The United States has raised concerns over Nigeria’s new minimum wage, stating it is insufficient to address the country’s deepening poverty crisis amid worsening economic conditions.
In its 2024 Country Reports on Human Rights Practices, released on August 12, 2025, the U.S. Department of State highlighted the limitations of Nigeria’s recently approved national minimum wage of N70,000. At the current exchange rate over N1,500 to the dollar the wage equates to roughly $47.90 per month, a value significantly diminished by the ongoing depreciation of the naira.
The report noted that while the National Minimum Wage (Amendment) Act 2024 doubled the previous wage rate, enforcement remains poor nationwide. Many states reportedly refuse to implement the law, citing budgetary limitations, while the federal government has struggled to ensure widespread compliance.
In addition, the legislation applies only to companies with 25 or more full-time staff, excluding a large portion of the workforce. Seasonal agricultural workers, part-time employees, and commission-based workers are also not protected by the new wage law.
The U.S. assessment pointed out that between 70 to 80 percent of Nigerian workers operate in the informal sector, where labor laws covering wages, hours, and workplace safety are rarely enforced. Compounding the issue is a severe shortage of labor inspectors, leaving millions of workers at risk of exploitation.
The report comes at a time when Nigeria is implementing major economic reforms such as the removal of fuel subsidies and unification of the foreign exchange rate. These policies have driven up inflation and dramatically increased the cost of living, putting further strain on low-income households.
The U.S. government emphasized that without stronger enforcement mechanisms and broader coverage, the new minimum wage is unlikely to make a meaningful impact on poverty reduction in the country.
