N70,000 Minimum Wage Has Lost Value As Naira Falls – US Report
The United States has said the continued depreciation of the naira has undermined Nigeria’s recently approved minimum wage of N70,000 for federal workers.
A report by the country on Human Rights Practices for 2024, dated August 12 and released by the US Department of State, Bureau of Democracy, Human Rights, and Labour, 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 penalties were low and not commensurate with other crimes such as fraud.”
According to the report, between 70 and 80 per cent of Nigeria’s working population operates in the informal economy, where authorities fail to enforce wage, hour, and Occupational Safety and Health laws.
On child rights, the US flagged concerns over early marriage despite federal laws stipulating 18 years as the minimum age.
“Federal law sets a minimum age of 18 for marriage for both boys and girls.
“While 35 states, all except Zamfara State, adopted the law, many states, especially northern states, did not uphold the federal minimum age.
“In some states, children as young as 11 could be legally married under customary or religious law.
“The government worked with local and international partners to engage religious leaders, emirs, and sultans on the issue, emphasising the health hazards of early marriage,” the report emphasised.
The report also raised concerns over security and justice delivery, citing cases of enforced disappearances and arbitrary detentions.
Olamilekan Adigun is a graduate of Mass Communication with years of experience in journalism embedded in uncovering human interest stories. He also prioritises accuracy and factual reportage of issues.
