US Report: Nigeria’s ₦70,000 Minimum Wage Too Weak to Lift Citizens Out of Poverty

The United States government has cast doubt on Nigeria’s newly approved ₦70,000 national minimum wage, warning that it cannot rescue millions of Nigerians from deepening poverty amid worsening economic conditions.

In its 2024 Country Reports on Human Rights Practices, released on August 12, 2025, the US Department of State’s Bureau of Democracy, Human Rights, and Labour said the wage equivalent to just $47.90 per month at the current exchange rate of ₦1,500/$ has already been eroded by the collapsing naira.

Although the wage law doubled previous earnings, the report stressed that weak enforcement, state-level resistance, and exclusions for informal and small-scale workers mean most Nigerians remain unprotected. With up to 80% of the workforce in the informal sector, millions are left vulnerable to exploitation and poor working conditions.

The US report further noted that Nigeria has too few labour inspectors to monitor compliance, while rising inflation from fuel subsidy removal and exchange rate unification has pushed the cost of living beyond the reach of ordinary citizens.

The findings come as Nigerian workers continue to grapple with soaring food prices, energy costs, and stagnant economic opportunities, raising concerns that the ₦70,000 wage may be symbolic rather than transformative.