US Says Nigeria’s N70,000 Minimum Wage Below Poverty Income Level

The United States government has said that Nigeria’s minimum wage of N70,000 was inadequate to lift millions of citizens out of poverty, citing weak enforcement and the effect of the naira’s sharp devaluation.

In its 2024 Country Reports on Human Rights Practices, released on August 12, 2025, the US Department of State said Nigeria’s minimum wage, currently valued at about $47.90 per month, falls below the poverty income level.

“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 further noted that wage enforcement across the country remains weak, with many workers excluded from the law.

“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. added.

On labour rights, the report observed that while the law mandated a 40-hour workweek, two to four weeks of annual leave, and overtime and holiday pay, it left gaps in defining premium pay and overtime. “The law prohibited excessive compulsory overtime for civilian government employees,” it said.

However, the US report criticised the Nigerian government’s capacity to enforce labor 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,” it noted.

The U.S. also highlighted institutional weaknesses, pointing out that the Ministry of Labour and Employment lacked the manpower to ensure compliance. “The Ministry of Labor and Employment was responsible for enforcement of wage, hour, and OSH laws, but the number of labor inspectors was insufficient to enforce compliance,” the report said.

While the law empowered labour inspectors to make unannounced visits and initiate sanctions, the report said most workers were required to file a complaint before the National Industrial Court of Nigeria.

It added that the situation was worsened by Nigeria’s huge informal sector. “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 stated.