Quick answer: Accept a resignation offer only if the package plus your savings covers your essential expenses for longer than a realistic job search, you have read the exit document and any release of claims, you know what you are owed regardless of the offer, and you would genuinely prefer to leave. If any of those is missing, negotiate or decline. In Nigeria, where redundancy pay is not fixed by law, the contract and the paperwork decide almost everything.

Last updated: October 31, 2026

Key takeaways

  • A voluntary resignation offer is a negotiated deal, not a legal entitlement. Nigeria has no general statutory severance, so the amount is whatever you agree.
  • Check whether it is truly voluntary. "Resign or be pushed out" is a different situation from a genuine choice.
  • Count your runway: package plus savings divided by your monthly essential expenses.
  • Read the release of claims, confidentiality and non-compete terms before you sign.
  • Resigning does not leave you without a cushion: Nigerian pension rules let you access part of your retirement savings after four months without a job.

Why This Decision Is Landing on More Nigerian Desks

On October 19, Moniepoint told engineering and product staff it was restructuring and offered affected employees five months' salary to resign voluntarily, with the window closing on October 23, according to TechCabal. In Branch's 2026 job cuts in Nigeria and Kenya, affected staff were offered at least four months of compensation (Legit.ng).

These offers are attractive because they arrive with certainty and cash. They are also risky because they ask you to make a major career decision quickly, often with incomplete information. This guide walks you through how to decide, using Nigerian law, Nigerian court decisions and practical numbers.

What Is a Voluntary Resignation Offer?

A voluntary resignation offer, also called a voluntary separation package, voluntary exit scheme or early retirement scheme, is a payment an employer offers you to leave by choice instead of being laid off or made redundant. It usually comes with a deadline and a document for you to sign.

It differs from redundancy in an important way. Section 20 of the Labour Act defines redundancy as an involuntary and permanent loss of employment caused by an excess of manpower, and sets out duties for the employer, including informing the trade union or workers' representative, applying "last in, first out" subject to merit, and negotiating redundancy payments in good faith (Labour Act, s. 20). When you choose to resign for a package, you are making a contract with your employer. The protections that apply to a redundancy may not apply in the same way, so you should not assume them. Ask a lawyer if the sum is large.

There is also no fixed formula to rely on. The International Labour Organization's EPLex database notes that Nigeria has no general statutory severance or redundancy pay, and that payments usually depend on the employment contract and sectoral collective agreements, often calculated from length of service and last salary (ILO EPLex).

Step 1: Find Out Whether It Is Truly Voluntary

Before you weigh the money, ask what happens if you say no.

If the alternative is a genuine restructuring, declining may leave you in a pool for redundancy or redeployment. Moniepoint says it will first look for suitable roles elsewhere in the business, and a redundancy process follows where none can be found (Innovation Village). Employees cited by TechCabal also said the company can reject voluntary exit applications from people whose skills remain important (Geeky Nigeria). So an offer is not always yours to take, and refusing is not always yours to keep.

If the alternative is "resign or be forced out," the situation is closer to constructive dismissal, which the National Industrial Court has recognised where an employee is pushed out by serious breach or unfair treatment (Mondaq). Resigning for a package may weaken that route, so get advice before you sign.

Do not assume a restructuring is unlawful just because it hurts. A Lagos judge in 2026 upheld Bayer Nigeria's reorganisation as genuine, yet still ordered the company to pay ₦3.298 million because it failed to comply with the contractual notice requirement (Lawyard). The lesson is that employers can restructure, and the process still matters.

Step 2: List Everything You Are Owed, and Everything You Are Offered

Separate what you already have a right to from what the package adds.

Already yours: unpaid salary, accrued leave pay if your contract provides for it, pension contributions, any earned gratuity or bonus, and proper notice or pay in lieu under the Labour Act: one day, one week, two weeks or one month depending on length of service (WageIndicator).

What the package adds: usually months of salary, sometimes health insurance, pro-rated bonus or support in finding a new job. In Branch's case, health insurance was maintained through the end of 2026 (Legit.ng).

Get the numbers in writing. Nigerian court cases show how disputes arise when terms are vague. The National Industrial Court ordered Access Bank to pay an ex-staff member ₦4.5 million partly because the bank could not show any memorandum or agreement explaining how severance or gratuity had been arrived at (NICN). In a redundancy dispute, the court ordered Lafarge Africa to pay about ₦15.1 million in outstanding severance benefits and to refund ₦1.5 million unduly deducted from the severance payment (NICN).

Tax: Under Section 50(1) of the Nigeria Tax Act, compensation for loss of employment is now exempt up to ₦50 million, and only the excess is taxed (PwC Tax Summaries). Ask whether your package is described as compensation for loss of employment, and confirm the treatment with a tax adviser.

Step 3: Calculate Your Runway

The most useful number is how long you can live on what you will have. One decision guide suggests adding the separation payment to your liquid savings and dividing by your monthly essential expenses, meaning rent, food, insurance, minimum debt payments and utilities, not the extras you could cut (SackHacks).

Here is an illustrative example, not data from any employer:

  • Package: five months at ₦400,000 a month = ₦2,000,000
  • Savings: ₦600,000
  • Monthly essential expenses: ₦350,000
  • Runway: ₦2,600,000 divided by ₦350,000 = about 7.4 months

Now compare that with a realistic job search. If your field is shrinking, or roles are scarce, assume the search may take longer than you hope, and leave a margin.

