The minimum wage in Nigeria is ₦70,000 per month. It was set by the National Minimum Wage (Amendment) Act 2024, which President Bola Tinubu signed into law on July 29, 2024, and it has not changed since. At the official exchange rate in late September 2026 (about ₦1,328 to $1), that works out to roughly $53 a month.
If you employ people in Nigeria, the headline figure is only the starting point. You also need to know who the law actually covers, which businesses are exempt, what you pay on top of salary, and whether a new rate is on the way. This guide explains each of those in plain terms.
Key takeaways
- The national minimum wage is ₦70,000 per month and applies to public and private employers alike.
- Businesses with fewer than 25 workers are exempt, and so are part-time, commission-based, piece-rate and seasonal workers.
- The next statutory review is due in 2027, but the Federal Government has already said ₦70,000 no longer reflects living costs, so a new rate could arrive sooner.
- On top of salary, employers pay at least 10% pension, 1% to the Employee Compensation Scheme and, in many cases, 1% to the Industrial Training Fund. A worker on ₦70,000 costs about ₦78,400 a month.
- Minimum wage earners pay no personal income tax under the Nigeria Tax Act 2025.
- Higher state rates, such as ₦85,000 in Lagos, apply to state government workers, not private employers.
What is the current minimum wage in Nigeria?
The current minimum wage in Nigeria is ₦70,000 per month for a full-time worker. It replaced the ₦30,000 rate that had applied since 2019. The 2024 amendment also shortened the review cycle from five years to three, so the rate is now meant to be looked at again every three years instead of every five.
| Year | Monthly minimum wage | Law |
|---|---|---|
| 2011 | ₦18,000 | National Minimum Wage (Amendment) Act 2011 |
| 2019 | ₦30,000 | National Minimum Wage Act 2019 |
| 2024 | ₦70,000 | National Minimum Wage (Amendment) Act 2024 |
Will Nigeria’s minimum wage increase in 2026?
As of September 2026, no new minimum wage has been announced, so ₦70,000 is still the legal floor. Under the three-year cycle, the next formal review is not due until 2027. Pressure for an earlier increase is building, though. In June 2026, the President’s Chief of Staff, Femi Gbajabiamila, said publicly that ₦70,000 no longer matches the country’s economic reality and signalled that pay would be reviewed. Labour groups have put forward demands ranging from ₦154,000 to as much as ₦500,000.
For employers, the practical step is to plan for a rise rather than be caught out by one. Budget some headroom for low-paid roles and write employment contracts so salaries can be adjusted when the law changes. We will update this page as soon as a new rate is signed into law.
Who does the minimum wage apply to?
The minimum wage applies to workers employed by the federal government, state and local governments, and private companies. The wage must be paid in full, with only lawful deductions such as pension and tax taken out.
The law does not apply to everyone, though. The following are exempt:
- Establishments that employ fewer than 25 workers
- Part-time workers
- Workers paid on commission or by piece rate
- Seasonal workers, such as those in agriculture
- People working on a vessel or aircraft who are covered by merchant shipping or civil aviation law
The Minister of Labour can also grant further exemptions by order. Keep in mind that an exemption only means the law does not force you to pay ₦70,000. It does not make a lower wage competitive, and in practice most formal employers pay well above it.
Independent contractors are not employees, so the Act does not cover them. But calling someone a contractor does not settle the question. If the person works like an employee, with fixed hours, your tools and your direction, treating them as a contractor to avoid obligations is a real legal risk.
Do Nigerian states have their own minimum wage?
Yes, but only for their own civil servants. After the 2024 Act, each state negotiated a wage for state and local government workers, and several went above the federal floor. These state rates do not bind private companies. A private employer in Lagos is legally required to pay at least ₦70,000, not ₦85,000.
State rates are still worth knowing. They show what workers in that state see as a baseline, which affects what you need to offer to attract people.
| State | Civil service minimum wage | In effect from |
|---|---|---|
| Imo | ₦104,000 | 2025 |
| Ebonyi | ₦90,000 | August 2025 |
| Lagos | ₦85,000 | October 2024 |
| Rivers | ₦85,000 | November 2024 |
| Niger, Enugu, Akwa Ibom, Bayelsa, Oyo | ₦80,000 | Late 2024 to early 2025 |
Source: state government announcements, as compiled by Nairametrics (May 2026). Bayelsa’s rate is being phased in.
What does a minimum wage employee cost an employer in Nigeria?
A minimum wage employee in Nigeria costs more than ₦70,000 a month, because employers also pay statutory contributions. Here is what applies:
| Contribution | Who pays | Rate | When it applies |
|---|---|---|---|
| Pension | Employer | At least 10% of pensionable pay | Employers with 3 or more staff (Pension Reform Act 2014) |
| Pension | Employee (deducted) | At least 8% of pensionable pay | Same as above |
| Employee Compensation Scheme | Employer | 1% of total monthly payroll | All employers, paid to NSITF |
| Industrial Training Fund | Employer | 1% of annual payroll | 5 or more staff, or annual turnover of ₦50 million or more |
| Personal income tax (PAYE) | Employee (withheld by employer) | 0% at minimum wage | Nigeria Tax Act 2025, in force since January 1, 2026 |
Pensionable pay means basic salary plus housing and transport allowances. For a minimum wage worker, that is usually the full ₦70,000.
