The Federal Government’s reported approval of a N70,000 monthly transport allowance for workers is expected to provide relief amid rising commuting costs, but questions remain over implementation, eligibility and the impact on workers’ disposable income.
The approval was reached during a conciliation meeting between government representatives and the Nigeria Labour Congress (NLC) in Abuja on Tuesday, October 27, 2026, amid growing concerns over rising transportation costs, inflation and workers’ purchasing power.
Under the agreement, the transport intervention will cover public service workers across all levels for six months, beginning in November 2026. However, the memorandum of understanding did not specify the exact monthly payment dates or detailed arrangements for disbursement.
The meeting also produced an agreement on outstanding peculiar allowance arrears, which will be paid in three equal monthly instalments beginning in November.
The arrears will take effect from May 1, 2026, although the total amount payable to eligible workers was not disclosed.
Another major resolution concerns health workers, who are expected to receive 19 months of outstanding allowance arrears within three months, starting from December 2026.
The agreement also provides for a review of the proposed adjustment to the Consolidated Health Salary Structure, with the National Salaries, Incomes and Wages Commission expected to complete its assessment of the cost implications within three weeks.
Despite the agreements, the government and organised labour failed to resolve their disagreement over the effective date for implementing the national minimum wage.
Both parties, however, agreed to constitute a Minimum Wage Negotiation Committee and begin meetings immediately to address the outstanding issues.
The parties also discussed tax relief for workers and hazard allowances for agricultural officers.
The tax relief proposal will be referred to the National Economic Council for consideration, while the agricultural officers’ hazard allowance remains subject to verification of beneficiaries and associated costs.
The meeting followed sustained pressure from organised labour for measures to reduce the economic burden on Nigerian workers, including demands relating to fuel prices, outstanding allowances and improved remuneration.
The NLC leadership had expressed concern over delays in addressing workers’ welfare demands, prompting further engagement with the government through the Ministry of Labour and Employment.
Both parties have agreed to reconvene after one month to assess progress on implementing the resolutions. State and local governments were also urged to adopt the intervention measures within their respective public services.
The six-month transport allowance represents a temporary intervention in the face of rising living costs.
Its actual impact will depend on timely payment and the extent to which the additional support helps workers manage their daily commuting expenses and other essential household needs.
