“N70,000 Minimum Wage Cannot Lift Nigerians Out of Poverty” – US Report

The United States has raised concerns about Nigeria’s newly approved national minimum wage, warning that the N70,000 benchmark is insufficient to address the country’s deepening poverty crisis. In its 2024 Country Reports on Human Rights Practices, released on August 12, 2025, by the Department of State’s Bureau of Democracy, Human Rights, and Labour, Washington highlighted that the new wage, equivalent to about \$47.90 per month at the current exchange rate of over N1,500 to the dollar, has been eroded by the persistent depreciation of the naira.

The report acknowledged that the National Minimum Wage (Amendment) Act 2024 doubled the previous rate but stressed that enforcement remains weak. It noted that many state governments have yet to implement the law, citing limited financial capacity, while compliance is rarely ensured nationwide. The legislation itself applies only to firms with 25 or more full-time employees, leaving out a significant portion of the workforce, including those in small businesses, seasonal agricultural jobs, part-time positions, and commission-based roles.

The assessment also pointed to the dominance of the informal economy, where an estimated 70 to 80 per cent of Nigeria’s workforce is employed. In this sector, wage and occupational safety laws are largely unenforced, exposing millions of workers to exploitation. The report added that Nigeria’s shortage of labour inspectors has further undermined monitoring efforts, weakening the overall impact of the wage increase.