The United States government has said that the newly approved ₦70,000 minimum wage by the Nigerian government is insufficient to lift millions of Nigerians out of poverty.
It particularly noted that many households remain trapped in poverty despite the adjustment, stressing that the devaluation of the naira has further eroded the value of the new wage which has pegged it at about $47.90 per month.
These were contained in the U.S. 2024 Country Reports on Human Rights Practices, released on August 12, 2025, in which the U.S. Department of State said that weak enforcement and economic realities have continue to undermine workers’ welfare.
The report highlighted how the law, which applies to employers with 25 or more full-time workers, leaves out large sections of the labour force, in addition to seasonal agricultural workers, part-time staff, and those paid by commission.
It said; “The National Minimum Wage (Amendment) Act 2024 doubled the minimum wage to ₦70,000 per month. Despite the increase, currency devaluation meant the minimum wage was no longer higher than the poverty income level”.
The report also noted that Several states have refused to implement the law, citing financial constraints, adding that wage enforcement remains weak, with penalties rarely applied.
The report specifically noted that many Nigerian workers, especially those in the informal sector, are excluded from protection.
It further stated; “The Ministry of Labor and Employment responsible for enforcement of wage, hour, and occupational safety and health laws, has insufficient number of labor inspectors to enforce compliance”.
The State Department also noted that between 70 and 80 per cent of Nigeria’s workforce operates in the informal sector, where inspections and wage enforcement are virtually absent.
It stated that while the law prescribes a 40-hour workweek, annual leave, and overtime pay, the provisions are often ignored due to poor oversight and the lack of effective enforcement mechanisms.
The report added to concerns raised by labour unions in Nigeria, who argue that even the ₦70,000 wage does not reflect the rising cost of living and inflation.
