FG Approves N70,000 Monthly Transport Support for Workers for Six Months
The Federal Government has approved a monthly transport allowance of N70,000 for public service workers for six months, beginning in November 2026, to ease the burden of rising living costs. The decision was reached during 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 and outstanding agreements. The government also approved the payment of outstanding peculiar allowance arrears, effective from May 1, 2026. The arrears will be paid in three equal monthly instalments beginning in November. However, both parties failed to agree on when the national minimum wage arrangements under discussion should take effect. They agreed that the Minimum Wage Negotiation Committee would be constituted and begin meetings immediately. 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, Dr Garba Abdul S.U.; and the Minister of Labour and Employment, Dr Muhammad Maigari Dingiyadi. On the transport allowance, the document stated: “That transport intervention of Seventy Thousand Naira (N70,000) commencing from November 2026 would be paid across all levels for a period of six months.” However, the agreement did not specify the exact payment dates or explain the administrative process for disbursing the funds. The meeting followed an earlier conciliation session held on October 22, convened by the Federal Ministry of Labour and Employment to address disagreements between the government and organised labour. The memorandum also addressed outstanding issues involving health workers’ remuneration, tax relief and hazard allowances for agricultural officers. It acknowledged the NLC leadership’s concerns about the government’s handling of workers’ demands. The government, in response, said it respected the union’s right to advocate for improved working conditions and was working to address the issues through structured interventions. On the national minimum wage, the parties agreed to begin negotiations immediately but remained divided over the effective date of implementation. The memorandum stated that the Minimum Wage Negotiation Committee would be constituted and commence meetings without delay, while noting that “there is a disagreement on the effective date of implementation.” The latest agreement comes amid continued concerns about rising transportation costs and the prices of essential goods following the removal of the petrol subsidy in May 2023. Organised labour has repeatedly called for measures to ease the financial pressure on workers, including improved wages and the implementation of outstanding welfare agreements. Although the latest agreement provides for transport support and payment of allowance arrears, the timing of the minimum wage implementation remains unresolved.