How to Start a Recruitment Agency in Nigeria

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Are you aware that the unemployment rate in Nigeria was found to have increased to 37.7% in 2022, it was further estimated to hit 40.6% in 2023 according to data by KPMG.

What does that tell you?

A huge opportunity abounds in the job recruitment industry in Nigeria, even without a rise in opportunities.

That said, are you looking for a viable business idea to invest in for a huge ROI, you probably were considering the job and recruitment industry but were in doubt about its viability and profitability.

If this feels like you, I think here's the best piece you'd ever come across on the internet about this topic.

Yes, I'm proud to say the idea you'll harvest in this guide is purely classified and premium, but you will read and learn how to grow and finance your business in Nigeria for free.

You will agree that the high cost of running businesses across levels has led to a decline in direct employment by the government, and corporate organizations.

The twist has led to a corresponding rise in the intake of outsourced and contract staff across organizations, it's considered cheap labor, as employers are looking to cut costs.

While this has been the trend, the recruitment agency has become more profitable than ever.


How recruitment agencies work

A recruitment agency is an outfit that haunts and recruits employees and then outsources such employees to potential employers on request.

The agency receives or earns a commission on each outsourced employee's salary or according to the agreed principle, or in-house arrangement.

Hope you are following the concept. Good.


How profitable is a recruitment agency?

Let me answer this question by citing a typical life experience.

While I was with my former employer, which happens to be one of the leading commercial banks in Nigeria, I was not employed directly by the bank, but rather by an outsourcing firm.

We had a workforce of over 6,000 outsourced staff nationwide.

Under the employee belt, my company employed over 3,500 of these outsourced employees myself included, we were under the bank teller cadre.

When I received the offer letter in 2014, my basic salary according to the offer letter was N100,000.00, but I and other colleagues received a uniform amount of N56,000 monthly as take home.

A salary that never took us home after all.



N100,000 “ N56,000 is equal to N44,000 naira.

N44,000 x 3,500 is equal to N154,000,000 monthly.

It stands that the company earns N44,000 on each of the members of staff in the outsource function every month.

This sums to a total of N154,000,000 (One hundred and fifty-four million naira) monthly before tax.

That's their revenue with just a single bank of 3,500 employees, imagine the numbers and deductions they have across 17 banks or more in Nigeria.

I don't know what more is referred to as too much money, you tell me.

Do you still ask if this business is profitable?

The answer is an open secret.


Who are your clients?

There's no limit to the number of clients you will have, they are everywhere, they include but are not limited to;

- Banks

- Schools

- Hospitals

- Factories/Companies

- Hospitality industry/hotels

- Eateries

- Corporate organizations looking for short and long-term employees for maybe roadshows

You also outsource employees like cleaners, security guards, factory workers, among professional staff.


How to start a recruitment agency in Nigeria

Let me walk you through the basics of getting started without wasting much time.

Do understand that you are expected to put certain modalities in place to have a smooth sailor.



1. Choose and register a business name: You are about to start operating a full-scale business, kindly set your right foot forward by meeting every regulatory requirement by law.

You will deal with corporate and organized businesses, so get your business registered.

2. Get an Attorney: Your business should have legal representation and backup just in case it becomes necessary, and yes, you never can tell what may come up tomorrow.

The Attorney will manage every aspect of the business that requires legal documentation and related accessories like drafting the guarantor's form, representing the business in court, etc.

3. Get an office: You will need to hire an office space with a specified address where you can easily direct your clients or potential job hunters.

Be certain that you may use the office space for conducting written and oral interviews in preparation for deployment.

4. Equip the office: You will need to equip the office with a few accessories like; desktop or laptop computers for documentation of employee records, printers, chairs, workstation tables, etc.

5. Create a business website: Operating a functional website is necessary for a functional business.

It doesn't just announce you, rather it provides an enabling home where potential clients and employees can check you out and see your possible services and milestones covered.

You should have categories with clear details of the services you offer, list clients you've worked with as well as their testimonies where applicable.

Where there are exceptional members of staff outsourced to any organization do not relent in publishing and highlighting their key achievements and milestones covered for the organization seconded to.

The website should come with a customized email address.

This is a promotional ideation that's sure to open doors for new businesses.

Categories and pages you will need to build in your website include but are not limited to

- About Us, tell what you do in concise and clear terms

- Contact Us, with your customized email address and phone number

- Our service, etc., tells more stories about your offers and clients you've worked with.

6. Get the guarantor's form ready: Your legal department should draft and make the guarantor's forms ready for applicants.

To second an employee to any organization, you should have a financially secured backup plan against such an employee.

In the event they are involved in financial recklessness or cause the organization a financial loss they could not manage, you can refer to the guarantors in such notice.

7. Print letter-headed papers: You should have letter-headed papers through which you can send out correspondences when necessary.

Now that you've met the basic requirements, the next thing you will need to do is to go out and pitch your potential clients with your business.


How to reach out to potential clients

Collect a list of businesses in your location that you are convinced need already-made employees from time to time.

- Schools, security guards, teachers, drivers, etc.

- Hotels, supervisors, cleaners, laundry men, waiters, drivers, securities, etc.

- Hospitals, cleaners, nurses, drivers, lab technicians, etc.

- Manufacturing companies, workers, drivers, supervisors, security guards, cleaners, etc.

- Microfinance/commercial Banks, tellers, secretaries, dispatch, cleaners, security guards, etc.

Just think about any organization and see the employee gap you can feel.

Tell them how your company is the best go-to for quality employees as your human resources is next to none.

Keep a date and continue to reach out for a possible business in the future. Be sure to leave your contacts on your letterhead paper.

Where you cannot reach a company via a physical office, kindly get their email address and phone numbers. Send out a soft mail inquiring to have their business, and follow up from time to time.

You should get your first business having reached out to 10 potential clients, and start building from there.

Discuss remuneration according to industry standards, and get the best offer for the employee.


Promotion and awareness

It's time to announce your arrival to both the clients and potential employees in town.

Run Facebook ads targeting potential employers and employees in town, and tell your stories.

Run gingles on radio and television, describe your business and location, and get ready to handle the teaming crowd from both ends.

Share flyers at business centers and events, use word of mouth to convey your message, and wait for employees and employers.


Employee enrolment

Conduct written and oral interviews with the potential employees, thereafter you proceed with documentation.

Be sure to give the guarantors form and define the class of guarantors therein, especially for employees who are looking to work with financial institutions and drivers who are exposed to funds and vehicles to wage against theft.

Note: Always interview and document employees beforehand, and have a list of candidates you will send to your clients in case of emergency.

Some clients will call in and demand you send potential employers without prior notice, be sure to always have a list of good names you can forward to them at short notice.

Do a background search on your employees, they should meet a character test.


Offer letter

Prepare the offer letter and state employee benefits like;

- Feeding allowance

- Wardrobe

- Transport

- Housing/accommodation

- Utilities

- Leave

- Bonuses,

- Basic salary, etc.

What next, the employee starts work, your company gets paid by the end of the month, then you pay the employee according to your company's discretion.

Remember to organize quarterly village meetings to interact with your employees, allow them to narrate their challenges, give a listening ear, and see how you can get some of them resolved with your clients being the main employer.



You can start a recruitment agency in Nigeria by following the above template, the ROI is quite high, and can only get better with time.

Maintain a good relationship with your clients, as well as the employees, give a listening ear when it has to do with staff welfare and see you at the top.

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