FG Approves N70,000 Monthly Transport Allowance for Workers
By Akin Alade
Nigerian public servants are set to receive a cumulative N420,000 in transport support over six months following a fresh agreement between the Federal Government and the Nigeria Labour Congress (NLC), aimed at reducing the financial pressure on workers amid rising transportation costs and economic hardship.
Under the agreement reached in Abuja on Tuesday, October 27, 2026, the Federal Government approved a monthly transport intervention of N70,000 across all levels of the public service, beginning in November 2026 and continuing for six months.
The development represents a significant breakthrough in negotiations between organised labour and the Federal Government over workers’ welfare, the rising cost of living, outstanding allowances and other economic challenges affecting millions of Nigerian households.
The transport intervention, which is separate from the existing N70,000 national minimum wage, is expected to provide temporary financial relief to eligible workers struggling with increased commuting expenses and the rising prices of essential goods and services.
Beyond the transport allowance, the Federal Government also agreed to settle outstanding peculiar allowance arrears, effective from May 1, 2026. The payments will commence in November and be spread across three equal monthly instalments.
In another major concession, the government committed to clearing 19 months of outstanding allowances owed to health workers within three months, beginning in December 2026. The decision is expected to address longstanding welfare grievances in the country’s public healthcare sector.
However, despite progress on several demands, the Federal Government and organised labour failed to reach a consensus on the effective implementation date of the national minimum wage arrangement under discussion.
Both parties nevertheless agreed to immediately constitute a Minimum Wage Negotiation Committee to continue discussions and address unresolved concerns surrounding workers’ remuneration.
The meeting also considered demands for tax relief, improved hazard allowances for agricultural workers and adjustments to the Consolidated Health Salary Structure (CONHESS).
On agricultural workers’ hazard allowances, the Federal Ministry of Agriculture and Food Security has submitted the list of beneficiaries and financial implications to the National Salaries, Incomes and Wages Commission for verification. The exercise is expected to be completed within two weeks.
Similarly, the commission is expected to conclude its assessment of the proposed CONHESS adjustment within three weeks, enabling the Presidential Committee on Salaries to consider the financial implications and determine the next course of action.
The issue of tax relief for Nigerian workers will be referred to the National Economic Council for further consideration because of the statutory implications involved.
NLC Assistant Secretary-General Chris Onyeka acknowledged that the discussions produced some positive results, although the agreements did not fully meet the expectations of organised labour.
The latest intervention comes against the backdrop of persistent economic pressures on Nigerian workers, particularly following the removal of petrol subsidies in 2023, which contributed to higher transportation costs and increased household expenditure.
Although the six-month transport package offers temporary relief, questions remain over its long-term sustainability, the precise disbursement arrangements and whether state and local governments will introduce similar measures for their employees.
The Federal Government and NLC have consequently encouraged state and local government authorities to participate in the intervention process, while urging labour unions to pursue implementation at their respective levels.
Both parties are scheduled to reconvene after one month to review compliance with the agreement and assess progress on outstanding welfare commitments.
For Nigerian workers, the immediate priority will be the timely commencement of the N70,000 monthly transport payments in November and the fulfilment of other financial commitments reached during the negotiations.
The agreement signals a renewed attempt to ease labour tensions, but its ultimate success will depend on whether the promised financial interventions translate into actual payments and measurable improvements in workers’ living conditions.
