America authorities has mentioned that Nigeria’s minimal wage of N70,000 was insufficient to elevate thousands and thousands of residents out of poverty, citing weak enforcement and the impact of the naira’s sharp devaluation.
In its 2024 Nation Experiences on Human Rights Practices, launched on August 12, 2025, the US Division of State mentioned Nigeria’s minimal wage, at the moment valued at about $47.90 per thirty days, falls under the poverty revenue degree.
“The Nationwide Minimal Wage (Modification) Act 2024 doubled the minimal wage to 70,000 naira ($47.90) per thirty days. Regardless of the rise, foreign money devaluation meant the minimal wage was not increased than the poverty revenue degree,” the report mentioned.
The report additional famous that wage enforcement throughout the nation stays weak, with many employees excluded from the legislation.
“The legislation supplied for a nationwide minimal wage for private and non-private sector employers with 25 or extra full-time staff, with exceptions for seasonal agricultural employees, part-time employees, these on fee, and a few others. Many employers had fewer than 25 staff, so most employees weren’t coated. Some states declined to implement the minimal wage legislation, citing {financial} constraints,” the U.S. added.
On labour rights, the report noticed that whereas the legislation mandated a 40-hour workweek, two to 4 weeks of annual go away, and additional time and vacation pay, it left gaps in defining premium pay and additional time. “The legislation prohibited extreme obligatory additional time for civilian authorities staff,” it mentioned.
Nonetheless, the US report criticised the Nigerian authorities’s capability to implement labor requirements. “The federal authorities hardly ever successfully enforced minimal wage, additional time, and occupational security and well being (OSH) legal guidelines. Penalties had been low and never commensurate with different crimes, comparable to fraud — and had been hardly ever utilized,” it famous.
The U.S. additionally highlighted institutional weaknesses, mentioning that the Ministry of Labour and Employment lacked the manpower to make sure compliance. “The Ministry of Labor and Employment was answerable for enforcement of wage, hour, and OSH legal guidelines, however the variety of labor inspectors was inadequate to implement compliance,” the report mentioned.
Whereas the legislation empowered labour inspectors to make unannounced visits and provoke sanctions, the report mentioned most employees had been required to file a grievance earlier than the Nationwide Industrial Court docket of Nigeria.
It added that the state of affairs was worsened by Nigeria’s big casual sector. “Between 70 and 80 per cent of the nation’s working inhabitants labored within the casual financial system. Authorities didn’t implement wage, hour, and OSH legal guidelines and inspections within the casual sector or with part-time employees,” the US report acknowledged.
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