The United States has raised concerns that Nigeria’s newly approved ₦70,000 minimum wage remains far below the poverty threshold and is inadequate to improve living standards.
In its 2024 Country Reports on Human Rights Practices, released on August 12, 2025, the U.S. Department of State observed that despite the increment, the wage’s real value has been eroded by inflation and currency depreciation. With the naira’s current weakness, ₦70,000 equals just $47.90 per month, making it among the lowest statutory wages globally.
Nigeria below poverty benchmark
The World Bank defines extreme poverty as living on less than $2.15 per day, which is about $64.50 per month. By this standard, the ₦70,000 minimum wage already places Nigerian workers below the poverty threshold, even when paid in full.
The U.S. report further criticized Nigeria’s weak enforcement of labour laws, noting that many workers, especially in informal sectors and at state level, either earn below the statutory wage or face delays in payment.
Historical struggle with wages
Nigeria’s minimum wage history shows how quickly inflation and poor implementation undermine reforms:
2000: Raised to ₦5,500.
2011: Increased to ₦18,000.
2019: Increased to ₦30,000, though many states struggled to comply.
2025: Increased to ₦70,000 after prolonged labour-government negotiations.
But unlike in previous cycles, the real value of the wage has plummeted. In 2019, the ₦30,000 wage was worth about $83. Today, ₦70,000 is worth less—just $47.90—due to massive naira depreciation.
How Nigeria compares in Africa
Nigeria’s new wage is one of the lowest on the continent when adjusted to U.S. dollars:
South Africa: About $258/month (R27.58 per hour national minimum wage).
Kenya: Roughly $135/month (varies by location and sector).
Ghana: Around $75/month (GH¢18.15 daily minimum wage).
Nigeria: $47.90/month at ₦70,000.
This shows that Africa’s largest economy now has a minimum wage lower than Ghana’s, and less than one-fifth of South Africa’s.
Wider economic implications
Labour unions in Nigeria have warned that the wage increase is meaningless without tackling inflation, food insecurity, and the high cost of living. With over 40% of Nigerians living in poverty, the report underscores the urgent need for reforms that go beyond wage adjustments to include price stability, stronger enforcement, and investment in job creation.
The U.S. assessment reinforces the view that Nigeria’s minimum wage, while politically symbolic, is economically inadequate to restore workers’ dignity or guarantee a path out of poverty.