Worked example: one employee on ₦70,000
| Gross monthly salary | ₦70,000 |
| Employer pension (10%) | ₦7,000 |
| Employee Compensation Scheme (1%) | ₦700 |
| Industrial Training Fund (1%, if it applies) | ₦700 |
| Total monthly cost to employer | ₦78,400 (about $59) |
| Employee pension deduction (8%) | ₦5,600 |
| PAYE income tax | ₦0 |
| Employee take-home pay | ₦64,400 |
Assumes the full ₦70,000 is pensionable pay. Dollar figure uses the official NFEM rate of about ₦1,328 to $1 on September 25, 2026.
Most roles that foreign companies hire for pay far more than the minimum. For realistic figures by role, city and seniority, see our guide to the average salary in Nigeria and our breakdown of software engineer salary in Nigeria. You can also estimate total overhead with our employee cost calculator guide.
Planning a hire in Nigeria? Get a full monthly cost breakdown for your role, including pension, NSITF, ITF and tax, from Betternship’s hiring team. Request a cost breakdown.
What benefits are minimum wage workers entitled to?
Minimum wage workers are entitled to the same statutory benefits as any other employee. The wage is a floor for pay, not a separate category of worker.
| Benefit | What the law provides |
|---|---|
| Pension | Employer and employee contributions paid into the worker’s retirement savings account |
| Work injury cover | Compensation for work-related injury, illness or death through the Employee Compensation Scheme |
| Annual leave | At least 6 working days of paid leave after 12 months of continuous service (Labour Act) |
| Sick leave | Up to 12 working days of paid sick leave a year, with a medical certificate (Labour Act) |
| Maternity leave | 12 weeks, paid at least 50% of wages for workers with 6 or more months of service (Labour Act) |
| Health insurance | Covered under the National Health Insurance Authority Act 2022, which replaced the old NHIS |
Many employers offer more than the legal minimum, especially on leave and health cover. For a fuller picture, see our guide to employee benefits in Nigeria.
What happens if an employer pays below the minimum wage?
Paying below the minimum wage is a criminal offence under the National Minimum Wage Act. A court can fine the employer, order them to pay all the wages the worker is owed, and add further penalties for every period the underpayment continues. Workers can take their case to the National Industrial Court or file a complaint with the Federal Ministry of Labour and Employment.
The Act also requires employers to keep accurate wage records, and labour officers can inspect them. The simplest protection is a clean payroll: written contracts, payslips that show gross pay and every deduction, and statutory remittances made on time.
How do foreign companies stay compliant when hiring in Nigeria?
Foreign companies usually hire in Nigeria in one of three ways, and each handles minimum wage and payroll compliance differently.
Set up a local entity. You register a Nigerian company and employ staff directly. You get full control, but you also take on registration with PenCom, NSITF, ITF, the Nigeria Revenue Service and the state tax authority, plus monthly remittances and filings. This usually makes sense once you have a sizeable team in the country.
Hire freelancers or contractors. This is the fastest and lightest option for project work, and the Minimum Wage Act does not cover genuine contractors. The risk comes when a contractor works like a full-time employee, which can expose you to claims for unpaid statutory benefits.
Use an Employer of Record. An Employer of Record, like Betternship, legally employs your hire in Nigeria on your behalf. We run payroll, remit pension, NSITF, ITF and PAYE to the right bodies, and update pay when the minimum wage changes, while you manage the person’s day-to-day work. It is usually the quickest way to hire full-time staff without setting up a company. Learn more about our Employer of Record in Nigeria service, or read how an Employer of Record compares with a PEO.
Talk to Betternship about hiring in Nigeria
Frequently asked questions about the minimum wage in Nigeria
What is the minimum wage in Nigeria in 2026?
The minimum wage in Nigeria in 2026 is ₦70,000 per month. It was set by the National Minimum Wage (Amendment) Act 2024 and has not changed since it was signed on July 29, 2024.
When will Nigeria’s minimum wage increase?
Nigeria’s minimum wage is due for its next statutory review in 2027, under the three-year cycle set by the 2024 Act. The Federal Government signalled in June 2026 that a review is coming, but no new rate has been announced yet.
Does the minimum wage apply to small businesses in Nigeria?
No, the minimum wage does not apply to small businesses in Nigeria that employ fewer than 25 workers. Part-time, commission-based, piece-rate and seasonal workers are also exempt.
Do private companies in Lagos have to pay ₦85,000?
No, private companies in Lagos do not have to pay ₦85,000. That rate applies to Lagos State civil servants. Private employers in Lagos must pay at least the national minimum wage of ₦70,000.
Do minimum wage earners pay tax in Nigeria?
No, minimum wage earners do not pay personal income tax in Nigeria. Under the Nigeria Tax Act 2025, which took effect on January 1, 2026, income at or below the national minimum wage is exempt.
How much does it cost to employ someone on minimum wage in Nigeria?
Employing someone on minimum wage in Nigeria costs about ₦78,400 a month. That covers the ₦70,000 salary, 10% employer pension, 1% to the Employee Compensation Scheme, and 1% to the Industrial Training Fund where it applies.
