490,125)
Notably, the average monthly salaries listed above do not reflect what the random Nigerians in any of the given professions earn. They actually reflect the average values of the monthly earnings by top professionals across the respective Nigerian professions listed. For example, stating #439,851 as the average monthly salary of Nigerian journalists is never a justification that any random journalist in the country earns up to that amount on a monthly basis. In fact, there are many Nigerian journalists who earn much below that amount. What we can instead justify is that #439,851 is the average of what Nigerian journalists earn monthly.
Factors Influencing Salary Progress or Increment in Nigeria
Across virtually all industries in Nigeria, employees and/or professionals experience salary progress/increment. Generally, level of education and years of experience are the major factors that influence salary progress or qualify Nigerian employees for higher earnings.
Breakdown of salary progress based on level of education
In most sectors, an employee’s level of education is a key determinant of how much the employee stands to earn as income. This is why professionals/employees at the same level in a given organization may have varying income figures. In practice, employees with diplomas or certificates get an average of 17% increment above the salaries of counterparts with lower levels of education.
Similarly, those with BSc degrees are entitled to an average of 24% increment above the salaries of diploma/certificate holders. Whereas Master’s holders averagely earn 29% more than counterparts who didn’t acquire beyond BSc degrees, PhD holders are entitled to an average of 23% increment above the salaries of counterparts with Master’s.
As regards salary increment based on level of education, the percentages we’ve just mentioned may not apply to any specific job or profession in Nigeria. They are instead the averages realized from combining the increment percentages for different jobs or professions. Therefore, the actual percentage of salary increment can vary from one profession to another. To find out the exact percentage of salary increment that your level of education qualifies you for in a particular Nigerian industry, do well to search the Internet for veritable information.
Breakdown of salary progress based on years of experience
Across many industries, level of experience plays a vital role in employees’ eligibility for salary increment. In other words, an employee tends to experience salary increment as they gather more experience.
In Nigeria, employees with 2-5 year experience are remunerated better than new entrants and other counterparts below them. Averagely, such employees earn 32% more than those below them.
The salary progress doesn’t end there as more experienced employees, precisely those with more than 5-year experience, also earn more than counterparts with 5-year experience or below. Averagely, they earn 36% more than the closest employees below them.
Employees with 11-15 years of experience are usually entitled to an average of 21% increment above the salaries of counterparts closest to them in terms of level of experience. Beginning from more than 10-year experience, the salary increment tends to reduce in percentage and that is why employees with 16-20 year experience are entitled to an average of 14% increment above the salaries of their closest counterparts.
As regards salary increment based on years of experience, the percentages we’ve just mentioned may not apply to any specific job or profession in Nigeria. They are instead the averages realized from combining the increment percentages for different jobs or professions. Therefore, the actual percentage of salary increment can vary from one profession to another. If you intend to know the exact percentage of salary increment you’ll be entitled to in a particular Nigerian industry after a given number of years, do well to search the Internet for veritable information.
The long and short of this post is that #5,590, 116 is the average annual salary in Nigeria, #465,843 is the average monthly salary while #2,687 is the average hourly wage. Also, salary figures in Nigeria vary from one industry or profession to another, but in most cases, level of education and years of experience largely determine the percentage of salary increment that Nigerian employees are entitled to.