The much-celebrated N70,000 minimum wage approved by the Nigerian government in 2024 has already lost significant value due to the rapid depreciation of the naira, according to a recent United States Department of State human rights report.
The report, released on August 12, 2025, by the Bureau of Democracy, Human Rights, and Labour, highlighted that while the wage increase was intended to cushion federal workers against rising living costs, the weakening exchange rate has rendered the adjustment almost meaningless.
At the current exchange rate of over N1,500 to the dollar, the new wage amounts to roughly $47.90 per month, falling below international poverty benchmarks.
The National Minimum Wage (Amendment) Act 2024 doubled Nigeria’s wage floor from N30,000 to N70,000.
However, the law only applies to organizations with 25 or more employees, leaving out millions of workers in small and medium-sized businesses. Seasonal agricultural workers, part-time staff, and commission-based employees were also excluded.
The US report noted that many state governments have yet to implement the new law, citing limited revenue and fiscal constraints.
Furthermore, the federal government has been accused of poor enforcement, as penalties for non-compliance remain weak and far less severe than for financial crimes like fraud.
Between 70 and 80 percent of Nigerian workers operate in the informal economy, where enforcement of wage, safety, and labor laws is almost non-existent.
Analysts warn that this leaves millions without job security or protections, undermining the intended impact of the wage hike.
Economist Dr. Henry Odo, speaking with our correspondent, argued that the wage increase was “a political gesture rather than a sustainable economic reform.”
He explained that without tackling inflation, unemployment, and naira volatility, wage increments would continue to lose their relevance.
The US report also flagged several structural issues within Nigeria’s labor system.
It observed that overtime and premium pay laws remain unclear, and while the law prohibits excessive compulsory overtime for government workers, enforcement is rarely effective.
On human rights, the report cited violations such as early child marriage, arbitrary detentions, and security force abuses.
Despite federal laws setting 18 as the minimum marriage age, some northern states still allow girls as young as 11 to marry under religious or customary practices.
The US also highlighted systemic challenges in Nigeria’s judicial system.
It pointed out cases where detainees remained in pretrial custody for years—sometimes longer than the maximum sentence for their alleged crimes—due to corruption, lack of judges, and bureaucratic inefficiency.
Furthermore, agencies like the Nigeria Police Force and Nigerian Correctional Service often lack resources, including vehicles, to transport suspects to court.
Some detainees, the report noted, have remained in custody simply because their case files were misplaced.
While the introduction of a N70,000 minimum wage was initially hailed as a landmark reform, its erosion by inflation and currency depreciation underscores the deeper economic crisis Nigeria faces.
With food inflation above 30%, transport costs rising, and over 133 million Nigerians classified as multidimensionally poor by the National Bureau of Statistics, the real value of wages continues to shrink.
Labor unions, including the Nigeria Labour Congress (NLC), have already warned that unless urgent measures are taken to stabilize the naira and curb inflation, the wage law will be “dead on arrival.”
As global institutions continue to scrutinize Nigeria’s human rights and labor practices, the government faces mounting pressure to not only enforce wage compliance but also pursue broader reforms that address inflation, insecurity, and judicial inefficiencies.