Payroll outsourcing risks take spotlight in suit against Bloomberg in Nigeria

The dispute centres on alleged failures in remitting statutory employee contributions to Nigeria’s National Housing Fund (NHF), resulting in financial loss, legal action, and reputational risk. This white paper examines the legal issues raised in the case, explores the systemic risks of payroll outsourcing, and offers actionable recommendations for global companies.

Nigeria’s real estate surge driven by illicit financial flows

Nigeria’s real estate sector has surpassed petroleum in GDP contributions, reflecting economic diversification. Factors behind this boom include significant illicit financial flows and remittances. Despite economic contractions, real estate investments have thrived, with many properties remaining vacant. Government efforts to address the housing deficit face challenges regarding property rights and ownership transparency.

The Depositors’ Dilemma as Ponzi Schemes Beckon

With inflation said to be running at about 15 percent, a deposit of one million naira in January 2020 will earn 15,000 naira in interest after one year. It will also lose 150,000 naira to inflation, giving a net loss in value of 135,000 naira. When the effects of currency devaluation are factored in, the situation becomes even more dire.