The United States government has declared that Nigeria’s N70,000 minimum wage is “inadequate” to lift workers out of poverty.
In its 2024 Country Reports on Human Rights Practices, released on August 12, 2025, by the US Department of State’s Bureau of Democracy, Human Rights, and Labour, Washington stressed that the minimum wage—currently valued at about $47.90 per month at an exchange rate of over N1,500 to the dollar—has been severely eroded by the naira’s depreciation.
The report observed that although the National Minimum Wage (Amendment) Act 2024 doubled the wage from its previous level, implementation and enforcement remain inconsistent across Nigeria. It noted that many states have yet to adopt the new wage, often citing financial constraints.
“Many employers had fewer than 25 employees, so most workers were not covered,” the report stated, pointing out that the legislation applies only to companies with 25 or more full-time staff. It also highlighted that seasonal agricultural workers, part-time staff, and those employed on commission-based contracts are excluded from the law.
According to the assessment, between 70 and 80 per cent of Nigeria’s workforce operates in the informal sector, where wage regulations, working hours, and occupational safety laws are rarely enforced. It added that Nigeria lacks adequate labour inspectors to ensure compliance, leaving millions of workers vulnerable to exploitation.
The findings come at a time when Nigeria is grappling with far-reaching economic reforms, including fuel subsidy removal and exchange rate unification. These policies have driven up inflation and deepened the cost-of-living crisis for ordinary Nigerians.
