The Federal Government has approved a N70,000 monthly transport allowance for federal public servants for six months, beginning in November 2026, as part of measures to cushion the impact of rising living costs.
The approval followed a conciliation meeting between the government and the Nigeria Labour Congress (NLC) in Abuja on Tuesday, October 27, amid growing pressure from organised labour over workers’ welfare and outstanding agreements.
Under the agreement, the government will also begin paying outstanding peculiar allowance arrears in 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, leaving a major point of disagreement unresolved.
The decisions were contained in a memorandum of understanding signed by government officials and NLC President, Joe Ajaero, at the end of the meeting.
The NLC Assistant Secretary-General, Chris Onyeka, described the discussions as productive but said the outcome fell short of the union’s expectations.
He explained that negotiations required compromises and confirmed that the transport allowance would run for six months from November.
The parties also agreed to immediately constitute a tripartite Minimum Wage Negotiation Committee comprising representatives of the government, workers and employers.
On outstanding peculiar allowances, the government approved payment of arrears effective from May 1, 2026, with disbursement scheduled in three equal monthly instalments beginning in November.
Health workers are also expected to receive 19 months of outstanding allowance arrears over three months, starting in December 2026.
However, the agreement did not disclose the total amount involved or the specific payment dates.
On the proposed adjustment to the Consolidated Health Salary Structure (CONHESS), the National Salaries, Incomes and Wages Commission is expected to complete its assessment of the financial implications within three weeks.
The findings will guide the Presidential Committee on Salaries in deciding the proposed adjustment.
The payment of hazard allowances to agricultural officers is also being processed, with the Ministry of Agriculture and Food Security having submitted the list of beneficiaries and the estimated cost to the commission for verification.
The verification exercise is expected to be completed within two weeks, after which an implementation template will be issued.
On tax relief for workers, the parties agreed to refer the matter to the National Economic Council for consideration because of its statutory implications. No specific relief measures or implementation date were announced.
The latest agreement comes against the backdrop of rising transport fares, food prices and other household expenses following the removal of the petrol subsidy in May 2023.
Organised labour has repeatedly demanded measures to ease the pressure on workers, including improved wages, lower living costs and the fulfilment of outstanding welfare agreements.
Despite the latest concessions, the disagreement over the effective date of minimum wage implementation and the pending decisions on health workers’ pay, agricultural officers’ hazard allowances and tax relief remain unresolved.
The memorandum urged state and local governments to adopt similar interventions for their workers, while encouraging unions to press for implementation.
Both parties also agreed to reconvene after one month to assess progress on the resolutions, including the transport allowance and outstanding payments.
The meeting followed an earlier conciliation session on October 22, convened by the Ministry of Labour and Employment to address the disagreements between the government and organised labour.
