The Federal Government has approved a monthly transport allowance of N70,000 for public servants for six months, beginning in November 2026, as part of measures to ease the impact of rising living costs on workers.
The approval followed a conciliation meeting between the government and the Nigeria Labour Congress (NLC) in Abuja on Tuesday, October 27, amid renewed pressure from organised labour over workers’ welfare, outstanding allowances and the implementation of minimum wage agreements.
The agreement also provides for the payment of outstanding peculiar allowance arrears in three equal monthly instalments from November 2026, while negotiations over the effective date for implementing the national minimum wage remain unresolved.
The resolutions were documented in a memorandum of understanding signed by the Director-General of Budget, Timi Yakubu; NLC President, Joe Ajaero; the Permanent Secretary of the Service Welfare Office in the Office of the Head of the Civil Service of the Federation, Dr Garba Abdul S.U.; and the Minister of Labour and Employment, Dr Muhammad Maigari Dingyadi.
According to the memorandum, the transport intervention of N70,000 monthly will apply across all levels of the public service for six months. However, the document did not provide specific payment dates or details of the disbursement process.
Speaking after the meeting, NLC Assistant Secretary-General Chris Onyeka described the discussions as productive but said the outcome did not fully meet labour’s expectations.
“It was productive, but not as we had expected,” he said, noting that negotiations often require compromises from both parties.
Onyeka confirmed that the proposed Minimum Wage Negotiation Committee would comprise representatives of the government, organised labour and employers.
Although both parties agreed to establish the committee and begin negotiations immediately, they failed to reach an agreement on when the minimum wage implementation under discussion should take effect.
The memorandum stated that the committee would be constituted without delay but acknowledged that disagreement over the effective date remained.
The latest development follows prolonged discussions over workers’ remuneration and purchasing power amid rising transportation, food and other household costs.
Nigeria’s statutory minimum wage was increased from N30,000 to N70,000 monthly in 2024 following negotiations between the Federal Government and organised labour. The new rate was subsequently enacted into law.
However, the latest memorandum did not specify the precise minimum wage proposal under consideration or provide a timeline for concluding the new negotiations.
The Federal Government also approved the payment of outstanding peculiar allowance arrears, effective from May 1, 2026. Payments are scheduled to begin in November and be spread across three equal monthly instalments.
The agreement did not disclose the total amount involved or the number of workers expected to benefit.
For health workers, the government agreed to settle 19 months of outstanding allowance arrears over three months, beginning in December 2026.
Meanwhile, the National Salaries, Incomes and Wages Commission has been given three weeks to complete an updated assessment of the financial implications of the proposed adjustment to the Consolidated Health Salary Structure (CONHESS).
The assessment will inform the Presidential Committee on Salaries’ consideration of the proposed adjustment. No final decision has been announced.
The payment of hazard allowances to eligible agricultural officers also featured in the agreement.
According to the memorandum, the Federal Ministry of Agriculture and Food Security had submitted the list of beneficiaries and the associated cost implications to the National Salaries, Incomes and Wages Commission for verification.
The verification exercise is expected to be completed within two weeks, after which the commission will issue an implementation template.
The agreement did not specify the number of eligible officers or the total value of the proposed payments.
On tax relief for workers, the parties agreed to refer the matter to the National Executive Council for consideration, citing the statutory implications of taxation.
No specific tax relief measures or timeline for a decision were provided.
The memorandum urged state and local governments to participate in the intervention process, while encouraging unions to press for the implementation of the agreed measures.
The parties also agreed to reconvene after one month to assess progress on the resolutions, including the transport allowance, outstanding peculiar allowances and other welfare-related commitments.
The meeting followed an earlier conciliation session convened by the Federal Ministry of Labour and Employment on October 22 to address disagreements between the government and organised labour.
In the memorandum, the NLC expressed concern over the government’s handling of workers’ demands, while the Federal Government reaffirmed its commitment to addressing the issues through structured engagement.
The latest agreement provides immediate financial support through the transport allowance and sets timelines for some outstanding payments. However, key issues, particularly the effective date of minimum wage implementation, the proposed CONHESS adjustment and workers’ tax relief, remain subject to further decisions.
The extent to which the agreement improves workers’ welfare will depend on timely implementation and the outcome of the next review meeting.
