You’ve hired your first employee. Now the state tax office wants a PAYE Employer ID you don’t have.
Every milestone in Nigerian business comes with paperwork nobody warns you about. Most founders hit this wall the moment they try to run their first payroll.
The good news: PAYE registration is free, and it’s far simpler than the government websites make it look. Here’s exactly how to do it.
- What PAYE registration is, and why you need it
- Which state to register with
- Documents you’ll need
- The registration process, step by step
- State portals, timelines and costs
- Five mistakes that cost founders weeks
- After approval: what you’re signed up for
What PAYE registration is, and why you need it
PAYE (Pay As You Earn) registration gives you an Employer Tax ID. That ID lets you legally deduct income tax from employee salaries and remit it to the state.
Without it:
- You can’t legally process payroll
- Your employees can’t get tax clearance certificates
- Your business is exposed to non-compliance penalties
Registration costs nothing in most states. The real cost is the 2–4 weeks you’ll wait for approval, which is why it’s worth starting before you need it.
Which state to register with
This is the part the forms don’t explain clearly: you register where your employees work, not where your company is incorporated.
Company registered in Lagos but your developer works from Abuja? That employee’s PAYE goes to FCT-IRS.
Employees in three states means three registrations. There’s no single national portal for PAYE. For remote employees who move around, use their primary work location — where they spend most working days.
Documents you’ll need
Every state words it differently, but these five are universal:
- Certificate of Incorporation (CAC)
- Memorandum and Articles of Association
- Company TIN certificate (from FIRS)
- Employee register — names, salaries, start dates, even for one person
- Company bank account details
Some states also ask for director TINs, proof of business premises, a recent bank statement, or passport photographs of directors.
Worth doing: get certified true copies of everything. Some offices want originals, others want copies. Carrying both saves you a second trip.
The registration process, step by step
1. Verify your company TIN. Check it at the FIRS TIN verification portal and screenshot the result. No TIN yet? Get one from FIRS first — that adds 1–2 weeks.
2. Build your employee register. Full names as they appear on bank accounts, monthly gross salaries, start dates, and bank details. Even if the only employee is you.
3. Pick your method. Online is fastest (1–2 weeks) where the portal works — Lagos and Abuja are reliable. A physical visit takes 2–3 weeks. An agent charges ₦15,000–₦50,000 and handles it for you.
4. Complete the application. You’ll enter company details, nature of business, expected employee count, and estimated monthly PAYE. Keep the estimate realistic — a projection far above what you actually remit invites questions.
5. Submit and pay. Most states charge ₦0. Lagos charges ₦2,000. Keep the acknowledgment reference number you get back.
6. Wait for approval. Your Employer ID certificate arrives by email. Save it somewhere permanent — you’ll need it for bank account changes, loan applications and every future compliance check.
State portals, timelines and costs
The states with working online registration:
| State | Portal | Timeline | Cost | Contact |
|---|---|---|---|---|
| Lagos (LIRS) | etax.lirs.net | 7–14 days | ₦2,000 | taxpayer@lirs.gov.ng |
| FCT Abuja (FCT-IRS) | fctirs.gov.ng | 14–21 days | Free | info@fctirs.gov.ng |
| Rivers (RIRS) | rivtamis.riversbirs.gov.ng | 21–28 days | Free | info@riversbirs.gov.ng |
| Kaduna (KADIRS) | mytax.kadirs.kdsg.gov.ng | 14–21 days | Free | kadirs@kadirs.kdsg.gov.ng |
States without full online registration — you’ll visit the office or send an agent:
| State | Where to go |
|---|---|
| Edo (EIRS) | Benin office — eirs.gov.ng |
| Kano (KIRS) | Portal in development — kirs.gov.ng |
| Ogun (OGIRS) | Abeokuta office — ogetax.ogunstate.gov.ng |
For any state not listed, start at the Nigeria Revenue Service portal directory.
Five mistakes that cost founders weeks
- Registering in the wrong state. Company in Lagos, employees in Abuja, registration with LIRS. The registration isn’t transferable — you register again with the right state.
- Skipping TIN verification. An invalid or unverified company TIN gets the whole application rejected. Check it first.
- Incomplete employee data. Missing bank details or salaries that don’t match what you actually pay will send the form back.
- Documents older than six months. Several states want fresh certified true copies of your CAC documents.
- Using a personal email. Your approval certificate may only ever be sent to the address on the form. Use a business address more than one person can open.
After approval: what you’re signed up for
Once your Employer ID lands, you’re on the hook monthly. You must:
- Deduct PAYE from salaries every month
- Remit to the state by the 10th of the following month
- File returns even when no tax is due
- Keep payroll records, remittance receipts and annual reconciliations for audit
Under the current tax bands, employees earning under ₦66,667 a month (₦800,000 a year) pay ₦0 PAYE — but you still file.
This is where the actual work starts. Registration is a one-off afternoon. Monthly computation, remittance and filing is forever, and it’s where most small teams slip — a spreadsheet, a rushed transfer, a missed 10th.
Lint Payroll handles that part: PAYE computation, pension, NHF, payslips and remittance to the right state authority, in one run. It’s ₦500 per employee per payroll run, flat — no setup fee, no percentage cut, and the ₦50 disbursement fee is waived.
Set up Lint Payroll for your team
Rather talk it through first? If you’re not sure which state you owe, or you’re stuck mid-application, message us on WhatsApp and we’ll walk you through your setup. You can also email growth@lint.finance.
Frequently Asked Questions
How long does PAYE registration take in Nigeria?
Typically 2–4 weeks depending on the state. Lagos (LIRS) is fastest at 7–14 days, while Rivers and Cross River can take up to four weeks. Online applications move faster than physical office visits.
Can I register for PAYE before hiring employees?
Yes, and it’s smart to. Most states want a projected employee list with estimated salaries. Since you can’t legally pay salaries without an Employer ID, registering early saves you a delayed first payroll.
What happens if I register with the wrong state revenue service?
You register again with the correct state where your employees actually work. The wrong registration isn’t transferable, though you can keep it active if you plan to hire in that state later.
Do I need separate PAYE registration for contract staff?
No — genuine contractors handle their own tax. But if someone works fixed hours, uses your equipment and takes direct instructions, they’re legally an employee whatever the contract says. When in doubt, treat them as an employee.
How much does PAYE registration cost in Nigeria?
It’s free in most states. Lagos charges ₦2,000. The real cost is the 2–4 week wait and the time spent gathering documents.
Do I still file if none of my employees earn enough to pay PAYE?
Yes. Employees under ₦66,667 a month pay ₦0, but you still file a nil return every month. Skipping it counts as non-compliance even though no money is owed.
Last updated: 20 July 2026. Sources: Nigeria Revenue Service portal directory, FIRS TIN verification portal, and the Lagos, FCT, Rivers and Kaduna state revenue services.
Related on Lint
- Free PAYE Calculator (2026) See take-home pay, tax and pension in seconds.
- Lint Payroll Run salary, PAYE, pension and salary advances in one funded run.
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