US Report: Nigeria’s Minimum Wage of N70,000 Insufficient to Alleviate Poverty Amid Currency Devaluation
Story: Written By Springnewsng August 20,2025
A recent U.S. government report has highlighted the insufficiency of Nigeria’s minimum wage to lift citizens out of poverty, especially in light of the country’s currency devaluation. According to the 2024 Country Reports on Human Rights Practices, the newly increased minimum wage of N70,000 (approximately $47.90) per month is no longer effective in meeting basic needs due to the weakened value of the naira.
The report points out that while the National Minimum Wage (Amendment) Act 2024 doubled the minimum wage, the effects of currency devaluation rendered the increase largely ineffective. The value of N70,000 has diminished significantly, and it is no longer above the poverty threshold. Additionally, enforcement of this minimum wage remains a challenge, with some states citing financial constraints as a reason for non-implementation. The report also highlighted the insufficient number of labor inspectors to monitor compliance.
Despite the law mandating a 40-hour workweek, annual leave, and overtime pay, many employers, especially those with fewer than 25 employees, are not obligated to adhere to the minimum wage law. The report reveals that between 70 and 80 percent of the Nigerian workforce operates in the informal economy, where wage and labor laws are rarely enforced.
The U.S. report also criticized the Nigerian government’s weak enforcement of labor laws, including those regarding wages, overtime, and occupational safety. Penalties for non-compliance were deemed too low to serve as a deterrent, and the Ministry of Labor and Employment’s capacity to enforce the law is limited due to the insufficient number of labor inspectors.
Moreover, the report outlined several restrictions on workers’ rights, including the difficulty of forming trade unions and the limitations on collective bargaining and strikes. For instance, new unions cannot be registered without at least 50 members, and penalties are imposed for organizing or joining unrecognized unions. Additionally, any collective wage agreement must be approved by the National Salaries, Income, and Wages Commission before becoming binding, further restricting workers’ rights to negotiate freely.
These challenges highlight the deep structural issues in Nigeria’s labor system, where economic constraints, inadequate enforcement, and limited protections contribute to the ongoing struggles of the workforce.
