A recent report from the United States government has highlighted significant challenges surrounding Nigeria’s minimum wage, asserting that the current rate of N70,000 is insufficient to uplift millions of citizens from poverty. Released on August 12, 2025, as part of its 2024 Country Reports on Human Rights Practices, the US Department of State noted that the minimum wage—approximately $47.90 per month—has been severely undermined by the ongoing devaluation of the Nigerian naira.
The report emphasizes weaknesses in wage enforcement across the nation. It states, “The law provides 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, and those on commission.” Despite the recent National Minimum Wage (Amendment) Act of 2024, which doubled the minimum wage to N70,000, the increasing cost of living has rendered this wage no longer sufficient to surpass the poverty income level.
Many businesses operate with fewer than 25 employees, which means that a sizable portion of the workforce remains unprotected by the law. Some state governments have opted not to implement the minimum wage law, citing financial constraints as a primary concern.
The report outlines additional labor law stipulations, including a 40-hour workweek, annual leave of two to four weeks, and provisions for overtime and holiday pay—excluding agricultural and domestic workers. However, it notes that the law lacks clear definitions for premium pay and overtime. Moreover, it prohibits excessive compulsory overtime for civilian government employees, yet enforcement remains largely ineffective.
The federal government’s enforcement of minimum wage, overtime, and occupational safety and health (OSH) laws is described as insufficient. The report points out that penalties for violations are low and do not match the severity of other criminal offenses, such as fraud, and are rarely applied in practice.
The Ministry of Labor and Employment is tasked with enforcing these laws; however, the lack of labor inspectors hampers compliance efforts. While the law empowers labor inspectors to conduct unannounced visits and initiate sanctions, most individuals are required to file complaints with the National Industrial Court for action to be taken.
Around 70 to 80 percent of Nigeria’s workforce is engaged in the informal economy, where authorities struggle to enforce wage, hour, and OSH laws. The lack of oversight in this sector presents ongoing challenges to improving labor conditions and ensuring fair wages for all workers in Nigeria.