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, as part of efforts to cushion the effects of rising living costs.
The approval was among the resolutions reached at a conciliation meeting between the Federal Government and the leadership of the Nigeria Labour Congress (NLC) in Abuja on Tuesday, October 27, 2026.
The meeting, convened amid renewed pressure from organised labour over workers’ welfare, the rising cost of living and the implementation of outstanding agreements, also approved the payment of peculiar allowance arrears dating back to May 1, 2026.
According to a memorandum of understanding signed at the end of the meeting, the arrears will be paid in three equal monthly instalments beginning in November 2026.
However, the government and labour leaders failed to reach an agreement on the effective date for implementing the national minimum wage, although both parties agreed that the Minimum Wage Negotiation Committee would be constituted and begin meetings immediately.
The memorandum was signed by the Director-General of Budget, Timi Yakubu; NLC President, Joe Ajaero; the Permanent Secretary, 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.
On the transport intervention, the document stated that a payment of N70,000 would commence in November 2026 and continue for six months across all levels of the public service.
However, the agreement did not specify the exact dates for monthly payments or outline the administrative arrangements for disbursing the funds.
The intervention comes amid persistent increases in transportation fares and the prices of essential commodities following the removal of the petrol subsidy in May 2023, which significantly increased the cost of living for many Nigerians.
Organised labour has repeatedly called for measures to ease the economic burden on workers, including improved wages, reductions in fuel prices and the implementation of outstanding welfare agreements.
The memorandum also acknowledged concerns raised by the NLC leadership over the government’s handling of the issues presented during the negotiations.
In response, the Federal Government reaffirmed its recognition of organised labour’s right to advocate for better working conditions and said it was making efforts to address the demands through structured interventions.
On the minimum wage, both parties agreed to establish the negotiation committee and commence discussions without delay. However, the disagreement over the effective date of implementation remains unresolved.
The document stated that the committee would be constituted immediately, while noting that the parties had yet to agree on when implementation should take effect.
The national minimum wage became a major issue in 2024 when the Federal Government and organised labour negotiated an increase in the statutory monthly minimum wage from N30,000 to N70,000. The revised rate was subsequently enacted into law.
The latest agreement, however, does not provide details of any specific new minimum wage proposal or indicate when the outstanding disagreement will be resolved.
The meeting followed an earlier conciliation session held on October 22, 2026, by the Federal Ministry of Labour and Employment to address disagreements between the government and organised labour.
Other issues covered in the memorandum included health workers’ remuneration, tax relief and hazard allowances for agricultural officers.
The resolutions represent progress on some of labour’s demands, particularly the transport intervention and payment of outstanding allowances, while negotiations on the minimum wage implementation date and other welfare concerns remain ongoing.