The United States has said Nigeria’s recently approved minimum wage of N70,000 for federal workers has been undermined by the continued depreciation of the naira.
In its Country Reports on the US department of state website dated August 12 on Human Rights Practices for 2024, released by the US Department of State, Bureau of Democracy, Human Rights, and Labour, the report noted that the new wage, pegged at about $47.90 per month, had lost its value due to the naira trading at over N1,500 to the dollar.
It added that firms with fewer than 25 workers did not benefit from the wage increase.
“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,” the report said.
The law provides a national minimum wage for employers with 25 or more full-time staff, with exceptions for seasonal agricultural workers, part-time employees, and commission-based roles.
The US report further observed that some states had declined to implement the law, citing financial constraints. It also pointed out gaps in enforcement.
It stated,”The law did not define premium pay or overtime and prohibited excessive compulsory overtime for civilian government employees, stressing that the government rarely effectively enforced minimum wage and overtime, while...
Banking stocks across the globe sold off on Friday, as fears about bad U.S. loans spilled over into equity markets beyond the United States. U.S. stock markets were rattled on Thursday amid mounti...