The Federal Government has approved a N70,000 monthly transport allowance for public service workers across all levels for six months, beginning in November 2026, as part of measures to cushion the impact of the rising cost of living.
The approval was reached on Tuesday at a conciliation meeting between the Federal Government and the leadership of the Nigeria Labour Congress in Abuja, following renewed pressure from organised labour over workers’ welfare, rising transportation costs and outstanding agreements.
Under the agreement, workers will receive the N70,000 transport intervention every month for six months. 
The government also approved the payment of peculiar allowance arrears dating from May 1, 2026, in three equal monthly instalments beginning in November.
However, the government and the NLC remained divided over the effective date for implementing the national minimum wage, although both sides agreed to immediately constitute and commence meetings of the Minimum Wage Negotiation Committee.
The resolutions were contained in a memorandum of understanding signed at the end of the meeting 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, Dr Garba Abdul S.U.; and the Minister of Labour and Employment, Dr Muhammad Maigari Dingyadi.
The memorandum, 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,” also outlined agreements on health workers’ remuneration, tax relief and hazard allowances for agricultural officers.
On the transport intervention, the agreement 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.”
The document, however, did not specify the exact payment date each month or the administrative arrangements for disbursing the allowance.
The intervention comes amid persistent concerns over rising transportation costs and the prices of essential commodities following the removal of the petrol subsidy in May 2023.
Organised labour has repeatedly demanded measures to ease the economic burden on workers, including lower petrol prices, improved wages and the implementation of outstanding welfare agreements.
The NLC also expressed concern over what it described as the Federal Government’s handling of its demands.
According to the memorandum, the labour leadership “expressed concern over the Federal Government’s attitude towards the above issues.”
The government, in response, said it “fully respect[s] the right of the Congress to advocate for improved working conditions for Nigerian workers” and was “genuinely trying to address every aspect of it through a structured intervention.”
Minimum Wage Talks
On the national minimum wage, both parties agreed that the Minimum Wage Negotiation Committee would be constituted and begin sitting immediately.
However, they failed to resolve the disagreement over 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 issue leaves the effective date of the next minimum wage implementation as a major sticking point between the government and organised labour.
The minimum wage became a major issue in 2024 after the Federal Government and labour negotiated an increase in the statutory minimum wage from N30,000 to N70,000. The new rate was subsequently enacted into law through the National Minimum Wage Act.
The latest agreement does not disclose any new minimum wage proposal or indicate when negotiations over the implementation date will be concluded.
While the latest agreement provides immediate financial relief through the transport allowance and payment of outstanding allowances, other workers’ demands remain subject to further negotiations and administrative decisions by the relevant government agencies.
