The US government has voiced concerns about the sustainability of the new national minimum wage legislation. Nigeria’s newly approved N70,000 minimum salary is insufficient to help pull its residents out of poverty given the country’s deteriorating economic situation
According to the US Department of State’s Bureau of Democracy, Human Rights, and Labour’s 2024 Country Reports on Human Rights Practices, published on August 12, 2025, Washington observed that the ongoing depreciation of the naira has significantly weakened the minimum wage, which is currently worth approximately $47.90 per month at the current exchange rate of more than N1,500 to the dollar.
The National Minimum salary (Amendment) Act 2024 increased the salary from its previous level, but enforcement is still lax nationwide, the research noted.
It further stated that numerous states have declined to enforce the law, citing budgetary limitations, and that the Nigerian government hardly ever guarantees compliance.
“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 also mentioned that people on commission-based contracts, part-time workers, and seasonal agricultural workers are not covered by the law’s provisions.
According to the research, between 70 and 80 percent of Nigerian workers are employed in the informal sector, where regulations pertaining to pay, hours, and workplace safety are rarely implemented.
The minimum wage evaluation was conducted at a time when Nigeria is implementing extensive economic reforms, such as the elimination of fuel subsidies and the unification of the currency rate, which have increased inflationary pressures and made life more expensive for average Nigerians.
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