The United States government has issued a stark warning about the sustainability of Nigeria’s newly approved N70,000 national minimum wage, describing it as insufficient to lift millions of citizens out of poverty amid the country’s escalating economic challenges.
The critique, detailed in the U.S. Department of State’s 2024 Country Reports on Human Rights Practices released on August 12, 2025, highlights the erosion of the wage’s value due to the naira’s steep depreciation and widespread non-compliance by employers and state governments.
The report, produced by the Bureau of Democracy, Human Rights, and Labour, notes that the National Minimum Wage (Amendment) Act 2024, which doubled the wage from its previous level, is severely undermined by Nigeria’s economic realities.
With the naira trading at over N1,500 to the dollar, the N70,000 minimum wage translates to a mere $47.90 per month—far too low to meet basic needs in the face of soaring inflation triggered by recent economic reforms, including fuel subsidy removal and exchange rate unification. These policies have intensified the cost-of-living crisis, leaving ordinary Nigerians struggling to afford essentials.
The U.S. report underscores weak enforcement as a critical issue, stating that the Nigerian government “rarely ensures compliance” with the minimum wage law.
Several state governments have openly refused to implement the N70,000 benchmark, citing financial constraints, while the law’s scope excludes a significant portion of the workforce. It applies only to businesses with 25 or more full-time employees, leaving workers in smaller firms—where many Nigerians are employed—without coverage.
Seasonal agricultural workers, part-time employees, and those on commission-based contracts are also excluded, further limiting the law’s impact.
Compounding the problem, the report highlights that 70 to 80 percent of Nigeria’s workforce operates in the informal economy, where wage, hour, and occupational safety regulations are largely unenforced.
The shortage of labour inspectors, described as “grossly inadequate,” leaves millions vulnerable to exploitation, with little recourse for addressing violations.
“The number of inspectors is insufficient to monitor compliance effectively,” the report states, pointing to systemic gaps in labour oversight.