Nigeria isn’t just Africa’s most populous country; it’s a complex, bustling economy where over 60% of the population is under 25, and where informal workers outnumber the formally employed by a wide margin. While Lagos and Abuja hum with the energy of startups and remote-first roles, much of the country is still gripped by underemployment, low wages, and late salary payments.

The labor force is ambitious, tech-savvy, and deeply resilient. But the system they operate in? Not so much. 

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Here’s What to Know About the Minimum Wage in Nigeria

As of May 2024, Nigeria’s federal government officially increased the national minimum wage to NGN 70,000 per month, a long-overdue adjustment in the face of spiraling inflation, rising cost of living, and union pressure.

But here’s the twist: implementation is practically non-existent.

Despite the announcement, most employers continue to pay the previous wage of NGN 30,000 or less. The institutions responsible for enforcement, like the National Salaries, Incomes and Wages Commission (NSIWC) and the Ministry of Labour and Employment, are either chronically underfunded or functionally asleep at the wheel.

So while NGN 70,000 is the “official” number, what workers actually receive tells a very different story.

Who Sets the Minimum Wage, and How Often?

The national minimum wage is reviewed by Nigeria’s Tripartite Committee, comprising representatives from the federal government, organized labor (such as the NLC and TUC), and employers’ associations.

Legally, it should be reviewed every five years, but in reality, it takes sustained strike threats, protests, and political heat for the conversations to even begin. The 2024 increase to NGN 70,000 came only after months of tense negotiations and brinkmanship.

However, even after setting the wage, enforcement remains a grey area. No centralized wage monitoring framework exists, and state-level compliance is patchy at best. Some states implement it partially, others ignore it entirely.

Can You Really Survive on NGN 70,000?

Let’s put things in context.

NGN 70,000 is about USD 50. So, no. You can’t.

With the naira’s ongoing depreciation and headline inflation reaching 33.7% as of April 2025, NGN 70,000 barely covers a week’s worth of living in even some rural communities. 

Even for single adults, this wage is barely enough for survival, let alone for people with families and children. The average salary earner is forced to rely on remittances, informal credit systems, or multiple income streams just to make it through the month.

The lived reality for most Nigerians is that wages have not kept pace with costs, and no amount of policy revisions matters unless implementation mechanisms are strengthened.

Employer Obligations Under Nigeria’s Wage Framework

Employers in Nigeria, whether local SMEs or multinational companies, are legally expected to pay no less than the national minimum wage of NGN 70,000 per month to ALL full-time employees.

They must also:

  • Register with relevant labor and tax authorities, including the Federal Inland Revenue Service (FIRS), National Pension Commission (PENCOM), and Industrial Training Fund (ITF).
  • Make monthly remittances of statutory deductions like Pension (10% employer share), NSITF, ITF, and Employee Compensation Scheme.
  • Ensure accurate payroll documentation, maintain contracts, and provide payslips that accurately reflect both gross and net wages.

Non-compliance can attract financial penalties, reputational damage, or even exclusion from government contracts and procurement processes. However, enforcement is largely driven by the formality of the workplace, so larger, well-structured firms are more likely to comply than informal outfits.

Are Minimum Wage Workers Entitled to Statutory Benefits?

Yes. All employees—minimum wage earners included—are entitled to a suite of benefits under Nigeria’s labor laws and social security framework.
Benefit Type Details
Pension Contributions 10% employer + 8% employee (mandatory for companies with 15 or more employees)
Employee Compensation Scheme Covers work-related injuries, disabilities, or death
Health Insurance Provided under the National Health Insurance Scheme (NHIS)
Leave Entitlements Maternity, annual, and sick leave as defined in the Labour Act
These benefits help compensate for what the cash component of the wage may lack, particularly in terms of long-term financial security and workplace protections.

Role of Trade Unions and Collective Bargaining

Unions like the Nigeria Labour Congress (NLC) and the Trade Union Congress (TUC) have been instrumental in wage negotiations. They were at the forefront of the push for the NGN 70,000 update and continue to lobby for stronger enforcement and regular reviews.

While collective bargaining agreements (CBAs) are not widespread across all sectors, they are prevalent in industries such as oil and gas, aviation, and finance, often resulting in compensation packages that exceed the minimum.

Wage Trends: What Does the Future Hold?

While Nigeria’s minimum wage has historically lagged behind inflation, union activism, social media visibility, and regional benchmarking are helping push the conversation forward.

The 2024 raise to NGN 70,000 was a response to economic realities, and a minimum wage bill proposing automatic adjustments every five years is under consideration.

In urban centers like Lagos and Abuja, some companies, especially international employers, voluntarily pay astronomically higher wages to stay competitive and attract top talent. Some even outrightly pay in USD. This signals a potential shift from legal compliance toward wage-based employer branding.

Simplify Wage Compliance in Nigeria with Remote People

Nigeria’s wage framework can be complex, but it’s manageable with the right tools. Remote People’s Global Payroll Calculator helps you estimate taxes, net salaries, and compliance costs based on local rules. You can also lean on our Employer of Record (EOR) services to manage contracts, benefits, and local payroll while staying fully compliant.

Whether you’re hiring tech talent in Lagos or building remote-first support teams in Ibadan, we help you focus on growth, not bureaucracy.