Nigeria Minimum Wage - Frequently Asked Questions

Is there a separate legislation relating to minimum wages in Nigeria?

The Nigerian Minimum Wage Act governs minimum wages in Nigeria.

Do one or more minimum wages exist that is/are determined by law?

There is only one minimum wage act that covers both public and private sector. It also covers workers at federal, state and local government levels.

At what level is minimum wage determined at?

Minimum Wage is determined at the national level between the government, labour and employers. A national minimum wage is set to cover workers generally in the private and public sector.

On what basis is minimum wage calculated?

The minimum wage are calculated on monthly basis. The current national minimum wage of N18000 (eighteen thousand naira) was calculated based on cost of living calculated by trade unions based on inflations and statistical data from the national bureau of statistics and other related.

In case of weekly/monthly minimum age, are they based on any fixed number of hours?

The minimum wage in Nigeria is based on monthly income with an average working period of 8 hours daily and 5 days weekly.

Are governmental bodies, employer and/or trade union representatives involved in minimum wages setting?

Yes. The parties to minimum wages setting are: the trade union centres (Nigeria Labour Congress and Trade union congress) the employers agency (NECA) and the federal government (represented by the presidency, federal ministry of finance, federal ministry of labour and productivity).

How are upratings (adjustments) of minimum wage/s decided upon?

Periodically (usually an average of 3 years), through a tripartite (labour, government and employers) which then make recommendation to the federal government (presidency).

Which are the components of minimum wage in Nigeria?

There is only one item, which is a fixed monthly income.

What is/are the yardstick/s on which minimum wage upratings are based?

The yardstick used for uprating of minimum wage is Cost of living index, inflation and the ability to pay by employers.

What is the national poverty line? (In national currency)

The national poverty line in Nigeria is $2 (330 naira).

How often is poverty line updated?

The poverty profile for Nigeria is updated annually by the National Bureau of statistics, however the poverty line is updated at an average of ten years.

When was poverty line last updated? (Specify YYYY/MM)

The last poverty line was updated in June 2014.

What is the percentage of minimum wage relative to the current poverty line?

The percentage of minimum wage relative to the current poverty line is 55%.

What is the incidence of minimum wages(s) in the national labour force (wage earners only)?

The incidence of minimum wage in the national labour force is about 40%.

How is minimum wages compliance regulated?

Minimum Wage compliance is regulated by the Ministry Labour, Trade Unions and the general legal system.

Which legal sanctions can be applied in compliance is lacking?

There are fines prescribed by the Minimum Wage Act. However, this is usually not applied. Trade unions often resort to strikes and sometimes court action to enforce compliance.

Are sanctions often being applied?

Sanctions are sometimes applied.

Are employer and/or trade union representatives involved in compliance procedures?

Yes employer and trade union representatives are involved in compliance procedures.

To whom/Where can individuals complain, if they think they are earning less than minimum wage?

In case of non compliance, individual can complain to labour inspectorate.

Which month of the year is minimum wage rate revised Nigeria?

The minimum wage rate revision is not done in a particular time of the year. Its time is irregular. However, the law states a five yearly review. The last update was in 2010 after a year of collective bargaining between the trade unions, the government and private sector employers (2008-2009).