BREAKING: FG approves N70,000 monthly transport allowance for workers for six months

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

The approval was among the resolutions reached at a conciliation meeting between the Federal Government and the leadership of the Nigeria Labour Congress (NLC) in Abuja on Tuesday, October 27, 2026.

The meeting was convened amid renewed pressure from organised labour over workers’ welfare, the rising cost of living and the implementation of outstanding agreements.

According to a memorandum of understanding signed at the end of the meeting, the government also approved the payment of outstanding peculiar allowance arrears, effective from May 1, 2026. The arrears are to be paid in three equal monthly instalments beginning in November.

However, the Federal Government and the NLC failed to reach an agreement on the effective date for implementing the national minimum wage, although both parties agreed that the Minimum Wage Negotiation Committee would be constituted and begin meetings immediately.

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 of the Service Welfare Office in the 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.

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’, the document outlined agreements on transport support, peculiar allowance arrears, minimum wage negotiations, health workers’ remuneration, tax relief and hazard allowances for agricultural officers.

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

On the transport intervention, 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 the administrative arrangements for disbursing the intervention.

The agreement comes amid persistent concerns over transportation costs and the prices of essential goods following the removal of the petrol subsidy in May 2023, which contributed to increased living costs across the country.

Organised labour has repeatedly called for measures to ease the financial pressure on workers, including improved remuneration, reductions in petrol prices and the implementation of outstanding welfare agreements.

FG, NLC Disagree Over Minimum Wage Implementation Date

Despite the agreements on transport support and allowance arrears, the effective date for implementing the national minimum wage remains unresolved.

The memorandum stated that both parties had agreed to constitute the Minimum Wage Negotiation Committee and commence meetings immediately.

“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 document stated.

The disagreement leaves a key issue unresolved, although both parties have committed to beginning negotiations without delay.

The memorandum also recorded the NLC leadership’s dissatisfaction with the government’s handling of its demands.

It stated that the Congress leadership “expressed concern over the Federal Government’s attitude towards the above issues.”

In response, the 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.”

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 new rate was subsequently enacted into law.

The latest agreement provides for further discussions on the implementation date but does not specify the particular proposal under consideration or when negotiations are expected to conclude.

Other issues listed in the memorandum, including health workers’ remuneration, tax relief and hazard allowances for agricultural officers, also form part of the broader discussions between the government and organised labour.

While the approved transport intervention and allowance arrears represent agreed measures, the unresolved minimum wage implementation date and other outstanding matters remain subject to further negotiations and administrative action.

Follow Very Nigerian WhatsApp Channel
For Verified Breaking News, Exclusive Reports, Trending Stories, And Real-time Updates.
CLICk HERE TO JOIN!