The United States government has said that Nigeria’s N70,000 minimum wage is incapable of lifting millions of citizens out of poverty.
The Bola Tinubu administration has set an ambitious goal to lift 100 million people out of poverty by 20230 under its Renewed Hope Agenda, which focuses on infrastructure development, promoting agriculture, and addressing poverty through the Ministry of Humanitarian Affairs and Poverty Alleviation.
The strategy also involves partnerships with organizations like the United Nations and the World Bank, aiming for inclusive, sustainable growth and providing social interventions for vulnerable groups. The current initiative targets 1.5 million people annually, building on earlier programs like N-Power.
But, in its 2024 country reports on human rights practices, released on 12 August 2025, 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 also noted that wage enforcement remains weak across the country.
The report reads: ‘The law provided for a national minimum wage for public and private sector employers with 25 or more full-time employees, with exceptions for seasonal agricultural workers, part-time workers, those on commission, and some others.
‘The National Minimum Wage (Amendment) Act 2024 doubled the minimum wage to 70,000 naira ($47.90) per month. Despite the increase, currency devaluation meant the minimum wage was no longer higher than the poverty income level.
‘Many employers had fewer than 25 employees, so most workers were not covered. Some states declined to implement the minimum wage law, citing financial constraints.
‘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 also said the federal government rarely effectively enforced minimum wage, overtime, and Occupational Safety and Health (OSH) laws.
It added that penalties were low and not commensurate with other crimes, such as fraud — and were rarely applied.
The report added: ‘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.
‘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% 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’.
