Nigeria's N70k minimum wage insufficient amid steep poverty - US govt

The United States government has raised doubts over the sustainability of Nigeria's new national minimum wage, expressing concern that the approved N70,000 benchmark is insufficient to lift citizens out of poverty due to the country’s worsening economic conditions.

This is according to its 2024 Country Reports on Human Rights Practices, released by the US Department of State’s Bureau of Democracy, Human Rights, and Labour on August 12, 2025.

Washington noted that the Nigerian minimum wage, valued at approximately $47.90 per month at the prevailing exchange rate of over N1,500 to the dollar, has been severely eroded by the continued depreciation of the naira.

While the report acknowledged that the National Minimum Wage (Amendment) Act 2024 doubled the wage from its previous level, it said enforcement remains weak across the country.

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The US also stated that the Nigerian government rarely ensure nationwide compliance with the minimum wage as some states have refused to implement the law, citing financial constraints.

“Many employers had fewer than 25 employees, so most workers were not covered,” the report noted, highlighting that the legislation applies only to firms with 25 or more full-time staff.

The report further noted that the minimum wage provisions don't cover part-time employees, seasonal agricultural workers, and workers on commission-based contracts.

The US observation also revealed that between 70 and 80 per cent of Nigeria’s workforce operates within the informal economy, where wage, hour, and occupational safety laws are largely unenforced.

According to the report, Nigeria has a gross inadequate number of labour inspectors to monitor compliance, leaving millions of workers vulnerable to exploitation.

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The assessment comes during a period when Nigeria is undergoing sweeping economic reforms, chiefly the fuel subsidy removal and exchange rate unification policies.

The two above-mentioned policies have created a deep hole in the citizens' pockets, following attendant sharp inflationary pressures and worsened the cost of living for ordinary Nigerians.