Nigerian Government Approves N70,000 Transport Allowance

The Nigerian 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 impact of rising living costs.

The approval followed a conciliation meeting between the government and the Nigeria Labour Congress (NLC) in Abuja on Tuesday. The meeting addressed workers’ welfare, the rising cost of living and outstanding agreements between both parties.

Under the agreement, the government will also pay outstanding peculiar allowance arrears from May 1, 2026, in three equal monthly instalments starting in November.

However, both parties failed to agree on when the national minimum wage should take effect. They agreed to set up the Minimum Wage Negotiation Committee 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.

The document outlined agreements on transport support, outstanding allowances, minimum wage negotiations, health workers’ pay, tax relief and hazard allowances for agricultural officers. It followed an earlier conciliation meeting held on October 22, 2026, by the National Ministry of Labour and Employment to resolve disagreements between the government and organised labour.

On the transport allowance, 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 payment date within each month or explain the arrangements for disbursing the money, according to Punch.

The intervention comes following rising transport costs and prices of essential goods following the removal of the petrol subsidy in May 2023. The policy contributed to increased living costs across the country.

Organised labour has repeatedly called for measures to reduce the financial pressure on workers. Its demands have included lower petrol prices, improved wages and the implementation of outstanding welfare agreements.

The memorandum also recorded the NLC leadership’s concerns about the government’s response to its demands. It stated that the NLC leadership “expressed concern over the Federal Government’s attitude towards the above issues.”

In response, the government said it respected workers’ right to demand better conditions and was working to address their concerns.

The memorandum stated that the Nigerian Government “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.”

On the national minimum wage, both parties agreed to establish the negotiation committee and begin discussions immediately. However, they did not agree on the effective date for implementation.

The memorandum stated, “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 unresolved date leaves a key issue open despite the commitment to resume negotiations without delay. The national minimum wage became a major issue in 2024, when the government and organised labour negotiated an increase in the statutory monthly minimum wage from N30,000 to N70,000. The National Minimum Wage Act subsequently enacted the new rate into law.

The latest memorandum does not specify the new proposal under discussion or state when the parties expect to conclude the negotiations.

While the government has approved transport support and the payment of outstanding allowances, other demands remain subject to further negotiations, administrative checks or decisions by relevant government bodies.