US Says Nigeria Minimum Wage Falls Below Poverty Line

The United States has said Nigeria’s new N70,000 minimum wage is not enough to pull millions of workers out of poverty.

In its 2024 country report on human rights practices, released on August 12, 2025, the US Department of State noted that the value of the new wage, about $47.90 a month, has been weakened by the naira’s sharp devaluation.

The report explained that while the National Minimum Wage (Amendment) Act 2024 doubled the wage to N70,000, the increase failed to meet the poverty income level. It added that many employers were exempt because they had fewer than 25 workers, leaving a large number of Nigerians outside the wage protection system.

Some states have also refused to implement the law, citing lack of funds. The report stated that enforcement across the country remains weak. It observed that the federal government rarely ensured compliance with wage laws, overtime rules, and occupational safety standards.

The law provides for a 40-hour workweek, annual leave of two to four weeks, and overtime and holiday pay, though agricultural and domestic workers are excluded. However, the report pointed out that premium pay and overtime were not clearly defined, while excessive compulsory overtime was barred only for civilian government employees.

The US noted that penalties for violations were low and rarely applied, making them ineffective. The Ministry of Labor and Employment is tasked with enforcing the laws, but the number of inspectors was described as inadequate to cover the country.

The report also highlighted that between 70 and 80 percent of Nigeria’s workforce operates in the informal economy, where wage and safety laws are almost never enforced. It said most complaints required individuals to file cases at the National Industrial Court, which further limited workers’ access to justice.