The United States government has expressed concern over the sustainability of Nigeria?s new national minimum wage, warning that the recently approved N70,000 benchmark is inadequate to lift citizens out of poverty due to the country?s worsening economic conditions.

In its 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, Washington noted that the minimum wage, currently valued at about $47.90 per month at the prevailing exchange rate of over N1,500 to the dollar, has been severely eroded by the continued depreciation 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 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.

According to the US assessment, the number of labour inspectors in the country is grossly inadequate to monitor compliance, leaving millions of workers vulnerable to exploitation.

The assessment comes at a time when Nigeria is undergoing sweeping economic reforms, including fuel subsidy removal and exchange rate unification-policies that have triggered sharp inflationary pressures and worsened the cost of living for ordinary Nigerians. (Daily Trust)

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