The government of the United States has said that currency devaluation in Nigeria has reduced the value of the N70,000 minimum wage, making it lower in value and insufficient to lift citizens out of poverty.
According to the 2024 country reports on human rights practice, the new minimum wage at N70,000 is equivalent to $47.90 per month, and rarely effectively enforced by the Nigerian government.
Some states, according to the report are declining to implement the minimum wage law, citing financial constraints, adding that the number of labor inspectors was insufficient to enforce compliance.
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“The National Minimum Wage (Amendment) Act 2024 doubled the minimum wage to 70,000 naira ($47.90) per month. Despite the increase, currency devaluation meant the minimum wage was no longer higher than the poverty income level.
“Many employers had fewer than 25 employees, so most workers were not covered. Some states declined to implement the minimum wage law, citing financial constraints,” it stated.
The report also noted that between 70 and 80 percent of the country’s working population worked in the informal economy, with authorities not enforcing wage and hour laws.
“The law mandated a 40-hour workweek, two to four weeks of annual leave, and overtime and holiday pay, except for agricultural and domestic workers. The law did not define premium pay or overtime. The law prohibited excessive compulsory overtime for civilian government employees.
“The government rarely effectively enforced minimum wage, overtime, and OSH laws. Penalties were low, not commensurate with other crimes such as fraud, and rarely applied. The Ministry of Labor and Employment was responsible for enforcement of wage, hour, and OSH laws, but the number of labor inspectors was insufficient to enforce compliance.
“Although the law gave labor inspectors authority to make unannounced visits and initiate sanctions, it stipulated most individuals needed to file a complaint before the National Industrial Court of Nigeria.”
The report stated that some statutory limitations restricted the right to form or belong to a trade union or other association, bargain collectively, and conduct legal strikes.
“A new trade union could not register if it had fewer than 50 members or another union was already registered in the trade or profession. Lengthy notice periods and an unlimited timeline for the ministry to deliberate on objections also deterred legitimate worker organization. Penalties were imposed for organizing or joining an unrecognized organization.
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“The law limited the scope of collective bargaining. For example, every collective agreement on wages had to be registered with the National Salaries, Income, and Wages Commission, which decided whether the agreement became binding.
“The law placed restrictions on workers’ right to strike. For example, the law required a majority vote of all registered union members to call a strike and limited the right to strike to certain types of labor disputes, such as those arising from an employment contract or related to wages and conditions of work,” it stated.
