Minimum Wage in Nigeria

Minimum wage in Nigeria 2025: Ultimate guide to ₦70,000 rate (2024 Act), history from ₦125 (1981), state variations (up to ₦104k), impact (inflation, layoffs) & future.

In an economy where inflation exceeded 33% in 2024 and the cost of living continues to soar, the national minimum wage remains a lifeline for millions of low-income workers—yet it often falls short of providing true financial security. As of November 2025, the minimum wage in Nigeria stands at ₦70,000 per month, following the National Minimum Wage (Amendment) Act signed into law by President Bola Tinubu in July 2024—a 133% increase from the previous ₦30,000 set in 2019. This hard-won adjustment, secured after nationwide strikes and tense negotiations with labour unions, aims to cushion the blow of subsidy removals and naira devaluation, but debates rage over its adequacy, enforcement, and ripple effects like potential layoffs and further inflation. This exhaustive guide covers everything from historical timelines and state variations to real-world impacts, compliance tips, and future outlook—your one-stop resource for understanding Nigeria's minimum wage landscape in 2025.

Current Minimum Wage in Nigeria: Key Details for 2025

The national minimum wage in Nigeria is the legally mandated lowest monthly salary employers can pay workers with 25+ employees, excluding part-timers, commission-based roles, seasonal farm workers, or vessel crews.

The 2024 Amendment Act: What Changed?

• New Rate: ₦70,000 per month (up from ₦30,000).
• Effective Date: Retroactive to May 1, 2024 (old rate expired April 2024).
• Review Cycle: Shortened from 5 years to 3 years.
• Exemptions: Organizations with fewer than 25 workers; part-time/on-commission/seasonal roles.
• Penalties for Non-Compliance: Fines up to 5% of monthly wage + arrears + interest at CBN rate.

Signed July 29, 2024, after NLC/TUC strikes paralyzed the economy in June 2024. By November 2025, federal workers receive full implementation with arrears; many states lag or pay bonuses.

For official text, see the National Minimum Wage (Amendment) Act 2024 on PLAC.

History of Minimum Wage in Nigeria: A Timeline of Increases

Nigeria's minimum wage journey reflects economic booms, military rule, and democratic bargaining.

The 2024 hike is the largest percentage since 2000, but inflation (34%+ in 2024) erodes gains—real value lower than 2019 in purchasing power.

Visualize this infographic: A bar chart of nominal vs. inflation-adjusted wages since 1981, showing peaks in 2000/2011.

Minimum Wage by State: Variations and Implementation in 2025

The national rate is the floor—states can (and some do) pay more.

States Paying Above ₦70,000 (as of Nov 2025)

• Imo: ₦104,000 (announced August 2025).
• Rivers: ₦85,000+.
• Lagos: ₦85,000 (target ₦100,000 by Jan 2026).
• Ogun: ₦77,000.
• Edo, Kwara, others: ₦70,000–₦80,000 with bonuses.

Many states struggle: North-East/North-West cite low IGR; some pay ₦40,000–₦60,000 with arrears pending. NLC threatens strikes in non-compliant states.

Check state-specific updates via NLC official site.

Who Must Pay the Minimum Wage? Coverage and Exemptions

Applies to:

• All employers with 25+ workers (private/public).
• Full-time staff.

Exempt:

• <25 employees (e.g., small shops).
• Part-time, commission, seasonal agriculture, vessel crews.

Domestic workers (maids/drivers) often excluded in practice—major enforcement gap.

Economic Impact of the ₦70,000 Minimum Wage in 2025

The increase brings relief but sparks debate.

Positive Effects

• Boosts consumer spending for low-income households.
• Reduces poverty marginally (World Bank estimates 4–7 million lifted temporarily).
• Pressures productivity improvements.

Negative/Reported Consequences

• Layoffs: Private sector (especially SMEs) cut jobs—thousands reported in manufacturing/hospitality.
• Inflation: Added ~2–4% to headline inflation (CBN estimates); goods prices rose post-implementation.
• Business Closures: Small firms relocate or automate.
• State Budget Strain: Many owe arrears; some slash projects.

2025 reality: ₦70,000 (~$42 USD at ₦1,670/$) covers basics in rural areas but barely a week's groceries in Lagos (family of 4 needs ₦200,000+ monthly).

Enforcement and Penalties: How Compliance Works

Ministry of Labour inspectors + NLC monitoring enforce the law.

• Violations: Fine = 5% of owed wage + full arrears + CBN interest.
• Criminal Charges: Possible for willful non-payment.

Yet enforcement weak—informal sector (70% workforce) largely ignores.

Future Outlook: Next Review and Calls for Living Wage

Next mandatory review: 2027, but NLC pushes for annual inflation-linked adjustments.

Demands:

• ₦250,000+ "living wage" proposals.
• Automatic indexation to CPI.
• Stronger private sector enforcement.

With inflation projected 25–30% in 2026, pressure mounts.

Conclusion: The Fight for Fair Wages Continues in 2025

The minimum wage in Nigeria at ₦70,000 marks progress amid hardship—but inflation, weak enforcement, and economic realities mean it's often insufficient for dignified living. From 1981's ₦125 to today's battles, wage policy mirrors Nigeria's struggles and resilience.

Stay informed—visit nlcng.org or tradingeconomics.com/nigeria/minimum-wages for updates. Know your rights? Share your state’s implementation experience in the comments, tag a colleague, and let's demand better. Fair wages build stronger Nigeria—advocate today!