The United States government has declared that Nigeria’s N70,000 minimum wage is inadequate to lift citizens 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 weakened by the naira’s continued depreciation.
The report noted that although the National Minimum Wage (Amendment) Act 2024 doubled the wage from its previous level, enforcement remains inconsistent across the country.
It added that the Nigerian government rarely ensures compliance, while several states have refused to implement the law, citing financial difficulties.
“Many employers had fewer than 25 employees, so most workers were not covered,” the report stated, emphasizing that the legislation applies only to firms with 25 or more full-time staff.
It further highlighted that seasonal agricultural workers, part-time employees, and those on commission-based contracts are also excluded from the law’s provisions.
The assessment 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, the number of labour inspectors in the country is grossly insufficient to monitor compliance, leaving millions of workers vulnerable to exploitation.
The findings come at a time when Nigeria is undergoing sweeping economic reforms, including fuel subsidy removal and exchange rate unification—policies that have triggered sharp inflationary pressures and worsened the cost of living for ordinary Nigerians.