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The Federal Government has approved a monthly transport allowance of N70,000 for public servants for six months, beginning in November 2026, to cushion the impact of rising living costs. The approval was one of the resolutions reached at a conciliation meeting between the government and the Nigeria Labour Congress (NLC) in Abuja on Tuesday, October 27, 2026. The meeting addressed outstanding labour demands, including workers’ allowances, minimum wage negotiations and remuneration for health workers.
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, 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.
FG Approves N70,000 Monthly Transport Allowance
The agreement provides for a six-month transport intervention for workers, alongside payments for outstanding allowances and further discussions on wage-related demands.
According to the memorandum, the allowance is intended to provide immediate relief to workers facing higher transportation costs and other economic pressures.
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The N70,000 monthly transport allowance will begin in November 2026 and run for six months.
The government approved payment of outstanding peculiar allowance arrears, effective from May 1, 2026, in three equal monthly instalments beginning in November.
The parties agreed to urge state and local governments to adopt similar measures and review implementation after one month.
The memorandum described the transport support as an intervention to cushion the economic challenges facing workers. However, the government and the NLC did not agree on the effective date for implementing the national minimum wage.
They agreed to immediately establish a Minimum Wage Negotiation Committee to continue discussions on the issue.
FG Agrees to Pay Outstanding Worker Allowances
The meeting also addressed outstanding remuneration issues affecting health workers and agricultural officers, as well as proposed tax relief for workers.
On the proposed adjustment to the Consolidated Health Salary Structure (CONHESS), which covers eligible health professionals in the public service, the National Salaries, Incomes and Wages Commission (NSIWC) is expected to complete an updated assessment of the financial implications within three weeks.
The memorandum stated: “NSIWC promised to complete the update of the cost implication within three (3) weeks to enable the Presidential Committee on Salaries to take decision on the CONHESS adjustment.”
The assessment is expected to guide the Presidential Committee on Salaries in considering the proposed adjustment. No final decision on the adjustment was announced in the memorandum.
The government also provided an update on hazard allowances for agricultural officers.
According to the agreement, the Federal Ministry of Agriculture and Food Security had submitted the list of beneficiaries and the associated costs to the NSIWC for verification.
The memorandum stated that verification was expected to be completed within two weeks, after which the commission would issue an implementation template.
On tax relief, the parties agreed to refer the issue to the National Economic Council for further consideration because of its statutory implications.
The agreement comes amid concerns about rising transportation costs and the prices of goods and services following the removal of the petrol subsidy and the floating of the naira.
What you should know
Earlier in October 2026, the NLC gave the Federal Government two weeks to reduce petrol prices, begin minimum wage renegotiations and address other outstanding workers’ demands.
The union called for petrol prices to be reduced to the level prevailing when the current national minimum wage was signed into law in 2024. It also demanded that minimum wage negotiations begin before the end of October.
The NLC argued that higher petrol prices had increased transportation, food and other essential costs, worsening financial pressure on workers and households.
It also said the current minimum wage had lost purchasing power because of naira depreciation and rising living costs, leaving workers struggling to afford basic necessities.
Beyond petrol prices and minimum wage negotiations, the union demanded the implementation of outstanding agreements with public-sector and health-sector workers.
These included the February 5, 2026, settlement with the Joint Health Sector Unions and Assembly of Healthcare Professionals (JOHESU), as well as demands raised by the Joint Public Sector Negotiating Council (JPSNC).
The union had warned that failure to address its demands within two weeks could trigger further action. The latest agreement establishes timelines for several welfare measures, although minimum wage negotiations and some outstanding remuneration issues remain unresolved.
