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 financial pressure on workers amid rising living costs.
The approval was reached during a conciliation meeting between the government and the Nigeria Labour Congress (NLC) in Abuja on Tuesday, October 27, following renewed demands by organised labour for improved workers’ welfare and the implementation of outstanding agreements.
Under the agreement, the government also approved the payment of outstanding peculiar allowance arrears, effective from May 1, 2026, in three equal monthly instalments beginning in November.
However, the parties failed to agree on the effective date for implementing the national minimum wage, although they resolved to immediately establish a tripartite 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.
Speaking after the meeting, NLC Assistant Secretary-General, Chris Onyeka, described the discussions as productive but said the outcome did not fully meet labour’s expectations.
“It was productive, but not as we had expected,” Onyeka said, adding that negotiations often required compromises.
He confirmed that the transport allowance would run for six months from November, while reiterating that the proposed minimum wage negotiation committee would include the government, labour and employers.
The 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.
On health workers’ welfare, the government agreed to clear 19 months of outstanding allowance arrears within three months, beginning in December 2026.
The memorandum also disclosed that the National Salaries, Incomes and Wages Commission had undertaken to complete an updated assessment of the cost implications of an adjustment to the Consolidated Health Salary Structure (CONHESS) within three weeks.
The assessment is expected to enable the Presidential Committee on Salaries to consider the proposed adjustment, although no final decision has been announced.
Similarly, the payment of hazard allowances to agricultural officers remains subject to verification. The Federal Ministry of Agriculture and Food Security has submitted the list of beneficiaries and the associated cost implications to the National Salaries, Incomes and Wages Commission for review.
The commission is expected to complete the verification within two weeks before issuing an implementation template.
On tax relief for workers, the parties agreed to refer the matter to the National Executive Council (NEC) for further consideration because of its statutory implications. The memorandum did not specify the relief measures being considered or when a decision would be reached.
The agreement also urged state and local governments to participate in the intervention process, while encouraging unions to press for the implementation of the resolutions within their respective jurisdictions.
The government and the NLC further agreed to reconvene after one month to assess progress in implementing the decisions.
The latest agreement provides some immediate financial relief for public servants, but key issues remain unresolved, particularly the effective date for implementing the national minimum wage and the proposed adjustment to CONHESS.
The extent of the benefits to workers will depend on the timely implementation of the approved payments and further progress on the outstanding demands.
