The United States has criticized President Bola Ahmed Tinubu’s minimum wage increase, stating that the impact has been eroded by the continued depreciation of the naira, leaving millions of Nigerians trapped in worsening poverty and inflation.
This was contained in the Country Reports on Human Rights Practices for 2024, released on August 12 by the U.S. Department of State’s Bureau of Democracy, Human Rights, and Labour.
The report noted that while the National Minimum Wage (Amendment) Act 2024 doubled the minimum wage to ₦70,000 ($47.90) per month, the sharp decline of the naira meant the figure still fell below the poverty income threshold.
It further observed that the wage increase had not reached a significant portion of the Nigerian workforce, as some states have yet to implement the law, while employers with fewer than 25 staff are exempted.
“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,” the U.S. report stated.
President Tinubu had announced the wage increase in July 2024, a year after his administration introduced fuel subsidy removal and exchange rate unification. At the time, he pledged that the minimum wage would henceforth be reviewed every three years, instead of five.