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

The Federal Government has approved a monthly transport allowance of ₦70,000 for public service workers for six months, beginning in November 2026, as part of measures to ease the economic pressure on employees amid rising living costs.

The decision followed a conciliation meeting between the Federal Government and the leadership of the Nigeria Labour Congress (NLC) held in Abuja on Tuesday, October 27, 2026. The meeting was convened by the Federal Ministry of Labour and Employment to address workers’ welfare concerns and outstanding agreements between the government and organised labour.

The agreement, contained in a memorandum of understanding signed at the end of the meeting, provides for the transport intervention to cover workers across all levels for the six-month period. However, the document did not specify the precise dates for monthly disbursement or the administrative arrangements for payment.

The meeting was attended by the Minister of Labour and Employment, Muhammad Maigari Dingyadi; the Director-General of the Budget Office, Timi Yakubu; the Permanent Secretary of the Service Welfare Office in the Office of the Head of the Civil Service of the Federation, Garba Abdul; and NLC President, Joe Ajaero, among other representatives.

In addition to the transport allowance, the government approved the payment of outstanding peculiar allowance arrears with effect from May 1, 2026. The arrears are scheduled to be paid in three equal monthly instalments beginning in November, although the total amount involved and the individual payment breakdown were not disclosed in the agreement.

The government and labour representatives also reached an agreement on outstanding allowances owed to health workers. Under the resolution, arrears covering 19 months are to be settled within three months, beginning in December 2026.

On the proposed adjustment to the Consolidated Health Salary Structure (CONHESS), the National Salaries, Incomes and Wages Commission is expected to complete an updated assessment of the financial implications within three weeks. The assessment will enable the Presidential Committee on Salaries to consider the proposed adjustment.

The meeting also addressed hazard allowances for agricultural officers. The Federal Ministry of Agriculture and Food Security had submitted the list of beneficiaries and the associated costs to the National Salaries, Incomes and Wages Commission for verification. The verification exercise is expected to be completed within two weeks, after which an implementation framework will be issued.

Despite the agreements on transport support and other outstanding entitlements, the Federal Government and the NLC did not reach a consensus on the effective date for implementing the national minimum wage. Both parties, however, agreed to constitute a Minimum Wage Negotiation Committee and commence meetings immediately. The question of tax relief for workers was also referred to the National Executive Council for further consideration.

The parties urged state and local governments to participate in the intervention process and encouraged labour unions to pursue implementation within their respective jurisdictions. They also agreed to reconvene after one month to assess progress on the resolutions. The implementation of the six-month transport allowance, payment of outstanding arrears and progress on the unresolved wage and tax issues will therefore form part of the follow-up to the meeting.