The United States has stated that Nigeria’s recently approved N70,000 minimum wage for federal workers has been eroded by the persistent fall of the naira.
In its Country Reports on Human Rights Practices for 2024, published on August 12 by the US Department of State’s Bureau of Democracy, Human Rights, and Labour, the US highlighted that the new wage, equivalent to about $47.90 per month, had been diminished by the exchange rate, with the naira trading at more than N1,500 to the dollar.
It also pointed out that companies with fewer than 25 employees were exempted from the wage law.
“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.
According to the report, some states have refused to enforce the law on account of financial difficulties, while enforcement remains weak at the federal level.
It added, “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 penalties were low and not commensurate with other crimes such as fraud.”
The US further observed that 70 to 80 per cent of Nigeria’s workforce is in the informal sector, where wage, hour, and...
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