N70,000 Minimum Wage Undermined by Naira Devaluation
The U.S. Department of State, Bureau of Democracy, Human Rights, and Labor has reported that Nigeria’s recently approved ₦70,000 minimum wage has already lost much of its value due to the sharp decline of the naira.
The report, part of the 2024 Country Reports on Human Rights Practices, notes that the new wage, which was intended to provide relief for Nigerian workers, no longer meets basic living standards as the currency continues to depreciate.
Dollar Value Shrinks Amid Inflation
When the National Minimum Wage (Amendment) Act, 2024 was signed into law, ₦70,000 translated to just about $47.90 at the prevailing exchange rate of over ₦1,500 to the dollar.
With inflation soaring and the naira’s value plummeting further, the wage is now insufficient to cover essential needs, pushing workers closer to the poverty line.
Limited Coverage and Enforcement Gaps
The report also highlights that the law only applies to employers with 25 or more workers, excluding millions employed in smaller firms.
In addition, enforcement remains weak:
Several states have not implemented the new wage, citing financial constraints.
Penalties for violations are minimal, reducing the law’s effectiveness.
Terms like “premium pay” and “overtime” remain undefined, leaving loopholes for exploitation.
Background: Labour Struggle and Wage Agreement
The ₦70,000 minimum wage came after months of nationwide strikes and negotiations between the Nigerian government and labour unions.
While it represented a significant increase from the previous ₦30,000 minimum wage, analysts argue that without strong enforcement and a stable naira, the reform is more symbolic than impactful.
The Bigger Picture
The U.S. report concludes that unless Nigeria addresses currency stability, inflation, and enforcement mechanisms, the ₦70,000 wage will remain inadequate.
For millions of Nigerian workers, the reality is clear: despite a higher wage on paper, purchasing power continues to decline, leaving households struggling with food, housing, transport, and healthcare costs.
