Pushback over N70,000 allowance

By Idowu Isamotu, Daniel Adaji, Abuja & Abdullateef Aliyu, Lagos

The leadership of the Trade Union Congress (TUC) on Wednesday rejected the federal government’s proposed six-month N70,000 transportation allowance for workers.

The Congress, which described the government’s plan as a “haphazard measure” to cushion the effects of fuel subsidy removal, demanded an immediate salary increment for workers.

Daily Trust reports that the government had on Tuesday approved a N70,000 monthly transport allowance for public servants, beginning in November, to cushion the impact of rising living costs.

The approval was one of the resolutions reached at a conciliation meeting between the federal government and the Nigeria Labour Congress (NLC) in Abuja on Tuesday.

This followed renewed pressure from organised labour over workers’ welfare, the rising cost of living and outstanding agreements.

At the meeting, the government also approved the payment of outstanding peculiar allowance arrears, effective from May 1, 2026, in three equal monthly instalments beginning in November.

The meeting, which lasted several hours, witnessed a lot of disagreements and a series of back-and-forth, according to a senior labour leader who spoke to Daily Trust on condition of anonymity on Wednesday.

“What we first demanded during the meeting was immediate reduction of the fuel price, but those on the government side opposed it. This led to disagreements for hours before the chief conciliator appealed to everyone.

“After all the back-and-forth, the government side proposed N70,000 transport allowance for six months, not tagged wage award this time, and we reached a consensus on this,” the source said.

Although the parties agreed to immediately constitute a Minimum Wage Negotiation Committee, they failed to agree on the effective date for implementing the national minimum wage.

A memorandum of understanding signed at the end of the meeting, where the resolutions were contained, showed that leadership of the TUC was not part of the decision.

Checks showed that the MoU 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, Maigari Dingyadi.

TUC kicks

The TUC argued that while it is good to negotiate minimum wage, which will affect other cadres of workers, the government must raise the wage level immediately.

Speaking to journalists in Abuja shortly after rising from its National Administrative Council (NAC) meeting, the President of TUC, Festus Osifo, who was flanked by the General Secretary, Nuhu Toro, said there are no laws or historical practices stopping the government from doing so.

He maintained that temporary wage awards are not sustainable, arguing that the wage award agreed on October 2, 2023 was to be implemented until a minimum wage was fixed in 2024 but was not enforced holistically.

He said, “How do we go back to the same wage award that never benefited all workers? How can workers be expected to trust fresh promises when previous obligations remain outstanding?

“There was irregularity in the payment of the wage award of 2023. Those who even got up to four months’ wage award of N40,000 never got it every month, but with one or two months’ interval and several pushes.

“Over 80% of the states and informal sector never implemented any form of wage award. From the foregoing, we further reiterate our demand for a pay rise for all government workers, as salary is the only consistent and far-reaching pay that workers can rely upon.

“This was our position during the consultative interaction, and it’s still our position today, as we strongly believe that the long sacrifices of Nigerian workers should not be sacrificed on the altar of an ill-conceived temporary measure. Negotiations of a new national minimum wage must not become an excuse for postponing urgent pay increments.”

The labour leader said during the union’s last interaction with the government officials, it also maintained that the economic crisis affects not only federal workers but also state and local government employees.

He listed pensioners, private sector workers and workers in the informal economy as part of those who face rising costs of food, transportation, healthcare and other essentials.

The TUC, however, called on governments at all levels to implement measurable interventions to reduce the cost of essential goods and services.

It also charged the government to ensure timely payment of salaries and pensions, protect existing jobs, curb exploitative labour practices and revitalise the productive sector to create decent employment.

The Congress also reiterated that these interventions must be inclusive, adequately funded and supported by clear implementation timelines.

Osifo also charged the government to move beyond policy announcements and demonstrate tangible improvements in the living conditions of Nigerians.

Pensioners protest exclusion from transport allowance

Meanwhile, members of the Nigeria Union of Pensioners (NUP) have condemned their exclusion from the N70,000 monthly transport allowance approved for serving public servants.

At a press briefing in Abuja on Wednesday, they called on President Bola Ahmed Tinubu to intervene and ensure that pensioners are given fair consideration.

The NUP President, Godwin Abumisi, described the exclusion as “unjust”, saying retired workers were also grappling with rising transportation costs, food prices and healthcare expenses.

Abumisi, who was represented by the union’s Deputy President, Abdullahi Usman, argued that pensioners, who devoted their productive years to national service, should not be neglected in government measures designed to cushion the effects of rising living costs.

The NUP noted that retirees depend on public transportation to access hospitals, attend medical appointments, purchase food and meet other essential needs, adding that many pensioners struggle to survive on inadequate pensions.

The union also faulted organised labour for allegedly failing to adequately protect the interests of pensioners during negotiations over the transport allowance.

It described the situation as a reflection of the “insensitivity of civil servants to the plight of their former colleagues, whom they will eventually join in the retirement ship.”

