The United States government has said it was worried over the sustainability of new national minimum wage in Nigeria, warning that the recently approved N70,000 benchmark is not sufficient to Nigerians out of poverty because of the worsening economic conditions in the country.
In its 2024 Country Reports on Human Rights Practices, published on August 12, 2025 by the US Department of State’s Bureau of Democracy, Human Rights, and Labour, Washington stated that the minimum wage, presently valued at about $47.90 per month at the prevailing exchange rate of over N1,500 to the dollar, has been severely devalued by the continued depreciation of the naira.
It observed that although the National Minimum Wage (Amendment) Act 2024 doubled the wage from its previous level, enforcement remains weak across the country.
“Many employers had fewer than 25 employees, so most workers were not covered,” the report stated, stressing that the legislation applies only to firms with 25 or more full-time staff.
It further noted that seasonal agricultural workers, part-time employees, and those on commission-based contracts are also excluded from the law’s provisions.
The report added that between 70 and 80 per cent of Nigeria’s workforce operates within the informal economy, where wage, hour, and occupational safety laws are largely unenforced.
