FG approves N70,000 monthly transport allowance for workers for six months

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, to cushion the impact of rising living costs.

The approval was announced in a memorandum of understanding (MoU) issued at the end of a conciliation meeting between government representatives and leaders of the Nigeria Labour Congress (NLC) in Abuja on Tuesday.

The MoU was signed by Tanimu Yakubu, director-general of the budget office; Joe Ajaero, NLC president; Garba Abdul, permanent secretary of the service welfare office in the office of the head of the civil service of the federation; and Muhammad Dingyadi, minister of labour and employment.

The meeting followed weeks of threats of industrial action by organised labour over the rising cost of living, workers’ welfare and outstanding agreements.

According to the MoU, the government also approved the payment of peculiar allowance arrears dating back to May 1, 2026, in three equal monthly instalments beginning in November.

Although the parties failed to agree on the effective date for implementing the national minimum wage, they agreed to constitute a committee to negotiate the matter, with meetings to commence immediately.

The MoU also outlined agreements on outstanding allowances, health workers’ remuneration, tax relief and hazard allowances for agricultural officers.

The document said the NLC leadership expressed concern over the federal government’s attitude towards the issues raid.

In response, the government said it “fully respects the right of the congress to advocate for improved working conditions for Nigerian workers and is genuinely trying to address every aspect of it through a structured intervention.”

However, the document, did not specify when the N70,000 allowance would be paid each month or provide details of the administrative arrangements for its disbursement.

BACK STORY

The development follows agitation by workers’ unions over the rising cost of living, driven partly by high petrol prices.

On Thursday, the NLC extended its initial two-week ultimatum to the federal government until Tuesday, October 27, to address workers’ demands, warning of possible nationwide action if negotiations failed.

In a statement, Benson Upah, acting general secretary of the NLC, said the extension followed a meeting between federal government representatives and organised labour leaders that ended without a resolution.

He said the meeting was adjourned at the request of the labour minister to allow the government to assemble relevant ministers and heads of departments and agencies for further discussions.

According to Upah, the union is demanding a reduction in petrol prices to 2024 levels, renegotiation of the national minimum wage and implementation of agreed tax relief measures.

The demands also include implementing the terms of settlement reached with the Joint Health Sector Unions and Assembly of Healthcare Professionals (JOHESU), as well as addressing the demands of the Joint Public Sector Negotiating Council (JPSNC).

Upah said outstanding issues under the JPSNC demands include peculiar allowances, wage awards and hazard allowances.

He said the NLC remained committed to dialogue but would not accept indefinite delays.