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...
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