The United States government has said Nigeria’s newly approved ₦70,000 minimum wage is insufficient to lift millions of Nigerians out of poverty, citing weak enforcement and economic realities that continue to undermine workers’ welfare.
In its 2024 Country Reports on Human Rights Practices, released on August 12, 2025, the U.S. Department of State highlighted how the devaluation of the naira has eroded the value of the new wage, pegging it at about $47.90 per month.
The National Minimum Wage (Amendment) Act 2024 doubled the minimum wage to ₦70,000 per month. Despite the increase, currency devaluation meant the minimum wage was no longer higher than the poverty income level,” the report stated.
The report further revealed that the law, which applies to employers with 25 or more full-time workers, leaves out large sections of the labour force, including seasonal agricultural workers, part-time staff, and those paid by commission.
The Ministry of Labor and Employment was responsible for enforcement of wage, hour, and occupational safety and health laws, but the number of labor inspectors was insufficient to enforce compliance,” the report added.
The State Department observed that between 70 and 80 per cent of Nigeria’s workforce operates in the informal sector, where inspections and wage enforcement are virtually absent.
While the law prescribes a 40-hour workweek, annual leave, and overtime pay, the U.S. report stressed that these provisions are often ignored due to poor oversight and the lack of effective enforcement mechanisms.
The findings add to concerns raised by labour unions in Nigeria, who argue that even the ₦70,000 wage does not reflect the rising cost of living and inflation, warning that many households remain trapped in poverty despite the adjustment.
