The Federal Government has approved a monthly transport allowance of N70,000 for public servants for six months, beginning in November 2026, as part of measures to cushion the impact of rising transportation costs and the increasing cost of living.
The approval was one of the resolutions reached at a conciliation meeting between the Federal Government and the Nigeria Labour Congress (NLC) in Abuja on Tuesday, October 27, following renewed pressure from organised labour 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. They instead agreed to immediately constitute a tripartite Minimum Wage Negotiation Committee comprising representatives of the government, workers and employers.
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 memorandum also addressed issues relating to health workers’ remuneration, tax relief and hazard allowances for agricultural officers.
Speaking on the outcome of the meeting, the NLC Assistant Secretary-General, Chris Onyeka, described the discussions as productive but said they fell short of labour’s expectations.
“It was productive, but not as we had expected,” Onyeka said.
He acknowledged that negotiations often required compromises, adding, “Sometimes you win some, lose some.”
Onyeka also confirmed that the transport allowance would be paid for six months, beginning in November.
The meeting followed an earlier conciliation session held on October 22, which the Federal Ministry of Labour and Employment convened to address disagreements between the government and organised labour.
According to the memorandum, the N70,000 transport intervention would apply across all levels for six months, commencing in November 2026. However, the document did not specify the exact payment dates or the administrative arrangements for disbursing the allowance.
The approval comes amid persistent concerns over rising transportation costs and the prices of essential goods following the removal of the petrol subsidy in May 2023, which contributed to increased living expenses nationwide.
The N70,000 monthly transport allowance is a welcome intervention, given the financial pressure that rising transport fares have placed on workers’ take-home pay. At a time when many public servants are struggling to meet their daily expenses, the allowance offers some measure of relief, making it a welcome development out of necessity.
However, the timing of the approval may also attract political interpretations, with some opponents likely to view the intervention as a giveaway ahead of the next general election. While such concerns may feature in public debate, the policy’s impact on workers’ welfare and the effectiveness of its implementation remain important considerations.
The government must establish effective monitoring mechanisms to prevent transport operators from arbitrarily increasing fares in response to the allowance. Without adequate oversight, the additional income workers are expected to receive could be absorbed by higher transportation costs, defeating the purpose of the intervention.
The government must therefore ensure that the allowance translates into genuine financial relief for workers rather than becoming an indirect benefit to transport operators. Timely payment, transparent implementation and effective monitoring will be essential to achieving the intended objective while negotiations on other outstanding workers’ demands continue.