Monthly statutory remittances for Nigerian employers: a checklist
Running payroll is only half the job. Every month, the deductions you take from salaries, and the contributions you make as an employer, have to reach the right authority with a schedule that shows who they belong to. Late or missing remittances attract penalties and interest, and they are the first thing an auditor or a tax officer checks.
The remittances at a glance
| Remittance | Who pays | Paid to | Usual deadline |
|---|---|---|---|
| PAYE | Deducted from the employee | The internal revenue service of the state where the employee lives | 10th day of the following month |
| Pension | Employee at least 8%, employer at least 10% | Each employee's Pension Fund Administrator, through the custodian | Within 7 working days of paying salaries |
| NHF | 2.5% of basic pay, deducted from the employee | Federal Mortgage Bank of Nigeria | Within one month of the deduction |
| NSITF | Employer, 1% of total monthly payroll | Nigeria Social Insurance Trust Fund | Monthly |
| ITF | Employer, 1% of annual payroll, where the law applies to you | Industrial Training Fund | Annually, by 1 April |
| NHIA | Depends on your scheme; often employee and employer shares | Your health insurance arrangement under NHIA | As your scheme requires |
Rates and deadlines change. Confirm the current rules for your company with your tax adviser, especially after the Nigeria Tax Act 2025 changes to personal income tax.
PAYE goes to the state where each person lives
PAYE is collected by state internal revenue services, not by the federal government. It is remitted to the state where the employee is resident, which is not always the state where your office is. A company in Lagos with staff living in Ogun pays some PAYE to the Lagos State Internal Revenue Service and some to Ogun.
That means you need each employee's state of residence on file, and one schedule per state every month, listing each person's name, tax identification number, gross pay and the tax deducted.
Pension goes to each person's PFA
Under the Pension Reform Act 2014, the employee contributes at least 8% and the employer at least 10% of monthly emoluments (basic, housing and transport). Contributions are sent with a schedule grouped by Pension Fund Administrator, showing each employee's RSA PIN. An employee without an RSA PIN cannot be credited, so collect PINs when people join.
A monthly routine that works
- Approve the payroll and pay salaries.
- Download one PAYE schedule per state, one pension schedule per PFA, and the NHF, NSITF and NHIA schedules.
- Fix anything flagged as missing: state of residence, TIN, RSA PIN or NHF number.
- Pay each authority and keep the receipt, RRR or bank reference.
- Record each payment against its schedule, so you can see at a glance what is still due.
At the end of the year
Employers file an annual return of employees' pay and tax deducted (Form H1) with each state tax authority, usually by 31 January for the year before. If you have recorded every month properly, the annual return is a summary of what you already have.
CAISE HR builds these schedules from each approved pay run, splits PAYE by state and pension by PFA, records what has been paid, and produces Form H1 and each person's tax deduction card.
This guide is general information, not tax or legal advice. Rules change; check your own position with a qualified adviser.