N70,000 Minimum Wage Has Lost Value As Naira Falls – US Report

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The United States has stated that the persistent depreciation of the naira has eroded the real value of Nigeria’s newly approved minimum wage of ₦70,000 for federal workers.

In its 2024 Country Report on Human Rights Practices, released on August 12 by the US Department of State, Bureau of Democracy, Human Rights, and Labour, the wage equivalent to about $47.90 per month at the prevailing rate of over ₦1,500 per dollar was described as inadequate, as it no longer rises above the poverty threshold.

The report further noted that the National Minimum Wage (Amendment) Act 2024, which doubled the minimum wage to ₦70,000, excluded firms with fewer than 25 workers.

“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,” the report stated.

The law applies only to organizations with 25 or more full-time staff, exempting seasonal agricultural workers, part-time staff, and commission-based roles.

The US report also observed that several states had declined to implement the law, citing financial constraints, while enforcement gaps remained widespread.

It added: “The law did not define premium pay or overtime and prohibited excessive compulsory overtime for civilian government employees.

The government rarely enforced minimum wage and overtime rules, and penalties were low and not proportionate to other crimes such as fraud.”

According to the report, between 70 and 80 percent of Nigeria’s workforce operates in the informal sector, where wage, hour, and occupational safety laws are poorly enforced.

On child rights, the report expressed concern over early marriage despite federal laws pegging the minimum marriage age at 18.

While 35 states all except Zamfara have adopted the law, enforcement remains weak in many northern states.

In some areas, children as young as 11 were said to be married legally under customary or religious practices.

The US noted that the Nigerian government is working with local and international partners, including religious leaders, emirs, and sultans, to highlight the health risks associated with child marriage.

The report also flagged persistent concerns around security and justice delivery, including cases of enforced disappearances and arbitrary detentions.

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