FG to pay workers N70,000 monthly transport allowance for 6 months

Hamzat Abdulqudus
5 Min Read

The Federal Government has approved a monthly transport intervention of ₦70,000 for public service workers across all levels for six months, beginning in November 2026, to cushion the impact of rising living costs.

The agreement was reached at a conciliation meeting between the Federal Government and the leadership of the Nigeria Labour Congress (NLC) in Abuja on Tuesday, following renewed pressure from organised labour over workers’ welfare and outstanding agreements.

The government also approved the payment of peculiar allowance arrears, effective from 1 May 2026, in three equal monthly instalments beginning in November.

However, both parties failed to agree on the effective date for implementing the national minimum wage. They agreed that a Minimum Wage Negotiation Committee would be constituted and begin meetings immediately.

The resolutions were contained 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.

Titled ‘Resolutions Reached at a Conciliation Meeting Held at Federal Ministry of Labour and Employment Between the Federal Government and the Leadership of Nigeria Labour Congress on Tuesday, 27th October 2026’, the document outlined agreements on transport support, outstanding allowances, minimum wage negotiations, health workers’ remuneration, tax relief and hazard allowances for agricultural officers.

The meeting followed an earlier conciliation session held on 22 October 2026 to address disagreements between the government and organised labour.

On the transport intervention, the memorandum stated: “That transport intervention of Seventy Thousand Naira (N70,000) commencing from November 2026 would be paid across all levels for a period of six months.”

However, the document did not specify the payment date within each month or provide details of the administrative arrangements for disbursement.

The agreement comes amid continuing concerns over transportation costs and the prices of essential goods following the removal of the petrol subsidy in May 2023, which contributed to rising living costs across the country.

Organised labour has repeatedly demanded measures to ease the economic pressure on workers, including reductions in petrol prices, improved wages and the implementation of outstanding welfare agreements.

The memorandum also documented the NLC leadership’s concerns about the government’s handling of its demands.

It stated that the union leadership “expressed concern over the Federal Government’s attitude towards the above issues”.

In response, the Federal Government “stated that it fully respects the right of the Congress to advocate for improved working conditions for Nigerian workers, and is genuinely trying to address every aspect of it through a structured intervention”.

On the national minimum wage, both parties agreed that a Minimum Wage Negotiation Committee would be constituted and begin meetings immediately.

However, they remained divided over the effective date for implementation.

The memorandum stated: “It was agreed that the Minimum Wage Negotiation Committee would be constituted and commence meeting immediately. It should, however, be noted that there is a disagreement on the effective date of implementation.”

The disagreement leaves a key issue unresolved despite the commitment to begin negotiations without delay.

The national minimum wage became a major issue in 2024 when the Federal Government and organised labour negotiated an increase in the statutory monthly minimum wage from ₦30,000 to ₦70,000. The new rate was subsequently enacted into law through the National Minimum Wage Act.

The latest agreement refers to further discussions on the minimum wage and its implementation date but does not specify the proposal under consideration or when the negotiations are expected to conclude.

The agreement provides for immediate financial interventions while leaving other workers’ demands subject to further negotiations, administrative verification or decisions by relevant government bodies.

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