By Divine Sam

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 efforts to ease the financial pressure on workers amid rising transportation costs and the high cost of living.

The decision followed a conciliation meeting between the Federal Government and the Nigeria Labour Congress (NLC) in Abuja on Tuesday, October 27, where both parties discussed workers’ welfare, outstanding allowances and disagreements over the implementation of the national minimum wage.

Under the agreement, the government will also begin paying outstanding peculiar allowance arrears from November, with the payments spread across three equal monthly instalments. 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 and begin meetings immediately.

The resolutions were contained in a memorandum of understanding signed by representatives of the Federal Government and the NLC, including 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 Dingyadi.

Speaking after the meeting, NLC Assistant Secretary-General Chris Onyeka described the outcome as productive but admitted that it fell short of labour’s expectations.

“It was productive, but not as we had expected,” he said.

Onyeka noted that negotiations often involve compromises, explaining that neither party could expect to achieve all its demands.

“Sometimes you win some, lose some,” he said.

He also clarified that the proposed Minimum Wage Negotiation Committee would comprise representatives of the government, workers and employers.

On the transport allowance, the memorandum 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 document did not specify the exact payment dates or explain how the allowance would be disbursed to beneficiaries.

The approval comes at a time when many Nigerian workers are struggling to cope with increasing transportation expenses and the rising prices of essential commodities, particularly following the removal of the petrol subsidy in May 2023.

Organised labour has repeatedly called on the government to introduce measures that would ease the economic burden on workers, improve wages and fulfil outstanding welfare agreements. The NLC had also expressed dissatisfaction with the government’s handling of its demands, leading to further engagement through the Ministry of Labour and Employment.

Addressing the disagreement, the memorandum said the NLC leadership “expressed concern over the Federal Government’s attitude towards the above issues.”

It added that 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.”

Despite the progress made on some of labour’s demands, the effective date for implementing the national minimum wage remains unresolved. Both parties agreed to constitute the Minimum Wage Negotiation Committee and commence discussions immediately, but no agreement was reached on when the implementation should take effect.

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 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 N30,000 to N70,000. The new rate was subsequently enacted into law through the National Minimum Wage Act.

The latest agreement did not provide further details on the specific proposals being considered or when the disagreement over the effective date would be resolved.

The government also approved the payment of outstanding peculiar allowance arrears, with disbursement scheduled to begin in November.

The memorandum stated, “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.”

Although the payment is expected to begin in November, the document did not disclose the total amount involved or provide a breakdown of the beneficiaries and individual payments.

For health workers, the government agreed to clear 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 total value of the arrears and the specific payment dates were not disclosed.

The proposed adjustment to the Consolidated Health Salary Structure (CONHESS), which covers eligible health professionals in the public service, is also awaiting further consideration. The National Salaries, Incomes and Wages Commission has undertaken to complete an updated assessment of the financial implications within three weeks to enable the Presidential Committee on Salaries to make a decision.

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.”

No final decision has been announced on the proposed salary adjustment, as the commission is yet to complete its review.

The payment of hazard allowances to agricultural officers was also discussed during the meeting. 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 National Salaries, Incomes and Wages Commission for verification.

The document stated, “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 verification is expected to be completed within two weeks, after which the commission will issue a template to guide implementation.

“The verification is expected to be completed within two weeks after which the template for implementation would be issued by the NSIWC,” the memorandum stated.

The document did not specify the number of eligible agricultural officers or the total amount involved.

On tax relief for workers, the parties agreed to refer the matter to the National Executive Council for further consideration because of the statutory nature of taxation.

The memorandum stated, “Since tax is a statutory matter, the issue of tax relief for workers will be taken to National Executive Council (NEC).”

No details were provided on the specific tax relief measures being considered or when the council would deliberate on the matter.

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.

It stated, “State Governments and Local Governments are urged to key into the intervention process. Unions are equally enjoined to push for its implementation.”

Both parties further agreed to reconvene after one month to review progress on the resolutions reached at the meeting.

The memorandum stated, “Both parties to reconvene after a period of one month to appraise the level of implementation of the resolution.”

The review is expected to assess the payment of the transport allowance, outstanding peculiar allowance arrears and progress on other commitments made during the negotiations.

The meeting followed an earlier conciliation session held on October 22, 2026, which the Federal Ministry of Labour and Employment convened to address disagreements between the government and organised labour.

While the latest agreement offers some financial relief to public servants, several issues remain unresolved, including the effective date for minimum wage implementation, the proposed CONHESS adjustment, the payment of agricultural officers’ hazard allowances and the consideration of tax relief.

The impact of the agreement on workers’ welfare will largely depend on the timely implementation of the approved payments and the outcome of further discussions on the outstanding demands.