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 efforts to cushion the effects of rising living costs.
The decision followed a conciliation meeting between the government and the Nigeria Labour Congress (NLC) in Abuja on Tuesday, October 27, amid continued negotiations over workers’ welfare, outstanding allowances and minimum wage implementation.
Under the agreement, workers will receive the transport allowance across all levels of the public service for six months. However, the memorandum of understanding (MoU) did not specify payment dates or explain how the allowance would be disbursed.
The government also agreed to pay outstanding peculiar allowance arrears in three equal monthly instalments, starting in November 2026, with the payments calculated from May 1, 2026.
The agreement was 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.
Speaking after the meeting, NLC Assistant Secretary-General, Chris Onyeka, described the discussions as productive but said the outcome fell short of labour’s expectations.
“It was productive, but not as we had expected,” Onyeka said, adding that negotiations often require compromises from both parties.
On the national minimum wage, the government and labour agreed to establish a committee comprising representatives of the government, organised labour and employers to begin negotiations immediately.
However, both parties failed to agree on the effective date for implementing the minimum wage adjustment under discussion. The MoU stated that the committee would be constituted without delay but gave no timeline for concluding the negotiations.
Nigeria’s minimum wage was increased from N30,000 to N70,000 monthly in 2024 following negotiations between the Federal Government and organised labour. The latest agreement did not specify the new proposal being considered or indicate whether the talks would result in a further adjustment.
For health workers, the government agreed to settle 19 months of outstanding allowance arrears over three months, beginning in December 2026.
The National Salaries, Incomes and Wages Commission was also given three weeks to complete an assessment of the financial implications of a proposed adjustment to the Consolidated Health Salary Structure (CONHESS). The assessment will guide the Presidential Committee on Salaries, but no final decision has been announced.
The payment of hazard allowances to eligible agricultural officers was also addressed. According to the MoU, the Federal Ministry of Agriculture and Food Security had submitted the list of beneficiaries and the cost implications to the commission for verification.
The verification is expected to be completed within two weeks, after which the commission will issue an implementation template. The agreement did not disclose the number of eligible officers or the total amount involved.
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 relief measures or timeline for a decision were announced.
The MoU also urged state and local governments to participate in the intervention process and encouraged unions to pursue the implementation of the agreed measures.
The latest agreement comes amid continued pressure from organised labour over workers’ purchasing power as transportation, food and other household expenses riseu
