The report observed that although the National Minimum Wage (Amendment) Act 2024 doubled the wage from its previous level, enforcement remains weak across the country.
It added that the Nigerian government rarely ensures compliance, while several states have refused to implement the law, citing financial constraints.
“Many employers had fewer than 25 employees, so most workers were not covered,” the report stated, stressing that the legislation applies only to firms with 25 or more full-time staff.
It further noted that seasonal agricultural workers, part-time employees, and those on commission-based contracts are also excluded from the law’s provisions.
The report also said that between 70 and 80 per cent of Nigeria’s workforce operates within the informal economy, where wage, hour, and occupational safety laws are largely unenforced.
According to the US assessment, the number of labour inspectors in the country is grossly inadequate to monitor compliance, leaving millions of workers vulnerable to exploitation.
The assessment comes at a time when Nigeria is undergoing sweeping economic reforms, including fuel subsidy removal and exchange rate unification-policies that have triggered sharp inflationary pressures and worsened the cost of living for ordinary Nigerians.