Beyond the transport allowance, the NUP expressed concerns over the non-payment of the N25,000 monthly palliative promised by the federal government to vulnerable households, including pensioners, under its October 2, 2023, Memorandum of Understanding with the NLC and the TUC.

Under the agreement, the federal government committed to paying N25,000 monthly for three months, amounting to N75,000 per eligible beneficiary.

The union lamented that the commitment remained unfulfilled for eligible pensioners and called on the Federal Ministry of Humanitarian Affairs and Poverty Reduction, led by Dr Bernard Doro, to explain the status of the programme, identify obstacles to payment, and provide a definite implementation timeline.

It demanded that the government either extend the N70,000 monthly allowance to eligible retirees or introduce an equivalent support measure to address their transportation expenses.

The union also called for meaningful consultation with pensioners’ representatives whenever the government and organised labour negotiate welfare policies that could affect retirees.

The NUP said it would continue to pursue all legitimate and lawful means to protect the rights and welfare of its members if the government failed to address its concerns.

Meeting between the Federal Government and the leadership of the Nigeria Labour Congress (NLC) in Abuja on Tuesday.

Relief measures and implementation questions

The latest announcement adds to a growing list of interventions introduced by the President Tinubu administration to cushion the effects of economic reforms, rising food prices and higher transportation costs.

Approved in October 2023, the federal government introduced a N35,000 monthly wage award for federal workers as a temporary measure following the removal of the petrol subsidy. However, payments of the associated arrears experienced delays.

The Office of the Accountant-General of the Federation announced payments of arrears in May 2025, but subsequent instalments reportedly slipped beyond their initial schedules. In August 2026, the Minister of Finance and Coordinating Minister of the Economy directed that the outstanding wage awards be paid before the middle of the month.

The government has also implemented the N70,000 national minimum wage for federal workers, replacing the previous N30,000 statutory minimum wage. The National Youth Service Corps (NYSC) monthly allowance was also increased from N33,000 to N77,000.

However, the latest agreement with organised labour reveals that workers’ welfare concerns remain unresolved amid the rising cost of living.

The Presidential Compressed Natural Gas Initiative is another major component of the government’s strategy to reduce transportation costs following the removal of the petrol subsidy.

The programme seeks to lower the cost of transportation by promoting compressed natural gas (CNG) as an alternative fuel, deploying buses, providing vehicle-conversion kits and expanding refuelling infrastructure.

President Tinubu had said in late August that governors had agreed to take a series of measures to reduce the cost of transportation across the country through the adoption of CNG and electric vehicles in the public transport system by October 1.

Findings by this paper showed that many states have just one CNG station, some have two or three, while others have none amid a dearth of CNG conversion facilities in most states. Checks revealed that transport fares remain high across the country.

Meanwhile, the federal government said about 670 Compressed Natural Gas (CNG) buses have been deployed nationwide, while its cleaner cooking programme targets five million households by 2030 as part of efforts to expand access to affordable energy.

The figures were disclosed during a media engagement organised by the Decade of Gas Secretariat in collaboration with the Presidential Initiative on Compressed Natural Gas and Electric Vehicles (PI-CNG & EV) in Kano State recently.

Reacting to the federal government’s approval of a N70,000 monthly transport allowance for public servants, Comrade Omenazu Jackson, Chancellor of the International Society for Social Justice and Human Rights (ISSJHR), called for more inclusive economic relief measures to address the hardship facing millions of Nigerians outside the public service.

Jackson said the government must extend its social protection measures to informal sector workers, including petty traders, artisans, unemployed graduates, pensioners, farmers and other vulnerable groups struggling to afford necessities.

He said although civil servants deserved improved welfare, the government must also consider Nigerians who had no guaranteed monthly income, employment benefits or dependable social protection.

“The federal government’s announcement of a N70,000 monthly transportation allowance for eligible public servants raises an important question of social justice: What relief is available to the millions of Nigerians who are equally hungry but are neither civil servants nor beneficiaries of comparable welfare arrangements?” He asked.

Jackson acknowledged that the allowance could provide temporary relief to eligible workers but argued that its effectiveness should be assessed based on implementation, actual benefits to recipients and its contribution to addressing the wider cost-of-living crisis.

He urged the government to publish transparent reports detailing the allowance’s eligibility criteria, funding arrangements, payment schedules and implementation outcomes, stressing that public announcements must translate into measurable improvements in people’s lives.

The ISSJHR chancellor also urged the government to prioritise food affordability, strengthen agricultural production, expand employment opportunities and reduce the cost of essential goods and services.

He said the transport allowance should complement, rather than replace, a broader economic strategy addressing hunger, poverty and declining household purchasing power.

“The welfare of civil servants is important, but it must not be mistaken for the welfare of the entire Nigerian population,” Jackson said.

Also reacting to the issue, the Country Director of Accountability Lab Nigeria, Friday Odeh, said the intervention was insufficient to address the country’s wider cost-of-living crisis.

