FG Approves N70,000 Monthly Transport Allowance for Workers for Six Months
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FG Approves N70,000 Monthly Transport Allowance for Workers for Six Months

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FG Approves N70,000 Monthly Transport Allowance for Workers for Six Months

Admin By Adewale Adewale
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The Federal Government has approved a monthly transport allowance of N70,000 for public service workers across all levels for six months, beginning in November 2026, as part of measures to cushion the impact of rising living costs.

The approval was among the resolutions reached on Tuesday at a conciliation meeting between the Federal Government and the leadership of the Nigeria Labour Congress (NLC) in Abuja.

The meeting, convened by the Federal Ministry of Labour and Employment, followed renewed pressure from organised labour over the rising cost of living, workers’ welfare and the implementation of outstanding agreements.

According to a memorandum of understanding signed at the end of the meeting, the transport intervention would run for six months, starting from November.

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.”

The agreement, however, did not specify the dates for monthly payments or outline the administrative arrangements for disbursing the funds.

The Federal Government also approved the payment of outstanding peculiar allowance arrears with effect from May 1, 2026, in three equal monthly instalments beginning in November.

On the national minimum wage, the government and labour leaders agreed to constitute a Minimum Wage Negotiation Committee, which is expected to commence meetings immediately.

However, the parties failed to reach an agreement on the effective date for implementing the minimum wage.

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 unresolved issue leaves the implementation timeline uncertain despite the parties’ commitment to begin negotiations without delay.

The memorandum of understanding, 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, was 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 meeting also addressed other outstanding issues, including health workers’ remuneration, tax relief and hazard allowances for agricultural officers.

The NLC leadership expressed concern over the Federal Government’s handling of the issues discussed, according to the memorandum.

In response, the government reaffirmed its recognition of organised labour’s right to advocate improved working conditions.

The document quoted the Federal Government as saying 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 latest meeting followed an earlier conciliation session held on October 22, 2026, as both parties continued efforts to resolve disagreements over workers’ welfare and economic pressures.

The intervention comes amid persistent concerns about transportation costs and the rising 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 burden on workers, including improved wages, reductions in petrol prices and the fulfilment of outstanding welfare agreements.

The national minimum wage became a major point of contention 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 revised rate was subsequently signed into law.

The latest agreement provides for further discussions on minimum wage implementation while introducing temporary transport support and a payment schedule for outstanding peculiar allowance arre, the effective date of minimum wage implementation remains unresolved, leaving further negotiations necessary to settle the outstanding disagreement.

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