Salary Expectations: What Software Engineers Can Earn

What is considered to be fair compensation is highly subjective, especially for Nigerians living in Nigeria. Different people will accept different offers based on different reasons. However, major tech companies have a benchmark for how much software engineers can earn. There isn’t a single public number, though. A fair compensation is determined by several factors.

Here are some key factors that determine salary benchmarks:

1.  Level of Experience: Engineers are often categorised into different levels based on their years of experience.

• Intern/Entry level: For those with no work experience at all
• Junior level: For those with 1-2 years of experience
• Mid/Intermediate Level: For those with 2-5 years of experience.
• Senior/Team Lead: More than 5 years of experience and leadership skills.
• Principal/Staff Engineer: Highly experienced technical leaders and strategists.

The level of experience is the most important factor in determining a fair salary. It helps the organization understand the kind of problems you can, and how quickly you can solve them.

2.  Specialization: A specialist in a particular area of engineering might command a higher salary than the general web engineer due to the possibility of their being able to solve specific bottleneck issues the company will be facing.

3.  Company size: The bigger the organization, the more they should be willing to pay to get the talents they desire. Different companies, according to their size, are:

• Startups: They are usually in their early stages with staff between 0 and 50. Depending on their level of funding, salaries at startups are highly variable. A well-funded startup may be willing to pay market value, while startups that are still at an early stage may be willing to complement a lower offer with equity.
• Established Tech Companies: Usually with more than 50 members of staff. They often pay in line with the local market standards, and can provide other benefits that the average startup cannot.
• International Companies with a Local Presence: They usually will pay in line with global standards, which will be significantly higher than what the local companies can afford to pay. Their salaries are benchmarked against those of their other international offices.

4.  Market Conditions: The overall market demand for software engineers plays a huge role. An increase in demand, both locally and for remote work, has driven up salaries. Companies are forced to raise their benchmarks to better compete for talent.

Based on current market data from other software engineers, these are the general salary ranges according to Payscale:

• Interns/Entry-level: A software engineer seeking to start a career in tech can earn between 100,000 naira and 150,000 naira.
•  Junior Level: With little over a year of experience, the salary can be between 150,000 naira and 200,000 naira
•  Mid/Intermediate Level: At this level, the salary can be between 250,000 naira and 500,000 naira
• Senior/Team lead: Between 500,000naira and 1,000,000naira is expected at this level
• Engineering Manager/CTO: Above 1,000,000naira

It’s important to disclose that these figures are guidelines, and offers may vary widely. Beyond the base salary, other benefits can also be used to attract talent with an overall compensation package that may include:

• Stock Options/Equity: This is usually common among senior roles, providing further incentive to drive company growth
• Health and Wellness Benefits: Health insurance, gym memberships, etc
• Remote Work Stipends: Allowances for internet, electricity, and home office setup.
• Performance Bonuses: Annual or quarterly bonuses on individual and/or company performances
• Learning and Development: Paying for online courses, certifications and conferences.
• In-Office Benefits: Providing daily breakfast/lunch, and company buses.

In conclusion, Nigerian tech companies have a clear, data-driven salary structure that is constantly evolving based on the factors listed above. Engineers should benchmark against market data, negotiate smartly, and weigh total compensation, not just base pay

Frequently Asked Questions

Should I accept an offer that is less than my salary expectation?

The decision to accept any offer should be based on what works for you at the time. These are guidelines, not necessarily the yardsticks. There are other factors to consider, including other benefits, learning experience and workload.

Does location affect salary?

Yes, it does. Locations like Lagos generally have more companies that are willing to pay more. This is a result of the cost of living and also the concentration of tech companies.

How do I negotiate a higher salary?

Research the market rates for your role and level of experience. When evaluating an offer, consider the entire package and not just the base salary. Clearly state your reasons if you want a company to improve their offer. Highlight your value and accomplishments, and suggest what you feel is more appropriate.