The Federal Government has approved a monthly transport allowance of N70,000 for public service workers across all levels for six months, beginning in November 2026, as part of measures to cushion the impact of rising living costs.
The approval was contained in a memorandum of understanding (MoU) signed at the end of a conciliation meeting between government representatives and leaders of the Nigeria Labour Congress (NLC) in Abuja on Tuesday.
The agreement was signed by the Director-General of the Budget Office, Tanimu Yakubu; NLC President, Joe Ajaero; Permanent Secretary of the Service Welfare Office in the Office of the Head of the Civil Service of the Federation, Garba Abdul; and Minister of Labour and Employment, Muhammad Dingyadi.
The meeting followed weeks of tension between the government and organised labour over rising living costs, workers’ welfare and delays in implementing outstanding agreements, with the NLC threatening industrial action if its demands were not addressed.
Under the agreement, the government also approved the payment of outstanding peculiar allowance arrears dating back to May 1, 2026. The arrears are to be paid in three equal monthly instalments beginning in November.
However, the parties failed to reach an agreement on the effective date for implementing the national minimum wage. They instead agreed to establish a committee to negotiate the issue, with discussions expected to begin immediately.
The MoU further outlined agreements on outstanding workers’ allowances, health workers’ remuneration, tax relief measures and hazard allowances for agricultural officers.
The document also noted the NLC leadership’s concerns over the Federal Government’s handling of the issues raised during negotiations.
In response, the government said it “fully respects the right of the congress to advocate for improved working conditions for Nigerian workers” and was making efforts to address the demands through a structured intervention.
Despite the approval, the agreement did not specify the exact date each month the N70,000 transport allowance would be paid or outline the administrative procedures for disbursement.
BACKGROUND
The agreement comes amid mounting pressure from organised labour over the rising cost of living, partly attributed to high petrol prices.
On Thursday, the NLC extended its initial two-week ultimatum to the Federal Government until Tuesday, October 27, demanding action on workers’ welfare and other unresolved issues.
The union had warned of possible nationwide industrial action if negotiations failed to produce satisfactory outcomes.
In a statement, the NLC’s Acting General Secretary, Benson Upah, said the extension followed a meeting between government representatives and labour leaders that ended without a resolution.
According to Upah, the meeting was adjourned at the request of the Minister of Labour to enable the government to bring relevant ministers and heads of departments and agencies into further discussions.
The NLC’s demands include reducing petrol prices to 2024 levels, renegotiating the national minimum wage and implementing agreed tax relief measures.
The union is also seeking the implementation of outstanding agreements involving the Joint Health Sector Unions and Assembly of Healthcare Professionals (JOHESU), alongside the resolution of demands raised by the Joint Public Sector Negotiating Council (JPSNC).
Upah identified peculiar allowances, wage awards and hazard allowances among the outstanding issues under the JPSNC demands.
He maintained that although the NLC remained committed to dialogue, it would not accept indefinite delays in resolving workers’ grievances.
