The Federal Government has approved a monthly transport allowance of N70,000 for public servants for six months, beginning in November 2026, as part of measures to ease the impact of rising living costs.
The approval followed a conciliation meeting between the Federal Government and the Nigeria Labour Congress (NLC) in Abuja on Tuesday, October 27, 2026, amid renewed calls for improved workers’ welfare and the implementation of outstanding agreements.
According to a report by PUNCH Newspapers, the government also approved the payment of outstanding peculiar allowance arrears in three equal monthly instalments beginning in November.
However, both parties failed to agree on the effective date for implementing the national minimum wage, although they agreed to establish a Minimum Wage Negotiation Committee immediately.
The resolutions were contained in a memorandum of understanding signed by representatives of the Federal Government and the NLC at the end of the meeting.
FG Approves Six Months of Transport Allowance
The memorandum stated that the N70,000 transport intervention would be paid monthly across all levels of the public service for six months, starting in November 2026.
The document, however, did not specify the exact payment dates or the administrative arrangements for disbursing the allowance.
Speaking after the meeting, NLC Assistant Secretary-General, Chris Onyeka, described the discussions as productive but said the outcome fell short of labour’s expectations.
“It was productive, but not as we had expected,” Onyeka said.
He explained that negotiations required compromises and confirmed that the proposed Minimum Wage Negotiation Committee would comprise representatives of the government, workers and employers.
The latest meeting followed an earlier conciliation session held on October 22, 2026, to address disagreements between the government and organised labour.
FG Approves Payment of Outstanding Allowances
The Federal Government also approved the payment of outstanding peculiar allowance arrears, effective from May 1, 2026.
According to the memorandum, the arrears will be paid in three equal monthly instalments beginning in November.
However, the document did not disclose the total amount involved or provide details of the individual payments.
For health workers, the government agreed to clear 19 months of outstanding allowance arrears within three months, beginning in December 2026.
The agreement comes amid longstanding concerns over remuneration and welfare in Nigeria’s health sector, where disputes over salaries and allowances have periodically triggered industrial tensions.
Minimum Wage Implementation Date Remains Unresolved
Despite the agreements on transport support and outstanding allowances, the Federal Government and the NLC remain divided over the effective date for implementing the national minimum wage.
Both parties agreed to constitute a Minimum Wage Negotiation Committee and begin meetings immediately.
The memorandum stated that a disagreement over the implementation date remained unresolved.
Nigeria’s national minimum wage became a major issue in 2024 when the Federal Government and organised labour negotiated an increase from N30,000 to N70,000 monthly. The new rate was subsequently enacted into law through the National Minimum Wage Act.
The latest agreement did not provide further details about the specific proposal under consideration or when the new negotiations would conclude.
CONHESS Adjustment Awaits Further Assessment
The meeting also addressed 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 undertook to complete an updated assessment of the cost implications within three weeks.
The assessment is expected to guide the Presidential Committee on Salaries in deciding on the proposed adjustment.
No final decision has been announced, as the commission is yet to complete its review.
Agricultural Officers’ Hazard Allowances Under Verification
The Federal Ministry of Agriculture and Food Security has submitted the list of beneficiaries and the associated cost implications for hazard allowances for agricultural officers to the National Salaries, Incomes and Wages Commission.
The memorandum stated that the commission was verifying the submission and expected to complete the process within two weeks.
An implementation template will be issued after the verification exercise.
The document did not disclose the number of eligible agricultural officers or the total amount involved.
Workers’ Tax Relief Referred to NEC
The Federal Government and the NLC also agreed to refer the issue of tax relief for workers to the National Executive Council (NEC) for further consideration because of its statutory implications.
However, the memorandum did not specify the proposed tax relief measures or when the council would consider the matter.
Organised labour has continued to push for measures to improve workers’ disposable income as households grapple with rising transportation costs, food prices, housing expenses and other essential bills.
The increase in living costs has remained a major concern since the removal of the petrol subsidy in May 2023.
FG, NLC to Review Implementation in One Month
The memorandum urged state and local governments to participate in the intervention process, noting their responsibilities for the welfare of workers in their respective public services.
It also encouraged unions to push for the implementation of the agreed measures.
The Federal Government and the NLC agreed to reconvene after one month to assess progress on the resolutions.
The review is expected to examine the implementation of the transport allowance, payment of outstanding peculiar allowances and progress on other outstanding issues.
Although the agreement provides a framework for continued engagement between the government and organised labour, several demands remain unresolved, including the minimum wage implementation date, the proposed CONHESS adjustment, agricultural officers’ hazard allowances and workers’ tax relief.
The extent to which the agreement improves workers’ welfare will depend on the implementation of the approved measures and the outcome of further negotiations.
