The Federal Government has approved a monthly transport allowance of ₦70,000 for public service workers for six months, beginning in November 2026.
The decision followed a conciliation meeting between government representatives and the leadership of the Nigeria Labour Congress (NLC) in Abuja on Tuesday, October 27.
The intervention is intended to ease the financial pressure on workers amid rising transportation costs and broader cost-of-living challenges.
According to the agreement reached at the meeting, the allowance will run from November 2026 for six months. However, the memorandum of understanding did not specify the exact monthly payment dates or the administrative arrangements for disbursement.
FG, NLC Reach Agreement on Workers’ Welfare
The transport allowance was one of several resolutions reached during discussions between the Federal Government and organised labour.
The meeting was convened by the Federal Ministry of Labour and Employment to address disagreements over workers’ welfare, outstanding allowances and the implementation of previous agreements.
Labour Minister Muhammad Maigari Dingyadi chaired the meeting, while NLC President Joe Ajaero led the labour delegation.
Other signatories to the memorandum included Timi Yakubu, Director-General of the Budget Office, and Garba Abdul, Permanent Secretary of the Service Welfare Office in the Office of the Head of the Civil Service of the Federation.
The agreement followed renewed pressure from organised labour over the rising cost of living and unresolved welfare demands.
The government and the NLC agreed to pursue the implementation of the resolutions and review progress after one month.
Peculiar Allowance Arrears to Be Paid in Three Instalments
In addition to the transport intervention, the Federal Government approved the payment of outstanding peculiar allowance arrears.
The arrears will take effect from May 1, 2026, with payments scheduled to begin in November.
Under the agreement, the accumulated payments will be made in three equal monthly instalments. However, the memorandum did not disclose the total amount involved or provide a detailed breakdown of individual beneficiaries.
The payment is part of the broader effort to address outstanding financial commitments to public service workers.
Nevertheless, workers will have to await the implementation arrangements to know how the payments will be processed and reflected in their earnings.
The parties also encouraged state and local governments to participate in the intervention process. Labour unions were urged to press for implementation within their respective jurisdictions.
Minimum Wage Implementation Date Remains Unresolved
Despite the agreement on transport support, the government and organised labour did not reach a consensus on the effective date for implementing the national minimum wage under discussion.
Both parties agreed to constitute a Minimum Wage Negotiation Committee and begin meetings immediately.
The committee is expected to address the outstanding disagreement and advance discussions between the relevant stakeholders.
The unresolved issue means that the latest meeting produced an agreement on transport support but did not settle every aspect of the workers’ demands.
It is also important to distinguish the new transport intervention from Nigeria’s existing statutory minimum wage of ₦70,000 per month. The transport allowance is a separate measure, approved for a limited six-month period.
The parties have not announced a final resolution on the effective date of the minimum-wage implementation issue discussed at the meeting.
Government Agrees to Address Health Workers’ Outstanding Allowances
The agreement also covers outstanding allowances owed to health workers.
The Federal Government agreed to settle 19 months of allowance arrears within three months, beginning in December 2026.
However, the memorandum did not specify the total financial value of the arrears or the precise payment dates within that period.
The parties also discussed a proposed adjustment to the Consolidated Health Salary Structure, known as CONHESS.
The National Salaries, Incomes and Wages Commission is expected to update the cost implications of the proposed adjustment within three weeks. The assessment will enable the Presidential Committee on Salaries to consider the matter.
Until that review is completed and a decision is announced, the proposed CONHESS adjustment remains subject to further action.
The discussions reflect continuing efforts to address remuneration concerns within the public health sector.
Hazard Allowances for Agricultural Workers Under Review
The meeting also addressed hazard allowances for agricultural workers.
According to the resolutions, the Federal Ministry of Agriculture and Food Security had submitted the list of beneficiaries and associated costs to the National Salaries, Incomes and Wages Commission for verification.
The verification process is expected to take two weeks. Afterward, the commission is expected to issue an implementation template.
Consequently, payment will depend on the completion of the verification exercise and the subsequent administrative steps.
The government and labour representatives also discussed tax relief for workers. They agreed to refer the matter to the NLC’s National Executive Council, noting that taxation involves statutory considerations.
The memorandum did not announce a specific tax relief package or a date for its implementation.
Implementation Will Be Key to Workers’ Expectations
The transport intervention provides a defined period of financial support for eligible public service workers, beginning in November.
However, its practical impact will depend on timely payments and clear implementation arrangements.
The agreement also leaves several issues requiring further action, including minimum-wage discussions, the proposed CONHESS adjustment, agricultural workers’ hazard allowances and tax relief.
Both parties agreed to reconvene after one month to assess the level of implementation.
For workers, the next stage will be to establish whether the commitments translate into actual payments and measurable improvements in their welfare.
The latest agreement therefore represents progress on some outstanding demands, while negotiations continue on other issues affecting public servants.
