The United States has stated that Nigeria’s new ₦70,000 minimum wage, approved in 2024, remains below the poverty threshold due to inflation and the continued depreciation of the naira. This assessment was contained in the 2024 Country Report on Human Rights Practices in Nigeria, released on 12 August 2025 by the U.S. Department of State in Washington.
According to the report, millions of Nigerian workers are excluded from the wage law, as it only applies to organisations employing 25 or more people. It further noted that the informal economy—which accounts for between 70 and 80 per cent of the workforce—remains largely unprotected.
The report observed that, even where the minimum wage is applicable, “some states have failed to implement the law citing financial challenges, while enforcement remained weak and penalties for violations were insufficient.”
The State Department highlighted structural gaps in Nigeria’s labour laws that make it difficult for workers to secure fair treatment. It pointed out the absence of clear definitions for premium pay and overtime standards, as well as the ineffectiveness of labour inspections.
“Many workers are still not receiving the legal minimum,” the report stressed.
The U.S. government also noted that poor enforcement, corruption, and weak monitoring systems continue to undermine workers’ rights. It warned that without urgent reforms, the minimum wage will remain inadequate and unable to lift families out of poverty.
The report urged the Nigerian government to strengthen enforcement agencies, ensure compliance across all states, and extend protections to informal-sector workers in line with international labour standards.
