What offer letter means
An offer letter is an offer of employment on stated terms, made in writing.
It names the position, the salary, the start date and usually the reporting line, and it asks the candidate to accept by signing and returning it.
Once accepted it can be a binding contract of employment, even where a fuller document was promised for later. That is the point most people miss on both sides. An employer who thinks the offer letter is preliminary, and a candidate who thinks the real terms are still to come, are both relying on something that may already bind them.
What it leaves out matters as much as what it says. Where the letter is silent on notice, leave, probation or benefits, the parties are left arguing about what was implied, and that argument surfaces at exit rather than at hiring.
How it is used
A serviceable Nigerian offer letter covers a fixed list.
Job title and a short description of the role. Reporting line. Start date. Salary, broken into basic and allowances rather than given as one figure, because pension and any gratuity are usually calculated on defined components. Pay frequency. Probation period and what happens at the end of it. Notice period on each side. Annual leave entitlement. Pension and any other benefits. Working hours and location, including whether the role is remote or hybrid. Confidentiality. Any conditions, such as satisfactory references, medical clearance or verification of qualifications. A deadline for acceptance.
Where the employer intends a fuller contract to follow, the letter should say so and say which document prevails.
For a candidate, the two questions worth asking before signing are how the salary is split, and what the notice period is on each side. Those two decide what your pension is built on and how easily either side can walk away.
Key features
- An offer of employment on stated terms, capable of becoming a contract on acceptance
- Should state role, salary breakdown, start date, probation and notice
- Conditions such as references and medical clearance should be expressed as conditions
- Silence on a term leaves it to be implied, which causes disputes later
- Often followed by a fuller employment contract, and the relationship between them should be stated
- Should carry a deadline for acceptance
How this works in Nigeria
Nigerian practice varies enormously, and offer letters range from a full contract in all but name to a single paragraph confirming a salary.
The short version is where the problems start. An employee working for three years on a one paragraph letter, with no notice provision, no leave entitlement and no probation terms, is in an uncertain position, and so is the employer.
The National Industrial Court has also changed what employers should want from these documents. Because a termination now needs a valid reason and a fair process, an employer benefits from having probation terms, notice provisions and a reference to the staff handbook recorded from the start.
One specific Nigerian practice to watch is the offer that is withdrawn after acceptance. Where a candidate has accepted and resigned from another job, withdrawal is a breach of the contract that acceptance created, and the candidate has a claim. Employers who treat offers as reversible until the start date are exposed.
Salary structuring is the other recurring issue. A package presented as a single figure leaves pension contributions and any gratuity calculation unclear, and that only becomes visible when the employee leaves.
Offer letter vs employment contract
Two documents doing overlapping work, and the difference is depth rather than legal status.
An offer letter offers the job. It is short, it covers the headline terms, and its job is to get an acceptance. Once signed and returned it can be the contract of employment, whatever anybody intended.
An employment contract sets out the full relationship. Duties, confidentiality, intellectual property ownership, restrictive covenants, disciplinary and grievance procedures, benefits in detail, termination and post termination obligations.
Most employers should issue both, with the offer letter saying that a full contract will follow and that it will govern. Employers who issue only an offer letter are relying on a document that was never designed to answer the questions that arise three years later.
For an employee, the practical point is the same: what you signed is what governs, so read the short document as carefully as you would read the long one.
Limits and risks
An offer letter is short by design, so it rarely covers intellectual property, restrictive covenants, disciplinary procedure or detailed benefits.
Where it conflicts with a later contract, the position depends on what the documents say about which prevails, and that is frequently unaddressed.
Conditions that were not expressed as conditions cannot usually be relied on. An employer who intended the offer to depend on references, but did not say so, may find the offer unconditional.
And a verbal offer accepted verbally can also bind. Employers who make offers on the phone and then reconsider are not protected by the absence of paper.
Worth knowing
Ask for the salary split between basic and allowances before you accept, and get it in the letter. Your pension contributions and any gratuity are usually calculated on defined components, so two offers with the same total can be worth noticeably different amounts.
Questions people ask
Is an offer letter legally binding in Nigeria?
It can be. Once accepted, an offer letter setting out the role, pay and start date can amount to a contract of employment, even where a fuller contract was promised to follow.
What is the difference between an offer letter and an employment contract?
An offer letter offers the job on headline terms. An employment contract sets out the full relationship, including duties, confidentiality, intellectual property, restrictive covenants and procedures. Most employers should issue both.
What should an offer letter contain?
Job title, reporting line, start date, salary split into basic and allowances, pay frequency, probation, notice on each side, leave, pension and benefits, hours and location, any conditions, and a deadline for acceptance.
Can an employer withdraw an offer after I accept?
Once you have accepted, a contract has usually come into existence, and withdrawal is a breach. Candidates who resigned from another role in reliance on the offer have a claim, so employers should treat acceptance as binding.
Why does the salary breakdown matter?
Because pension contributions and any contractual gratuity are usually calculated on defined components rather than on the total. Two offers with the same headline figure can be worth different amounts depending on the split.
What if my offer letter says nothing about notice?
The Labour Act minimums apply where you are within its scope, based on length of service. Outside that scope the position is uncertain and becomes an argument about what was reasonable, which is why it should be stated.