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The short answer
No Nigerian law sets a specific intern wage. Whether an intern must be paid depends on the arrangement: a student on an industrial training placement such as SIWES is usually not an employee, while a graduate "intern" who works set hours under the business's direction may be a worker entitled to the national minimum wage. A stipend paid to an intern who is an employee is employment income for PAYE.
Three different kinds of "intern"
The word covers arrangements that the law treats differently. Before deciding what to pay, decide which one you have.
| Type | Typical set-up | Likely status |
|---|---|---|
| Student industrial training (for example SIWES) | Placed by the student's institution as part of a course, for a fixed period | Trainee, not usually an employee of the host |
| Graduate intern or trainee | Hired directly, works set hours, does productive work | Often a worker under the contract |
| Volunteer or shadowing | Short, unpaid observation, no obligation to work | Not employment |
Student placements
SIWES is the industrial training scheme through which many Nigerian students spend a period in a workplace as part of their course. The placement is arranged with the student's institution, and the terms of any allowance are a matter for the institution, the scheme rules and the host. Ask the student's institution for its placement letter and any guidance, and record in writing what, if anything, your business will pay. Many hosts pay a transport or lunch allowance even where nothing is required.
Graduate interns and the minimum wage
Labels do not decide status. If a person is engaged to work regular hours, takes instructions, and does work the business would otherwise pay someone to do, a court is likely to see a contract of employment, whatever the offer letter calls it. The Labour Act applies to a "worker" as defined in section 91, which covers anyone under a contract of employment, oral or written, other than those in administrative, executive, technical or professional functions.
The national minimum wage is ₦70,000 a month under the National Minimum Wage (Amendment) Act 2024, signed on 29 July 2024. Paying a graduate intern below it is a risk if the intern is in fact an employee covered by the Act. Check the Act's coverage for your business size and sector, and do not assume the title "intern" removes it.
PAYE on intern stipends
If the intern is an employee, the stipend is an emolument. Section 51(6) of the Nigeria Tax Administration Act 2025 requires the employer to deduct income tax from any emolument it pays. Under the Nigeria Tax Act 2025, in force from 1 January 2026, the first ₦800,000 of annual taxable income is taxed at 0%, and employment income of a person earning the national minimum wage or less is exempt.
Worked example: a ₦50,000 stipend
Example only. A graduate intern in Enugu receives ₦50,000 a month for 12 months: ₦600,000 a year. That is below the ₦800,000 zero-rate band, and the monthly amount is below the ₦70,000 minimum wage, so no PAYE is due. The employer still includes the intern on its payroll records and in the annual return of emoluments due by 31 January; see filing the annual PAYE return.
A stipend paid to a student on a training placement who is not an employee is not salary in the usual sense; ask your state revenue service how it treats such allowances if the amounts are significant.
What to check first
- Is the person a student on a placement, or a graduate hired directly?
- Does the person do productive work on set hours under your direction?
- Have you put the terms, including any stipend and the end date, in writing?
- If the intern is an employee, have you added them to payroll for PAYE, and considered pension and NSITF?
- Are you paying at least ₦70,000 if the intern is a covered worker?
NSITF's 1% is calculated on total payroll, so a paid intern on payroll forms part of it; see NSITF registration. Pension under the Contributory Pension Scheme applies to organisations with three or more employees, according to PenCom's FAQ.
Writing an internship letter
A short letter avoids most disputes. It should state:
- Start and end dates, and whether the placement can be extended
- Hours and place of work
- The stipend or allowance, how often it is paid, and how
- The learning purpose and who supervises the intern
- Confidentiality and conduct rules
- Whether the internship may lead to an offer, without promising one
If the internship is in substance a job, it is better to say so and issue a fixed-term contract. Section 7 of the Labour Act requires written terms within three months of employment starting, and a fixed-term contract must state when it ends. A clear fixed-term contract also avoids later arguments that a long-running "internship" turned into permanent employment.
At the end of an internship, a short letter confirming the dates and the work done helps the intern with later job applications and gives you a record of when the arrangement ended.
Where Pryme fits
Interns can be paid alongside staff from a Pryme Business Account, with the stipend on its own line so it is easy to separate in reports. For hiring corps members instead, see hiring NYSC corps members, and for full employees, hiring your first employee.
Questions people ask
Is it compulsory to pay interns in Nigeria?
There is no specific intern wage law. A student on a placement may not need to be paid; a graduate intern working as an employee may be entitled to at least the ₦70,000 minimum wage.
How much should I pay an intern in Nigeria?
There is no fixed figure. If the intern is in fact an employee, pay at least the national minimum wage; otherwise agree a stipend in writing.
Do interns pay tax in Nigeria?
If the intern is an employee, PAYE applies, but stipends at or below the minimum wage, or within the ₦800,000 annual zero band, attract no tax under the Nigeria Tax Act 2025.
Do companies pay SIWES students?
Many pay an allowance, but terms depend on the institution, the scheme and the host. Put whatever you agree in writing.
Sources
- Labour Act, Cap L1 LFN 2004 (PLAC Laws of Nigeria) · accessed Oct 2026
- PaySpace: Nigeria National Minimum Wage (Amendment) Act 2024 · accessed Oct 2026
- Mondaq (Adeola Oyinlade & Co): Understanding Personal Income Tax under the Nigerian Tax Act 2025 (5 Jan 2026) · accessed Oct 2026
- Nigeria Tax Administration Act 2025 (Act No. 5), ss.14, 28, 31, 51, 65, 101-107 · accessed Oct 2026
- PenCom: Frequently Asked Questions (2023 edition) · accessed Oct 2026
This article is general information, not financial, legal or tax advice. Products described are provided under the terms on this site and are subject to regulation and eligibility.