The United States government has expressed deep concern over the sustainability of Nigeria’s new national minimum wage, warning that the recently approved ₦70,000 benchmark is inadequate to lift citizens out of poverty amid worsening economic conditions.
In its 2024 Country Reports on Human Rights Practices, released on August 12, 2025, the U.S. Department of State noted that the ₦70,000 wage amounts to just $47.90 per month at the current exchange rate, falling below the global poverty income level.
The report further revealed that the law only applies to employers with 25 or more full-time employees, leaving out the majority of Nigeria’s workforce in the informal sector, where 70 to 80 percent of workers are engaged. Seasonal, part-time, and commission-based workers are also excluded, while weak enforcement continues to undermine implementation.
It also highlighted that several state governments have refused to implement the wage floor, citing financial constraints, a situation that worsens the plight of workers already struggling with inflation and the rising cost of living.
The ₦70,000 minimum wage was introduced after protracted negotiations in 2024, during which labour unions initially demanded ₦494,000. Although the agreement included a review every three years, inflation, subsidy removal, and naira devaluation have drastically eroded purchasing power, making the wage insufficient for basic needs.
Economic analysts warn that the wage, though higher on paper compared to the previous ₦30,000, remains largely symbolic unless backed by sound economic reforms, stronger enforcement mechanisms, and measures to reduce the cost of living.