The United States Department of State’s 2024 Country Reports on Human Rights Practices, released in August 2025, casts a critical light on Nigeria’s N70,000 minimum wage, describing it as unjust and inadequate in providing economic relief to the country’s workforce amidst rising inflation, currency depreciation, and systemic inequality. While the policy aims to offer protection for workers, its limited reach, weak enforcement, and the erosion of its purchasing power highlight a deepening inequity in the country’s labor market.
Fairview’s commitment to justice, equality, and fairness brings into focus the discriminatory effects of this wage on the most vulnerable sectors of Nigerian society. As the World Bank and other global organizations emphasize, Nigeria’s economic recovery efforts must address the underlying inequalities, focusing on ensuring that all workers are treated fairly, regardless of their employment status or sector.
Nigeria’s new minimum wage of N70,000 (approximately $47.90) per month is portrayed by the US Department of State as far below the poverty line, exacerbating inequality rather than addressing it. Enacted through the National Minimum Wage (Amendment) Act 2024, the wage increase from N30,000 is designed to offer relief to Nigeria’s workers who are struggling with inflation and skyrocketing living costs. However, the wage’s real value has been significantly diminished by the depreciation of the naira, which has resulted in the N70,000 wage failing to match basic living costs. By November 2024, the exchange rate had worsened to over N1,600 per dollar, further eroding the purchasing power of workers. As the US report rightly points out, the depreciation of the naira places the wage below the poverty threshold, contradicting the intention behind the policy and disadvantaging the majority of workers who are already vulnerable.
One of the key injustices embedded in the National Minimum Wage Act is its exclusion of informal sector workers, who represent a staggering 92.6% of Nigeria’s workforce. According to the African Development Bank, this large section of the workforce, including market traders, artisans, and small-scale farmers, is denied the legal protections that the wage law offers. Furthermore, the law only applies to employers with 25 or more full-time employees, which excludes a significant proportion of Nigeria’s labor force, particularly in small businesses and informal setups.
This discrimination against informal workers is a clear violation of the principle of equality. It further marginalizes a workforce that is already struggling with economic insecurity. Mr. Ayuba Wabba, the former president of the Nigeria Labour Congress (NLC), has expressed concern that the minimum wage law fails to address the realities of the Nigerian labor market, where millions work informally, with limited access to social protections or fair pay.
The US Department of State highlights the severe gap in the enforcement of the National Minimum Wage Act, noting that Nigeria’s labor inspectors are drastically insufficient to address the scale of non-compliance across the country. With fewer than 1,000 labor inspectors overseeing a workforce of more than 60 million people, the country’s enforcement capacity is woefully inadequate. As a result, many workers, particularly in the informal sector, are denied basic rights, such as fair wages and safe working conditions.
This lack of enforcement is a fundamental issue of justice and fairness. The failure to enforce labor laws creates an unequal playing field, where employers can exploit workers with impunity, knowing that penalties for violations are minimal, and labor inspections are few and far between. The International Labour Organization (ILO) has stressed the urgent need for greater investment in labor inspection to ensure that Nigerian workers are protected from exploitation and provided with a fair working environment.
Nigeria’s economic inequality is starkly reflected in its poverty levels, with nearly 46% of the population, or approximately 104 million people, living below the poverty line. This is compounded by the inflation crisis, which has driven the cost of living beyond the means of many Nigerians. The World Bank and Human Rights Watch report that rising food prices and transportation costs are the main contributors to the widening inequality. As inflation soars, wages remain stagnant or fail to keep pace, deepening the divide between the rich and the poor.
For vulnerable populations, particularly women, youth, and those in rural areas, the N70,000 minimum wage is simply not enough to cover basic expenses. The inequitable distribution of economic resources and opportunities in Nigeria is one of the main drivers of persistent poverty and social injustice. The US report calls for improved social protections that address the inequalities that leave millions behind, unable to access the resources needed for a decent standard of living.
To rectify these injustices, the US Department of State urges a comprehensive reform of Nigeria’s labor laws and social protection systems. The World Bank suggests that the Nigerian government scale up its social protection programs, such as cash transfers, and address the underrepresentation of informal workers in these systems. Dr. Ngozi Okonjo-Iweala, an economist with a focus on economic equity, advocates for formalizing the informal sector to ensure that all workers, regardless of their employment type, have access to fair wages and protections.
The African Development Bank also recommends the creation of an integrated identification system for informal workers to improve tax compliance and expand access to social benefits. This formalization would not only help increase wage fairness but also provide the Nigerian government with the tools to more effectively address the inequality that plagues its workforce.
The N70,000 minimum wage, while a step in the right direction, has proven insufficient in addressing the inequities in Nigeria’s economic system. The wage’s insufficient coverage, weak enforcement, and erosion of value through inflation and currency depreciation have left Nigeria’s most vulnerable workers at a severe disadvantage.
To build a more just and equitable society, it is crucial that Nigeria focuses on labor law enforcement, formalizing the informal economy, and ensuring that every worker regardless of their status has access to fair wages, basic protections, and the opportunity to thrive.