Odeh said Nigerians were justified in expressing frustration, arguing that a six-month transport payment to a fraction of the population could not resolve widespread hunger.

“Nigerians are right to be frustrated: hunger is not and cannot be solved by a six-month transport payment to a fraction of the population,” he said.

He described the allowance as a concession to labour pressure rather than a comprehensive hunger-relief programme, adding that its temporary nature and limited coverage raised questions about its ability to ease economic hardship.

The Accountability Lab director called for transparent payment records, independent monitoring and broader relief measures for Nigerians excluded from the allowance, including informal-sector workers, unemployed people, rural households and low-income families.

He recommended verified cash transfers, food support and subsidised transport as part of a wider response to the economic challenges facing households.

“Until payments arrive on time and coverage widens beyond April 2027, citizens are justified in treating this as a partial stopgap,” he said.

An economic expert, Dr. Marcel Okeke, said measures introduced by the government to bring relief to Nigerians had largely remained effective because there was no structure in place to make them work.

Okeke said Nigeria appears to be facing “a cul de sac,” saying the government is just “beating about the bush.”

He said, “What the government is doing now is too little, too late. For a government that has four years to be doing what it is doing now, why is it introducing these measures about 40 months after its inauguration, when it has only a few months left before the next election cycle gathers momentum?

“These are panic measures being introduced here and there, almost as if the government is trying to build a manifesto ahead of another election. There is a lot of motion without movement because none of the measures you have mentioned is truly addressing the plight of the people.

“The major challenge is the number of Nigerians that the economic reforms have pushed into poverty over the past three years. The cost of living has risen significantly, and the government needs to introduce measures that will genuinely improve people’s purchasing power. The most important thing is to come up with measures that will add more weight to the money in the pocket of Nigerians.

“For instance, the government is talking about a N70,000 transport allowance and salary increases. But we must ask what N70,000 can achieve in the present economic situation, that money can be exhausted within one or two weeks.

“What happens after that? Where is the money for food, healthcare, housing and taking care of the family? People have other essential expenses to meet. So, the entire intervention is too little and too late.”

Okeke also lamented that the petrol discount announced by the Nigerian National Petroleum Company Limited (NNPC) on petrol did not work.

He added, “The government also announced that transportation costs would crash nationwide from October 1. Has that happened? Consider the push for compressed natural gas (CNG). The infrastructure needed to support the transition is not available in many locations. How do you expect people to switch to gas-powered vehicles when the necessary facilities are not accessible?

“The government says priority should be given to public transport vehicles, but how many of these vehicles have been provided across the states? They remain few and far between. These interventions are being announced without sufficient structures to make them work. It is as if the government is sprinkling measures everywhere while engaging in propaganda.

“My question is: are these initiatives part of an established economic blueprint, or do government officials simply wake up and decide what to announce next? The best way to describe the situation is ad-hocism. Everything appears to be done on an ad hoc basis. You cannot manage a government or an economy that way. Every day, there is a new pronouncement, but the public is left wondering how the policies fit together.”

FG urged to cut fuel costs

Professor Mufutau Ijaiya, a financial and economic analyst, urged the federal government to explore an agreement with Dangote Refinery to reduce the cost of petroleum products, saying lower fuel prices could provide widespread relief to Nigerians grappling with the rising cost of living.

The professor questioned the effectiveness of wage awards and other financial interventions, arguing that rising prices could erode their benefits before workers received the payments.

“Once an increase in wages or allowances is announced, some traders and service providers may adjust their prices in anticipation, leaving workers with little or no real improvement in their purchasing power,” he said.

Ijaiya said the government needed to tackle inflation and address the underlying factors driving up the prices of essential goods and services rather than relying solely on wage awards, transport allowances and other financial assistance to workers.

“The government needs to find a way to bring inflation down because it remains very high,” he said, noting that global developments, including the Middle East crisis and the Russia-Ukraine conflict, had contributed to rising prices.

According to him, fuel prices have significant implications for the wider economy because of their effects on transportation, food production and the distribution of goods.

“Whenever oil prices rise, the effects are felt across the economy, including transportation, food production and the cost of delivering goods and services,” he said.

“I think the government should explore an agreement with Dangote Refinery to reduce the cost of fuel. It should look at the cost of production and consider whether crude oil can be supplied to the refinery at an agreed price, with a corresponding commitment to sell refined products at a price that provides relief to Nigerians,” he said.

The analyst acknowledged that supplying crude oil at a reduced price could affect government revenue but argued that the potential benefits to consumers should also be considered.

“If crude oil is supplied at a reduced price, the government may earn less from the transaction. However, the question is whether the country can afford to continue with the present situation when Nigerians are struggling with the high cost of living.

“I believe that 70 per cent of the petroleum products consumed in Nigeria are now refined locally by Dangote Refinery. The government should take advantage of this development to develop a solution that will benefit Nigerians,” he said.

According to him, the situation differs from the previous fuel subsidy regime, when the government faced the burden of supporting the prices of imported petroleum products.