The Federal Government has approved a monthly transport allowance of ₦70,000 for public servants for six months, beginning in November 2026, as part of measures to cushion the impact of rising living costs.
The approval was one of the key resolutions reached at a conciliation meeting between the Federal Government and the Nigeria Labour Congress (NLC) in Abuja on Tuesday, October 27, following renewed pressure from organised labour over workers’ welfare, outstanding agreements and the rising cost of living.
The government also approved the payment of outstanding peculiar allowance arrears effective from May 1, 2026, with disbursement scheduled to begin in November in three equal monthly instalments.
However, the parties failed to agree on the effective date for implementing the national minimum wage, although they agreed to immediately constitute a Minimum Wage Negotiation Committee comprising representatives of the government, workers and employers.
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, 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, 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 on transport support, outstanding allowances, minimum wage negotiations, health workers’ remuneration, tax relief and hazard allowances for agricultural officers.
Speaking on the outcome of the meeting, the NLC Assistant Secretary-General, Chris Onyeka, described the discussions as productive but said they did not meet labour’s expectations.
“It was productive, but not as we had expected,” he said.
Onyeka noted that negotiations often required compromises, adding that neither party could expect to achieve all its demands.
“Sometimes you win some, lose some,” he said.
He confirmed that the ₦70,000 transport allowance would be paid monthly for six months from November, while clarifying that the proposed Minimum Wage Negotiation Committee would be tripartite, involving the government, labour and employers.
The latest meeting followed an earlier conciliation session convened by the Federal Ministry of Labour and Employment on October 22 to address disagreements between the government and organised labour.
₦70,000 transport allowance to run for six months
The memorandum specified that the transport intervention would cover public servants across all levels for six months, beginning in November.
It stated, “That transport intervention of Seventy Thousand Naira (₦70,000) commencing from November 2026 would be paid across all levels for a period of six months.”
The document, however, did not specify the exact payment dates or the administrative arrangements for disbursing the allowance.
The intervention comes amid persistent concerns over rising transportation costs and the prices of essential goods following the removal of the petrol subsidy in May 2023, which contributed to increased living expenses nationwide.
Organised labour has repeatedly demanded measures to ease the economic pressure on workers, including improved wages, lower petrol prices and the implementation of outstanding welfare agreements.
The memorandum acknowledged the NLC’s concerns about the government’s handling of the issues, noting that the union leadership “expressed concern over the Federal Government’s attitude towards the above issues.”
In response, the Federal Government “stated that it fully respect 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.”
The exchange underscores continuing differences between the two parties over the pace of implementing workers’ demands, despite their commitment to further negotiations.
Minimum wage implementation date remains unresolved
On the national minimum wage, the parties agreed to constitute the Minimum Wage Negotiation Committee and commence meetings immediately. However, they failed to reach an agreement on the effective date of implementation.
The memorandum stated, “It was agreed that the Minimum Wage Negotiation Committee would be constituted and commence meeting immediately. It should however be noted that there is a disagreement on the effective date of implementation.”
The disagreement leaves a key issue unresolved, although the commitment to begin negotiations immediately provides a framework for further discussions.
The national minimum wage became a major issue in 2024 when the Federal Government and organised labour negotiated an increase in the statutory monthly minimum wage from ₦30,000 to ₦70,000. The new rate was subsequently enacted into law through the National Minimum Wage Act.
The latest memorandum does not provide details of the specific proposal under consideration or indicate when negotiations on the implementation date are expected to conclude.
Peculiar allowance arrears to be paid in three instalments
The Federal Government also approved the payment of outstanding peculiar allowance arrears, with payments scheduled to commence in November.
According to the memorandum, the allowance was approved with effect from May 1, 2026, and the outstanding amounts would be paid in three equal monthly instalments.
“The peculiar allowance have been approved by the Federal Government with effective from 1st May 2026. The payment of the arrears would commence in November, 2026 in three equal monthly instalments,” the document stated.
However, the memorandum did not disclose the total amount involved, the number of beneficiaries or the individual payment breakdown.
FG to clear 19 months of health workers’ allowance arrears
For health workers, the government agreed to settle 19 months of outstanding allowance arrears within three months, beginning in December 2026.
The memorandum stated, “Nineteen (19) Months arrears of allowances for Health Workers to be redeemed within three (3) months with effect from December, 2026.”
The document did not specify the total value of the arrears or the precise dates on which the payments would be made.
The agreement comes amid longstanding concerns over remuneration and working conditions in Nigeria’s health sector, where disputes over salaries, allowances and the implementation of agreements have periodically led to industrial tensions.
On the proposed adjustment to the Consolidated Health Salary Structure (CONHESS), which covers eligible health professionals in the public service, the National Salaries, Incomes and Wages Commission (NSIWC) is expected to complete an updated assessment of the financial implications within three weeks.
The memorandum stated, “NSIWC promised to complete the update of the cost implication within three (3) weeks to enable the Presidential Committee on Salaries to take decision on the CONHESS adjustment.”
The assessment will inform the Presidential Committee on Salaries’ consideration of the proposed adjustment. No final decision has been announced, pending completion of the review.
Agricultural officers’ hazard allowances await verification
The payment of hazard allowances to agricultural officers also featured in the discussions.
According to the memorandum, the Federal Ministry of Agriculture and Food Security had submitted the list of beneficiaries and the associated cost implications to the NSIWC for verification.
“The Federal Ministry of Agriculture and Food Security had just submitted the list of beneficiaries and the cost implication to NSIWC which is being verified,” the document stated.
It added that the verification was expected to be completed within two weeks, after which the commission would issue an implementation template.
“The verification is expected to be completed within two weeks after which the template for implementation would be issued by the NSIWC,” the memorandum added.
The payment process therefore remains subject to the completion of the verification exercise and the issuance of the relevant implementation guidelines. The document did not specify the number of eligible officers or the total amount involved.
Tax relief proposal referred to NEC
On tax relief for workers, the parties agreed to refer the matter to the National Economic Council (NEC) for further consideration, citing its statutory implications.
The memorandum stated, “Since tax is a statutory matter, the issue of tax relief for workers will be taken to National Executive Council (NEC).”
It did not specify the relief measures under consideration or when the matter would be deliberated upon.
Tax relief has featured in broader discussions about workers’ purchasing power as households grapple with rising costs of transportation, food, housing and other essentials. Organised labour has advocated measures to improve disposable income and reduce the financial pressure on workers.
FG, NLC to review implementation after one month
The latest resolutions leave several issues outstanding, including the effective date for implementing the national minimum wage, a decision on the CONHESS adjustment, verification of agricultural officers’ hazard allowances and consideration of tax relief.
The memorandum also urged state and local governments to participate in the intervention process, noting their responsibilities for the welfare of workers in their respective public services.
“State Governments and Local Governments are urged to key into the intervention process. Unions are equally enjoined to push for its implementation,” the document stated.
The parties further agreed to reconvene after one month to assess progress in implementing the resolutions.
“Both parties to reconvene after a period of one month to appraise the level of implementation of the resolution,” the memorandum stated.
The review is expected to assess progress on the transport allowance, peculiar allowance arrears and other outstanding welfare issues.
The meeting brought together representatives of the Federal Government and the NLC leadership in an effort to resolve disagreements and prevent further escalation of industrial tensions.
While the agreement provides a framework for continued engagement and outlines several financial interventions, its overall impact on workers’ welfare will depend on the timely implementation of the approved measures and progress on the issues that remain unresolved.
