The United States government has raised concerns over Nigeria’s recently approved national minimum wage, warning that the N70,000 benchmark remains inadequate to tackle widespread poverty.
In its 2024 Country Reports on Human Rights Practices, published on August 12, 2025, the US Department of State stressed that worsening economic conditions and a fast-depreciating naira have severely eroded the value of workers’ earnings.
At the prevailing exchange rate of over N1,500 to the dollar, the N70,000 wage translates to just about $47.90 per month, a figure Washington described as far from sufficient for survival.
According to the report, although the National Minimum Wage (Amendment) Act 2024 doubled the previous wage level, Nigeria still struggles with weak enforcement.
Several state governments have openly resisted implementation, citing financial difficulties.
“Many employers had fewer than 25 employees, so most workers were not covered,” the report stated.
It added that seasonal agricultural workers, part-time staff, and commission-based employees are also left outside its provision
Furthermore, the US report stressed that between 70 and 80 percent of Nigeria’s workforce is engaged in the informal sector, where labour laws on wages, working hours, and safety are rarely enforced.
This gap, it said, leaves millions of Nigerians vulnerable to exploitation.
The report also flagged a shortage of labour inspectors nationwide.
With inadequate personnel to track compliance, most violations go unchecked, deepening the struggles of low-income workers across the country.
Moreover, the US government suggested that Nigeria’s economic reality calls for urgent reform.
The rising inflation, coupled with the steady depreciation of the naira, continues to weaken the real value of wages and undermine household purchasing power.
Meanwhile, labour unions have argued that even the revised N70,000 minimum wage fails to match the current cost of living, especially in urban areas where housing, food, and transportation expenses have skyrocketed.
