US faults Nigeria’s N70,000 minimum wage, says it breeds poverty

The United States has assessed Nigeria’s new minimum wage of N70,000 as insufficient to lift citizens out of poverty, citing the impact of the naira’s steep depreciation and weak enforcement of wage laws.

In its 2024 Country Reports on Human Rights Practices released on August 12, 2025, the US Department of State noted that Nigeria’s minimum wage, worth roughly $47.90 per month, no longer meets the poverty threshold.

“The National Minimum Wage (Amendment) Act 2024 doubled the minimum wage to 70,000 naira ($47.90) per month. Despite the increase, currency devaluation meant the minimum wage was no longer higher than the poverty income level,” the report said.

The report added that enforcement of wage laws is poor and many Nigerian workers are left unprotected.

“The law provided for a national minimum wage for public and private sector employers with 25 or more full-time employees, with exceptions for seasonal agricultural workers, part-time workers, those on commission, and some others. Many employers had fewer than 25 employees, so most workers were not covered. Some states declined to implement the minimum wage law, citing financial constraints,” the U.S. noted.

The document also flagged shortcomings in labour rights protections. While Nigerian law mandates a 40-hour workweek, paid annual leave of two to four weeks, and overtime and holiday pay, it does not clearly define premium pay rates.

“The law prohibited excessive compulsory overtime for civilian government employees,” the report stated.

The US further criticized the Nigerian government’s ability to enforce labour standards.

“The federal government rarely effectively enforced minimum wage, overtime, and occupational safety and health (OSH) laws. Penalties were low and not commensurate with other crimes, such as fraud — and were rarely applied,” the report said.

The report pointed to staffing shortages at the Ministry of Labour and Employment.

“The Ministry of Labour and Employment was responsible for enforcement of wage, hour, and OSH laws, but the number of labor inspectors was insufficient to enforce compliance,” it said.

Although labour inspectors are authorized to make surprise inspections and impose sanctions, the report observed that workers often have to lodge complaints with the National Industrial Court before action is taken.

The situation is further complicated by Nigeria’s vast informal workforce.

“Between 70 and 80 per cent of the country’s working population worked in the informal economy. Authorities did not enforce wage, hour, and OSH laws and inspections in the informal sector or with part-time workers,” the US report concluded.