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 cushion the effects of rising living costs.
The approval was one of the resolutions reached at a conciliation meeting between the Federal Government and the leadership of the Nigeria Labour Congress (NLC) in Abuja on Tuesday.
The meeting was convened to address disagreements over workers’ welfare, the rising cost of living and outstanding agreements between the government and organised labour.
According to a memorandum of understanding signed at the end of the meeting, the transport intervention would be paid across all levels of the public service for six months.
The document stated that the payment would commence in November 2026, although it did not specify the exact disbursement dates or the administrative arrangements for the payments.
The government also approved the payment of outstanding peculiar allowance arrears, effective from May 1, 2026. The arrears are to be paid in three equal monthly instalments beginning in November.
The meeting, however, ended without an agreement on the effective date for implementing the national minimum wage, although both parties agreed to constitute a Minimum Wage Negotiation Committee and begin meetings immediately.
The memorandum of understanding was signed by the Director-General of Budget, Timi Yakubu; NLC President, Joe Ajaero; the Permanent Secretary, Service Welfare Office, 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 on the outcome of the meeting, the NLC Assistant Secretary-General, Chris Onyeka, described the discussions as productive but said they fell short of the union’s expectations.
“It was productive, but not as we had expected,” Onyeka said.
He added that negotiations often involved compromises, noting that the parties could not achieve all their demands at once.
Onyeka also confirmed that the proposed Minimum Wage Negotiation Committee would be tripartite, comprising representatives of the government, workers and employers.
The latest meeting followed an earlier conciliation session held on October 22, 2026, by the Federal Ministry of Labour and Employment to address disagreements between the government and organised labour.
The agreement comes amid persistent concerns over rising transportation costs and the prices of essential commodities following the removal of the petrol subsidy in May 2023.
Organised labour has repeatedly called for measures to ease the economic pressure on Nigerian workers, including improved wages, lower transportation costs and the implementation of outstanding welfare agreements.
On the national minimum wage, the parties agreed to begin negotiations immediately, but the effective date of implementation remained unresolved.
The memorandum also provided for the settlement of 19 months of outstanding allowances for health workers within three months, beginning in December 2026.
It further stated that the National Salaries, Incomes and Wages Commission would complete an assessment of the cost implications of a proposed adjustment to the Consolidated Health Salary Structure (CONHESS) within three weeks to enable the Presidential Committee on Salaries to make a decision.
On hazard allowances for agricultural officers, the Federal Ministry of Agriculture and Food Security had submitted the list of beneficiaries and the associated costs to the commission for verification. The verification is expected to be completed within two weeks, after which an implementation template would be issued.
The parties also agreed to refer the issue of tax relief for workers to the National Economic Council for further consideration.
The memorandum urged state and local governments to participate in the intervention process and called on unions to push for the implementation of the resolutions.
It added that representatives of the Federal Government and the NLC would reconvene after one month to review progress on the agreements.
While the transport allowance and other financial interventions offer some relief to public servants, the implementation of the resolutions and the resolution of outstanding disagreements will determine the extent to which the agreement improves workers’ welfare.
