The government of the United States has sent a strong message to President Bola Ahmed Tinubu’s administration, stating that the N70,000 minimum wage is insufficient to lift Nigerians out of poverty.
This was contained in the 2024 Country Reports on Human Rights Practices, released on August 12, 2025, by the US Department of State’s Bureau of Democracy, Human Rights, and Labour.
The US Department of State said the minimum wage, currently valued at about $47.90 per month, has been severely eroded by the devaluation of the naira.
The report observed that although the National Minimum Wage (Amendment) Act 2024 doubled the wage from its previous level, enforcement remains weak across the country.
It added that the Nigerian government rarely ensures compliance, while several states have refused to implement the law, citing financial constraints.
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 law mandated a 40-hour workweek, two to four weeks of annual leave, and overtime and holiday pay, except for agricultural and domestic workers.
The law did not define premium pay or overtime. The law prohibited excessive compulsory overtime for civilian government employees,” the report noted.
The report also said 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.
It added that penalties were low and not commensurate with other crimes, such as fraud — and were rarely applied.
“The Ministry of Labor and Employment was responsible for enforcement of wage, hour, and OSH laws, but the number of labor inspectors was insufficient to enforce compliance,” the report added.
Although the law gave labour inspectors authority to make unannounced visits and initiate sanctions, it stipulated that most individuals needed to file a complaint before the National Industrial Court of Nigeria.
“Between 70 and 80 percent of the country’s working population worked in the informal economy. Authorities did not enforce wage, hour, and OSH laws and inspections in the informal sector or with part-time workers.”
The minimum wage was increased from N30,000 to N70,000 after President Tinubu signed the Minimum Wage Act (Amendment) Bill into law in July 2024, with an assurance that it would be reviewed after three years, instead of five years
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