The rule: no statutory rate, set by agreement
Nigeria's Labour Act (Cap. L1, LFN 2004) recognises overtime — section 13 deals with normal working hours — but it sets no statutory overtime rate and no fixed normal-hours figure. Both the normal hours and the overtime premium are determined by mutual agreement, a collective bargaining agreement, or your contract of employment. In practice many Nigerian employers and collective agreements pay around +50% (1.5x) for overtime, but this is a convention rather than a legal minimum.
What the law sets vs. what it leaves open
| Normal hours | By agreement (s.13) |
| Statutory overtime rate | None — by contract / CBA |
| Common practice | ~+50% (1.5x) |
Worked example
Enter your contractual or agreed rate in the calculator above. At ₦1,000/hour with a +50% rate, two overtime hours = 2 × 1,000 × 1.5 = ₦3,000.
Who to contact
Because the rate is contractual, a dispute is about whether the agreed rate and hours were honoured. Matters go to the Federal Ministry of Labour and Employment and, if needed, the National Industrial Court.
- Is there a statutory overtime rate in Nigeria?
- No — the Labour Act leaves the rate (and normal hours) to agreement or your contract.
- What is the common rate?
- Often around +50% (1.5x), by convention or collective agreement.
- How are normal hours set?
- By mutual agreement under section 13 of the Labour Act.
- What rate should I enter?
- The one in your contract or collective agreement.