A report from the United States government has concluded that Nigeria’s national minimum wage of 70, 000 Naira remains inadequate to lift millions of citizens out of poverty.
The assessment appeared in the US Department of State’s 2024 Country Reports on Human Rights Practices, released on August 12, 2025.
The document emphasised that the monthly wage, currently valued at approximately $47.90, has been significantly eroded by the ongoing devaluation of Nigeria’s currency.
The report noted that despite the recent increase from the previous minimum wage, the current rate fails to surpass the poverty income threshold due to economic conditions.
It further highlighted weak enforcement mechanisms across the country, with many workers excluded from coverage due to exemptions for businesses employing fewer than twenty-five people. Several state governments have reportedly declined to implement the minimum wage law, citing financial constraints.
Federal enforcement of wage, overtime, and occupational safety regulations remains ineffective, according to the findings. Penalties for violations were described as insufficient and rarely applied.
The report noted that labour inspectors lack adequate resources and numbers to ensure compliance, while most workers must file complaints through the National Industrial Court rather than receiving proactive protection. The situation is particularly challenging in Nigeria’s extensive informal sector, which employs between seventy and eighty percent of the workforce and where wage and safety regulations are largely unenforced.
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cc: The Cable NG
