How Much Is Minimum Wage in Nigeria? Understanding the Current Standard

The minimum wage in Nigeria represents the lowest legal monthly salary employers must pay their workers, a figure that reflects both the nation’s economic realities and its efforts to ensure fair labor compensation. As of April 7, 2025, this amount shapes the livelihoods of millions of Nigerians, from civil servants to private-sector employees. We explore the current minimum wage, its historical evolution, the factors influencing its value, its practical implications, and what the future may hold for workers across the country.

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Current Minimum Wage in Nigeria: The Facts

As of April 7, 2025, the national minimum wage in Nigeria stands at ₦70,000 per month. This figure was enacted through the National Minimum Wage (Amendment) Act 2024, signed into law by President Bola Tinubu on July 29, 2024, with an effective date retroactive to May 1, 2024. This legislation raised the minimum wage from its previous level of ₦30,000, established in 2019, marking a significant 133% increase aimed at addressing the rising cost of living.

For context:

₦70,000 equates to approximately $42 USD, based on the parallel market exchange rate of ₦1,665/USD as of early April 2025.
This applies to all employers—public and private—employing 25 or more workers, excluding part-time, seasonal, or commission-based staff.

The law mandates compliance nationwide, with penalties for non-compliance including fines up to ₦75,000 and additional daily penalties of ₦10,000 for ongoing violations.

Historical Evolution of Nigeria’s Minimum Wage

The journey of Nigeria’s minimum wage reflects economic shifts and labor advocacy. We trace its progression:

1981: The first minimum wage was set at ₦125 per month under President Shehu Shagari, prompted by the Nigerian Labour Congress (NLC) threats of a nationwide strike.
1991: Adjusted to ₦250, a modest increase amid rising inflation.
2000: Rose to ₦5,500, reflecting early 21st-century economic growth.
2011: Increased to ₦18,900, aligning with post-global recession recovery efforts.
2019: Set at ₦30,000, a figure that, by 2024, had lost significant purchasing power due to inflation and naira depreciation.
2024: The current ₦70,000, effective from May 1, 2024, with a shortened review cycle from five to three years, meaning the next revision is due by 2027.

This timeline underscores a pattern: each adjustment responds to economic pressures, yet often lags behind inflation, eroding real value over time.

Who Does the Minimum Wage Apply To?

The National Minimum Wage Act covers a broad spectrum of workers, but not all. We clarify its scope:

Eligible Workers: Full-time employees in organizations with 25+ staff, including civil servants, private-sector workers (e.g., drivers, cleaners), and low-tier corporate employees.
Exemptions:
- Part-time workers.
- Seasonal employees (e.g., agricultural laborers during harvests).
- Commission or piece-rate workers (paid per output, not time).
- Businesses with fewer than 25 employees.

Public-sector workers, particularly federal and state civil servants, are the primary beneficiaries, though enforcement in the private sector remains inconsistent.

State Variations: Beyond the Federal Minimum

While ₦70,000 is the national baseline, some states have exceeded this threshold as of April 2025. We highlight notable examples:

Lagos State: Pays ₦85,000, with Governor Babajide Sanwo-Olu aiming for ₦100,000 by late 2025, citing the state’s high living costs.
Rivers State: Offers ₦85,000, approved in October 2024 by Governor Siminalayi Fubara.
Edo State: Set at ₦71,451.15, agreed upon with the NLC in October 2024.
Ondo State: Implemented ₦73,000, announced by Governor Lucky Aiyedatiwa in October 2024.
Kogi State: Pays ₦72,500, with a one-year tax suspension on this amount, per Governor Usman Ododo’s directive.

Conversely, states like Jigawa, Zamfara, and Akwa Ibom have yet to fully implement ₦70,000, reflecting fiscal constraints or delays in legislative approval.

Purchasing Power of ₦70,000 in Nigeria Today

The real value of ₦70,000 hinges on Nigeria’s economic conditions in April 2025. We assess its worth:

Fuel: At ₦600 per liter, ₦70,000 buys 116.67 liters, filling a 50-liter car tank twice with change.
Food: A 50kg bag of rice costs ₦80,000–₦90,000. The wage falls short, covering only 77–87% of one bag.
Rent: A one-bedroom flat in a city like Kano averages ₦150,000 annually, or ₦12,500 monthly, consuming 17.9% of the wage.
Transport: A daily commute in Lagos (e.g., ₦500 round-trip) totals ₦10,000 monthly, or 14.3% of ₦70,000.

With inflation at 34.19% (June 2024, per NBS), and food prices soaring, ₦70,000 struggles to meet basic needs, especially for families.

