FG Approves N70,000 Monthly Transport Allowance for Workers for Six Months

The Federal Government has approved a N70,000 monthly transport intervention for public service workers across all levels for six months, beginning in November 2026, as part of measures to ease the impact of rising living costs.

The approval was one of the major resolutions reached at a conciliation meeting between the Federal Government and the leadership of the Nigeria Labour Congress (NLC) in Abuja on Tuesday, October 27, 2026.

The meeting, convened by the Federal Ministry of Labour and Employment, followed renewed pressure from organised labour over workers’ welfare, the cost of living and the implementation of outstanding agreements.

In addition to the transport intervention, the government 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.

However, the two parties failed to reach an agreement on the effective date for implementing the national minimum wage, although they resolved to constitute the Minimum Wage Negotiation Committee and begin meetings immediately.

FG, NLC Sign Agreement

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.

The document, 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, outlined agreements covering transport support, minimum wage negotiations, outstanding allowances, health workers’ remuneration, tax relief and hazard allowances for agricultural officers.

On the transport intervention, the memorandum stated that a monthly payment of N70,000 would commence in November 2026 and continue for six months across all levels.

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

Agreement Comes Amid Rising Living Costs

The intervention comes amid continuing concerns over transportation costs and the prices of essential goods following the removal of the petrol subsidy in May 2023.

The resulting economic pressures have prompted repeated demands from organised labour for measures to improve workers’ purchasing power, including better wages, lower fuel costs and the implementation of outstanding welfare agreements.

The memorandum also documented the NLC leadership’s concerns about the government’s response to its demands.

According to the document, the union expressed concern over the Federal Government’s attitude towards the issues raised during the negotiations.

In response, the government reaffirmed its recognition of organised labour’s right to advocate for improved working conditions, stating that it was making efforts to address the demands through structured interventions.

Minimum Wage Implementation Date Remains Unresolved

Despite the agreements reached on transport support and allowance arrears, the effective date for implementing the national minimum wage remains a point of disagreement between the government and organised labour.

The memorandum stated that both parties agreed to constitute the Minimum Wage Negotiation Committee and commence meetings immediately.

However, it noted that the parties remained divided over the effective date of implementation.

The disagreement leaves a key issue unresolved, even as both sides have committed to resuming discussions without delay.

The national minimum wage was a major subject of negotiations in 2024, when the Federal Government and organised labour agreed to increase the statutory monthly minimum wage from N30,000 to N70,000. The new rate was subsequently enacted into law.

The latest memorandum, however, does not specify the precise proposal currently under consideration or indicate when negotiations over the implementation date are expected to conclude.

Other Workers’ Welfare Issues on the Agenda

Beyond the transport intervention and peculiar allowance arrears, the memorandum outlined other issues relating to workers’ welfare, including health workers’ remuneration, tax relief and hazard allowances for agricultural officers.

The meeting followed an earlier conciliation session held on October 22, 2026, as the Federal Ministry of Labour and Employment sought to address disagreements between the government and organised labour.

While the latest agreement provides for immediate financial interventions and further negotiations, the implementation of some outstanding demands remains subject to additional discussions, administrative arrangements and decisions by the relevant government authorities.