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US Contradicts WTO Director-General Ngozi Okonjo-Iweala Over Nigeria’s Economy



The United States has disputed World Trade Organization (WTO) Director-General Dr. Ngozi Okonjo-Iweala’s assessment of Nigeria’s economy, citing that the new minimum wage of N70,000 hasn’t improved the standard of living for Nigerian workers due to the continued depreciation of the Naira.

The US report highlights that the minimum wage, pegged at about $47.90 per month, has lost its value due to the Naira trading at over N1,500 to the dollar. This has resulted in the wage being no longer higher than the poverty income level. Furthermore, the law only applies to employers with 25 or more full-time staff, leaving most workers in the informal economy unprotected.

Some key points from the report include¹ ²:
– Naira Depreciation: The Naira’s continued depreciation has undermined the new minimum wage, making it difficult for workers to afford basic necessities.
– Limited Coverage: The minimum wage law only applies to a small portion of the workforce, with most workers operating in the informal economy.
– Enforcement Issues: The government rarely enforces minimum wage and overtime laws, with penalties being low and not commensurate with other crimes like fraud.
– Informal Economy: Between 70 and 80 percent of Nigeria’s working population operates in the informal economy, where authorities fail to enforce wage, hour, and occupational safety and health laws.

Dr. Okonjo-Iweala had commended President Tinubu’s administration for restoring stability to Nigeria’s economy, but the US report presents a contrasting view, highlighting the challenges faced by Nigerian workers.

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