Factors Influencing Nigeria’s Minimum Wage

Several dynamics determine the minimum wage’s level and effectiveness. We break them down:

1. Inflation and Cost of Living

Nigeria’s inflation rate, peaking at 34.19% in mid-2024, erodes purchasing power. The ₦70,000 adjustment reflects this, yet critics argue it’s insufficient against a living wage estimated at ₦250,000 by labor unions.

2. Naira Depreciation

The naira’s value against the Dollar—₦1,665/USD (parallel market, April 2025)—slashes the wage’s international worth to $42, down from $80 for ₦30,000 in 2019, due to currency devaluation policies.

3. Government Revenue

Oil-dependent revenue (over 70% of federal income) limits wage hikes. With debts consuming 73.5% of revenue (Debt Management Office, 2023), fiscal space for increases is tight.

4. Labor Union Pressure

The NLC and Trade Union Congress (TUC) pushed for ₦494,000, staging strikes in 2023 and 2024. The compromise at ₦70,000 balances worker demands with government capacity.

5. Private Sector Viability

Small businesses, facing high operational costs post-fuel subsidy removal, resist higher wages, fearing layoffs or closures, influencing the final figure.

Implementation Challenges

Rolling out ₦70,000 nationwide isn’t seamless. We identify key hurdles:

State Compliance: Some states, like Bayelsa, cite budget constraints, delaying adoption.
Private Sector Enforcement: Weak oversight allows firms to pay below ₦70,000, especially in informal sectors (92.3% of employment, per NBS).
Arrears: Employers must back-pay from May 2024, straining finances for non-compliant entities.
Awareness: Workers in rural areas or small firms often lack knowledge of their rights, reducing enforcement.

Economic Impact of the ₦70,000 Minimum Wage

The wage hike reverberates across Nigeria’s economy. We analyze its effects:

Consumer Spending: An extra ₦40,000 monthly per worker boosts demand for goods, potentially stimulating local markets.
Inflation Risk: Increased disposable income could drive prices higher, with experts predicting a 2–3% inflation bump if unchecked.
Business Costs: Firms paying ₦30,000 now face a 133% labor cost rise, possibly leading to job cuts or price increases.
Poverty Alleviation: While lifting some above the ₦43,200 individual cost of living (Statista, 2024), it falls short for families needing ₦137,000+.

How Does Nigeria’s Minimum Wage Compare Globally?

We benchmark ₦70,000 against other nations in 2025:

United States: $7.25/hour = $1,256/month (at 40 hours/week), or ₦2,090,640 at ₦1,665/USD.
South Africa: R25.42/hour = R4,420/month, or ₦413,672 (₦93.6/ZAR).
Ghana: GH¢18.15/day = GH¢471.90/month, or ₦57,966 (₦122.8/GH¢).
India: ₹5,340/month = ₦105,732 (₦19.8/INR).

Nigeria’s $42/month ranks among the world’s lowest, per Velocity Global’s 2025 data, trailing even peers like Uzbekistan ($90/month).

Where to Verify the Minimum Wage

Workers and employers can confirm the current rate through:

CBN Website: Official economic policies and rates.
NLC/TUC Updates: Labor union announcements on compliance.
State Government Portals: For regional variations (e.g., Lagos at lagosstate.gov.ng).
Local BDCs: For Dollar conversions affecting real value.

Future Outlook for Nigeria’s Minimum Wage

The next review, due by April 2027, will hinge on:

Inflation Trends: If it exceeds 40%, pressure for a ₦100,000+ wage will mount.
Oil Revenue: A rise to $100/barrel could fund higher wages; a drop below $70 may stall increases.
Labor Advocacy: Unions may demand a living wage, targeting ₦250,000 if economic hardship persists.

Why ₦70,000 Matters to Nigerians

For millions, ₦70,000 is a lifeline—funding food, transport, and modest rent. Yet, its inadequacy against a ₦137,000 family cost of living (Statista, 2024) fuels debate. It’s a step forward from ₦30,000, but not a leap to prosperity, reflecting Nigeria’s balancing act between worker welfare and economic stability.

Read also: Learn how state policies impact Nigerian workers’ earnings.

Conclusion

The minimum wage in Nigeria as of April 7, 2025, is ₦70,000 per month, or $42 USD, a figure born from legislative reform and economic necessity. While it doubles the previous ₦30,000, its purchasing power remains strained by inflation, naira depreciation, and rising costs. Variations like Lagos’ ₦85,000 signal regional efforts to adapt, yet nationwide enforcement and adequacy remain challenges. For workers, employers, and policymakers, understanding this wage’s scope and limits is crucial to navigating Nigeria’s economic terrain.