The "Bond" Trap: Should You Sign a 2-Year Training Agreement in Nigeria?
In Nigeria, employment bonds (or "Training Bonds") are legal and enforceable, but only if the employer can prove they invested a specific, significant amount of money in your training. The National Industrial Court typically upholds bonds that are "reasonable" and "pro-rated." However, if a company asks you to sign a bond without providing any specialized training, or if the penalty is higher than the cost of training, it is often considered a "Restrictive Covenant" and may be voidable in court.
Good Bond vs. Bad Bond: Know the Difference
Not all bonds are evil. In industries like Aviation (Pilot training) or Banking (Graduate Trainee Schools), companies spend millions of Naira on you. It is fair for them to expect you to stay.
The "Good" Bond:
The Cause: The company sends you to Dubai for a 3-month certification costing ₦5 Million.
The Term: You must stay for 2 years.
The Exit: If you leave early, you pay back the pro-rated balance (e.g., if you leave halfway, you pay ₦2.5M).
The "Bad" Bond (The Trap):
The Cause: You undergo "on-the-job training" (shadowing a colleague) which costs the company nothing.
The Term: You must stay for 3 years.
The Exit: If you leave, you owe them ₦2 Million (which is more than your annual salary).
Verdict: This is likely unenforceable. It is designed to trap you in a low-paying role.
The "Pro-Rating" Rule: Your Exit Strategy
Never sign a bond that is Flat Rate. A Flat Rate bond means if you leave on Day 1 or Day 729 of a 2-year bond, you pay the full amount. This is unfair.
You must negotiate for a Amortized (Pro-rated) Bond.
Concept: The debt should reduce every month you work.
Example: If the bond is ₦2.4M for 24 months, the debt should reduce by ₦100k every month. By month 20, you should only owe ₦400k.
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3 Red Flags Before You Sign
"Guarantor" Harassment: Be careful if they ask for two guarantors (with landed property) to countersign the bond. This means they will harass your family if you quit.
The "Salary Deduction" Clause: Watch out for clauses that say they can withhold your final salary or pension to pay the bond. This is often illegal under the Pension Reform Act.
Indefinite Duration: A bond must have a start date and an end date. If it says "until the company recovers costs" without a date, do not sign.
Final Verdict
If you are desperate, you might sign anything. But remember: A bond does not stop you from quitting; it just makes quitting expensive. If a better job offers you double your salary, the new company might be willing to "buy out" your bond. Always ask.
Confused by the legal jargon? Download our "Contract Review Checklist" in the Resources!