Nigeria’s federal government recently approved a new minimum wage of ₦70,000 for its workers, a significant hike from the previous rate. However, a new report from the United States has raised concerns that this increase is losing its value due to the ongoing depreciation of the naira.
The US Department of State’s 2024 Human Rights Practices report, released on August 12, pointed out that while the minimum wage increase was intended to ease the financial burden on federal employees, the naira’s continued fall against the dollar has diminished its impact. Currently, ₦70,000 is equivalent to just about $47.90 per month, with the naira trading at over ₦1,500 to the dollar.
The report highlighted that the benefits of the minimum wage increase have not reached many workers, particularly those employed in small firms. According to the law, the increase applies only to companies with 25 or more full-time staff, meaning that smaller businesses with fewer employees remain unaffected. Moreover, the report noted that certain states have not implemented the law, citing financial constraints and gaps in enforcement.
Another issue identified in the report was the lack of clarity on premium pay and overtime provisions in the law. The US report stressed that while the law prohibits excessive overtime, its enforcement remains weak, with penalties for violations being insufficient.
The report also pointed out that a large portion of Nigeria’s workforce operates in the informal economy, where labour laws, including those regarding wages and working hours, are rarely enforced. It was estimated that between 70 and 80 percent of Nigeria’s working population is part of this informal sector, where there are no clear regulations regarding wages, hours, and Occupational Safety and Health standards.
On a different note, the report addressed other social issues, including child marriage. Despite federal laws setting the minimum age of marriage at 18, many states, particularly in the northern region, still permit child marriages under customary or religious laws. This has been a point of concern for both local and international partners working with religious leaders and traditional rulers to combat the practice.
Furthermore, the US report raised alarms about security and justice delivery in Nigeria. It referred to ongoing cases of enforced disappearances and arbitrary detentions, with reports from Amnesty International indicating that dozens of young men detained by the now-disbanded SARS unit are still missing. The report highlighted the abuse of power by security forces, who sometimes arrest individuals without a warrant and hold them incommunicado, often for extended periods.
The Nigerian justice system also came under scrutiny for issues such as lengthy pretrial detentions and delays in court proceedings.
