Despite being celebrated as a landmark wage reform, the report reveals that the sharp devaluation of the naira has eroded much of its real worth. At the current exchange rate of over ₦1,500 to $1, the ₦70,000 minimum wage amounts to just $47.90 per month, placing Nigerian workers among the lowest-paid in the world.
Key Highlights from the Report
Currency Devaluation: The naira’s freefall has slashed the real purchasing power of the new wage. While ₦70,000 may sound significant domestically, it is insufficient to cover basic living expenses under skyrocketing inflation and high food costs.
Limited Application: The law applies only to businesses with 25 or more full-time employees, meaning millions of Nigerians working in small businesses remain excluded from the wage protection.
Implementation Failures: Several states have refused to implement the minimum wage, citing budgetary challenges. The federal government has also struggled to enforce compliance, especially in the informal sector, which accounts for 70–80% of Nigeria’s workforce.
Human Rights Concerns: Beyond wage issues, the report raised alarm over broader rights violations in Nigeria. These include enforced disappearances, arbitrary detentions, and child marriages, with some states permitting girls as young as 11 years old to marry under customary or religious law.
A Symbolic Gesture or Real Reform?
The US report concludes that while the ₦70,000 minimum wage was intended to cushion Nigerian workers, its impact has been largely symbolic. Structural challenges—such as soaring inflation, weak enforcement mechanisms, and the dominance of the informal economy—continue to undermine any real progress.
Economists warn that without tackling the root causes of naira devaluation, corruption, and weak state capacity, Nigerian workers will remain trapped in a cycle of poverty, despite official wage increases.