The Federal Government has approved a ₦70,000 monthly transport allowance for workers for six months, starting in November 2026, in a bid to ease the rising cost of living.
The decision was agreed in a memorandum of understanding signed after a conciliation meeting between the government and the Nigeria Labour Congress (NLC) in Abuja on Tuesday, 27 October, Nairametrics reported.
Who Signed the Agreement
The agreement was signed by the Director-General of the Budget Office, Timi Yakubu; NLC President Joe Ajaero; Permanent Secretary of the Service Welfare Office in the Office of the Head of the Civil Service, Dr Garba Abdul; and the Minister of Labour, Dr Muhammad Maigari Dingyadi.
What Workers Will Get
- ₦70,000 transport support every month for six months, beginning in November 2026.
- Peculiar allowance arrears, effective from 1 May 2026, to be paid in three equal monthly instalments from November.
- Payment of 19 months of arrears owed to health workers.
The government described the transport payment as an intervention for workers to help cushion the effects of economic hardship.
Minimum Wage Talks Still Open
The two sides did not agree on an effective date for a new minimum wage. Instead, they agreed to set up a Minimum Wage Negotiation Committee to continue talks. Labour unions have been pushing for a review of the current ₦70,000 minimum wage, which many workers say no longer covers basic living costs.
Both parties also agreed to review how the measures are being implemented after one month.
States and Local Governments Urged to Follow
The agreement urges state and local governments to adopt similar measures for their own workers. This is important because most Nigerian public servants are employed by states and councils, not the federal government. Whether governors follow the federal lead will decide how many workers actually benefit.
What It Means
For federal workers struggling with high transport fares and food prices, the extra ₦70,000 a month will offer welcome, if temporary, relief. However, labour leaders are likely to keep up pressure for a permanent wage increase, warning that short-term allowances do not solve the deeper problem of low pay.
Sources: Nairametrics, Blueprint, Ripples Nigeria, allAfrica. Image: Wikimedia Commons (file photo of a Lagos BRT station).