Poor Enforcement and Narrow Coverage Leave Nigeria’s Workers Unprotected, U.S. Says

The United States has raised concerns over Nigeria’s newly approved ₦70,000 minimum wage, warning that poor enforcement and limited coverage mean millions of workers remain unprotected and vulnerable.

In its latest Country Report on Human Rights Practices (2024), released on August 12, 2025, the U.S. Department of State noted that while the wage increase marks progress from the previous ₦30,000 benchmark, it is undermined by the continued depreciation of the naira and the government’s weak enforcement capacity.

According to the report, the ₦70,000 minimum wage—currently equivalent to less than $48 per month—falls below the poverty income line and fails to reflect the rising cost of living faced by ordinary Nigerians.

The U.S. government further observed that the law only applies to businesses with 25 or more full-time employees, excluding the majority of workers in the informal sector, which accounts for an estimated 70–80% of Nigeria’s labour force.

“The new minimum wage is a step in the right direction, but without stronger enforcement and broader coverage, millions of Nigerian workers will continue to face economic hardship,” the report said.

It also noted that several Nigerian states have been slow or unwilling to implement the wage, citing budgetary constraints. Labour inspectors, though empowered to conduct unannounced visits and apply sanctions, are too few and often ineffective in holding employers accountable.

The U.S. assessment echoes concerns long raised by local trade unions, who argue that the wage increase does little to shield workers from high inflation, food price hikes, and worsening living standards.

Labour leaders have also urged the government to focus on policies that address the plight of essential workers such as teachers, nurses, and police officers, many of whom continue to earn far less than the newly approved minimum.

For now, while Nigeria’s minimum wage legislation may look like progress on paper, the U.S. report concludes that weak enforcement and narrow coverage mean that millions of Nigerians will not feel its impact.