FG Approves N70,000 Monthly Transport Allowance for Workers

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, to ease the burden of rising living costs.

The approval was among resolutions reached at a conciliation meeting between the government and the Nigeria Labour Congress (NLC) in Abuja on Tuesday, October 27, following renewed labour demands over workers’ welfare and outstanding agreements.

The government also approved the payment of outstanding peculiar allowance arrears, effective from May 1, 2026, in three equal monthly instalments beginning in November.

However, both parties failed to agree on the effective date for implementing the national minimum wage, although they agreed to constitute a Minimum Wage Negotiation Committee and commence meetings immediately.

The resolutions were contained in a memorandum of understanding signed by the Director-General of Budget, Timi Yakubu; NLC President, Joe Ajaero; Permanent Secretary, Service Welfare Office, Office of the Head of the Civil Service of the Federation, Garba Abdul; and Minister of Labour and Employment, Muhammad Dingyadi.

The document outlined agreements on transport support, outstanding allowances, minimum wage negotiations, health workers’ remuneration, tax relief and hazard allowances for agricultural officers.

It stated that the N70,000 transport intervention would be paid monthly across all levels for six months from November.

However, the agreement did not specify the payment date within each month or explain the administrative arrangements for disbursement.

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

The intervention comes amid persistent concerns over transportation costs and the rising prices of essential goods following the removal of the petrol subsidy in May 2023.

Organised labour has continued to demand measures to ease the economic pressure on workers, including improved wages, lower petrol prices and the implementation of outstanding welfare agreements.

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

It stated that the Congress expressed concern over the Federal Government’s attitude towards the issues raised during the negotiations.

In response, the government reaffirmed its recognition of the NLC’s right to advocate improved working conditions, saying it was making efforts to address the demands through structured interventions.

On the minimum wage, the parties agreed that the negotiation committee would be constituted and begin work immediately.

Nevertheless, the effective date for implementation remained unresolved, leaving a key issue pending despite the commitment to commence negotiations without delay.

The national minimum wage became a major issue in 2024 when the Federal Government and organised labour negotiated an increase from N30,000 to N70,000 monthly. The revised amount was subsequently enacted into law through the National Minimum Wage Act.