Your pension is a second cushion, but treat it as a last resort. Under Section 7(2) of the Pension Reform Act 2014, a person who resigns or is disengaged before the age of 50 and cannot secure another job within four months can withdraw up to 25 percent of the balance in their Retirement Savings Account (TheCable; BusinessDay). That is a safety net, but it dips into money meant for retirement, which is why advisers encourage people to avoid it where they can.

Step 4: Test the Market Before You Sign

The worst time to learn your market value is after you have resigned. Quietly check how employers in your field are hiring and paying before the deadline.

An offer already in hand from another employer, or even strong interviews, changes how you read the package.

Step 5: Read the Fine Print

The document you sign is as important as the amount.

Release of claims. Many exit agreements ask you to give up the right to bring claims against the employer. Nigerian law lets an employee waive rights, but the National Industrial Court may look into the substance of a waiver before enforcing it (Lexology). Commentary on Nigerian practice says waivers cannot override statutory labour protections, and only clear, voluntary, post-employment agreements supported by adequate consideration are likely to be upheld (CXC Global). Do not rely on a court to rescue you from a bad signature.

Confidentiality, non-disparagement and non-compete. Check how long they last and what they cover. Nigerian courts examine reasonableness: the Court of Appeal upheld a finding that a four-year non-compete clause in an MTN Nigeria contract was unreasonable (The Nigeria Lawyer). That does not mean yours will be struck down.

Deadlines and eligibility. A 2019 National Industrial Court decision involving First Bank shows the risk. A deputy manager who applied for a voluntary early retirement scheme with incentives lost his claim for terminal benefits after the court found he did not meet the eligibility conditions and applied outside the window, and treated his exit as a resignation (NICN). Confirm in writing that your application has been approved before you act on it, and confirm the terms that apply to you.

Ask the practical questions. A law firm's severance guide suggests asking about the deadline and possible extensions, how the amount was calculated and whether it is negotiable, what happens to benefits, whether accrued leave will be paid, what reference you will receive, and which claims you are releasing (Nisar Law Group). That firm is based in the United States, so use the questions as a checklist, not as a statement of Nigerian law.

Step 6: Negotiate

Most offers have room. Common items to ask for:

  • More months of salary, especially if you have long service
  • A later separation date if a bonus, benefit or milestone is close
  • Continued health insurance for a set period
  • Pay for unused leave and a pro-rated bonus
  • A written, neutral reference and agreed wording for how your exit is described
  • Written confirmation that all promises are in the signed document

Start by thanking the company and asking for time to review. Then put your requests in writing, tied to your service and results. A simple line works: "Thank you for the offer. I would like to discuss a few adjustments to reflect my years of service, including the notice period and continued health cover." If one request is granted, accept it graciously.

A Simple Decision Framework

Accept if you already wanted to leave, your runway comfortably exceeds a realistic job search, you have read and understood the release, and the package is clearly better than what you could expect later.

Negotiate if the offer is close but thin, an important item such as health cover or bonus is missing, or the terms are unclear.

Decline or pause if the offer would leave you with less than a few months of runway, you have no market prospects yet, you would be giving up legal rights you may need to use, or you are being pressured to decide faster than you can read the document.

If you stay, remember that declining is not a guarantee of safety. It can still be followed by redeployment or redundancy, and Section 20 procedures then apply to the process.

Frequently Asked Questions

Is a voluntary resignation package the same as redundancy pay? No. Redundancy under the Labour Act is involuntary and carries specific procedures, while a voluntary package is a negotiated agreement. Nigeria has no fixed statutory severance, so check your contract, collective agreement and the offer letter.

Can I negotiate an offer to resign? Yes, in most cases. Employers often prefer a mutually acceptable agreement, and the items most commonly negotiated are the amount, the exit date, benefits and the reference. Put requests in writing.

Is severance taxable in Nigeria? Under the Nigeria Tax Act 2025, compensation for loss of employment is exempt up to ₦50 million, with the excess taxable (PwC Tax Summaries). Confirm how your payment is classified.

Can I access my pension if I resign for a package? If you are under 50 and cannot find another job within four months, you can apply for up to 25 percent of your RSA balance under the Pension Reform Act 2014 (TheCable).

Can my employer reject my application to leave voluntarily? It can in some cases. Employees cited by TechCabal said Moniepoint can reject applications from people whose skills are still needed (Geeky Nigeria). Do not hand in a resignation before you have written approval.

Should I sign a release of claims? Only after reading it and understanding what you are giving up. Have a labour lawyer review it if the sum is meaningful, and ask for changes to anything vague.

The Bottom Line

An offer of money to resign is neither a gift nor a trap. It is a trade: you give up your job, and possibly some rights, for cash and certainty. The right choice depends on your runway, your market, the paperwork and how much you want to leave. Count the months, read the release, get every promise in writing, and ask for time before you decide.

If you would rather stay, protect yourself too. Keep your CV current, keep records of your work, and watch how decisions are made, as we explain in Employees Don't Quit Jobs; They Quit Managers. And once you have decided, keep your reaction private, because recruiters notice what you post, as covered in Delete This Before Your Next Interview.

This article draws on the Labour Act, the Pension Reform Act 2014, the Nigeria Tax Act 2025 as summarised by PwC, National Industrial Court decisions and press releases, Nigerian legal and business commentary, and TechCabal reporting on the Moniepoint restructuring, current as of October 31, 2026. It is general information, not legal, tax or financial advice. Court outcomes depend on individual facts, some cited decisions are older or at first instance, and some sources are US-based general guides used only for checklists. Consult a labour lawyer, tax adviser or pension fund administrator before signing any exit agreement, and verify any specific figure against its linked source.