The Federal Government has approved a ₦70,000 monthly transport allowance for public servants for six months, beginning in November 2026.
The agreement followed negotiations with the Nigeria Labour Congress (NLC) in Abuja on Tuesday, October 27.
The intervention aims to ease the financial pressure facing workers amid rising transportation costs and broader economic difficulties.
The government also agreed to clear outstanding peculiar allowance arrears in three monthly installments.
Additionally, it approved arrangements to address outstanding allowances owed to health workers.
However, the negotiations did not resolve disagreements over when discussions on a new national minimum wage should begin.
The outcome represents a significant development in the government’s efforts to address organised labour’s demands and prevent further industrial tension.
According to Channels Television, the resolutions followed a conciliation meeting convened by the Federal Ministry of Labour and Employment.
FG Approves Six-Month Transport Support
Under the agreement, the Federal Government will provide a monthly transport intervention of ₦70,000 for six months.
Payments are scheduled to begin in November 2026 and continue through the six-month period.
The agreement was reached during a meeting between government representatives and the NLC leadership.
The meeting took place at the Federal Ministry of Labour and Employment in Abuja.
Labour Minister Muhammad Maigari Dingyadi chaired the meeting, while NLC President Joe Ajaero led the union’s delegation.
The resolutions were documented in a memorandum of understanding signed by representatives of both parties.
The allowance is intended to provide temporary financial relief as workers contend with rising living expenses.
However, the intervention is separate from a permanent increase in the national minimum wage.
The available agreement also does not establish that every Nigerian worker will automatically receive the payment.
Its immediate scope concerns the public service, while state and local governments have been urged to participate in the process.
Further administrative clarification may be necessary regarding eligibility and payment arrangements.
The government and labour representatives have agreed to review implementation after one month.
Peculiar Allowance Arrears to Be Paid in Three Installments
The government has also approved payment of outstanding peculiar allowance arrears, effective from May 1, 2026.
According to the agreement, payment will begin in November.
The outstanding amounts will be settled in three equal monthly installments.
The arrangement is intended to address unpaid allowances owed to eligible public servants.
However, the published agreement does not specify the total amount of arrears involved.
It also does not disclose how much each individual beneficiary will receive.
The actual amount payable will depend on the allowances due to each eligible worker.
The payment schedule means workers should not assume that all outstanding arrears will arrive in November.
Instead, the government plans to distribute the payments across three monthly installments.
Implementation will be important in determining whether the agreement delivers the expected relief.
The government and labour representatives are expected to assess progress during their next review meeting.
Health Workers to Receive 19 Months of Outstanding Allowances
The agreement also addresses outstanding allowances owed to health workers.
The government has committed to redeeming 19 months of allowance arrears within three months, beginning in December 2026.
This commitment represents a separate welfare measure from the six-month transport intervention.
The arrangement responds to longstanding concerns about unpaid entitlements in the health sector.
Health workers’ allowance payments have formed part of organised labour’s demands during recent negotiations.
The government has also addressed the proposed adjustment of the Consolidated Health Salary Structure, known as CONHESS.
According to the published resolutions, the National Salaries, Incomes and Wages Commission will complete its assessment of the adjustment’s cost implications within three weeks.
The assessment will enable the Presidential Committee on Salaries to consider the proposed adjustment.
However, the cost assessment does not mean that the salary adjustment has already received final approval.
The next steps will depend on the commission’s findings and the subsequent decision-making process.
Agricultural Workers’ Hazard Allowances Under Review
The negotiations also addressed outstanding hazard allowances for agricultural workers.
The Federal Ministry of Agriculture and Food Security has submitted the list of beneficiaries and the associated cost implications for verification.
The National Salaries, Incomes and Wages Commission is responsible for reviewing the submission.
The verification process is expected to be completed within two weeks.
Afterward, the commission is expected to issue an implementation template.
This process is intended to establish the beneficiaries and financial requirements before implementation proceeds.
The published agreement does not indicate that payments have already commenced.
Agricultural workers awaiting these allowances will therefore need to follow subsequent announcements about verification and implementation.
The issue remains part of the broader negotiations over outstanding public-sector welfare commitments.
Tax Relief Proposal Awaits Further Consideration
Tax relief for workers was another issue discussed during the meeting.
Organised labour has argued that workers need additional support amid rising living costs.
However, the government indicated that the tax relief proposal would be referred to the National Economic Council for consideration.
The explanation given was that taxation involves statutory matters requiring further consideration.
Consequently, the latest agreement does not establish an immediate tax reduction for workers.
Any relief will depend on the subsequent consideration and decisions of the relevant authorities.
The issue remains unresolved, despite the progress made on transport support and outstanding allowances.
Workers should therefore distinguish between proposals under consideration and measures formally approved for implementation.
Minimum Wage Negotiations Remain Unresolved
Despite the agreements on transport support and allowances, the government and labour representatives have not agreed on the effective date for implementing a new national minimum wage.
Nigeria’s current statutory minimum wage is ₦70,000 monthly.
It followed legislation signed by President Bola Tinubu in July 2024.
The Federal Government has maintained that the next review is due in June 2027.
The government has cited the three-year review cycle under the applicable minimum wage legislation.
The NLC, however, has demanded that preparations for another wage review begin immediately.
Labour argues that workers’ purchasing power has come under significant pressure from rising living costs.
The disagreement was one of the central issues behind the recent negotiations.
Although the parties did not settle the timetable, they agreed to constitute a Minimum Wage Negotiation Committee immediately.
The committee is expected to begin addressing the process for further negotiations.
Its work could help clarify the timetable and issues surrounding a future wage review.
However, no new minimum wage amount has been agreed upon through the latest meeting.
The transport intervention should therefore not be interpreted as a replacement for minimum wage negotiations.
Government and Labour to Review Implementation
The agreement includes a plan for both parties to reconvene after one month.
The follow-up meeting will assess the level of implementation of the resolutions.
This review will be important in determining whether the agreed payments and other commitments are progressing as scheduled.
The government and NLC have also urged state and local governments to participate in the intervention process.
However, the implementation arrangements may differ across levels of government.
Public servants should follow announcements from their respective authorities for specific guidance about eligibility and payment procedures.
The agreement provides a framework for addressing several outstanding welfare issues.
Its practical impact will depend on whether the responsible institutions meet the agreed deadlines.
What the Agreement Means for Nigerian Workers
The ₦70,000 monthly transport intervention offers temporary support to eligible public servants beginning in November.
The government has also set out payment arrangements for outstanding peculiar allowances and health-sector arrears.
Other commitments concern agricultural workers’ hazard allowances and the assessment of CONHESS adjustments.
Tax relief remains subject to further consideration.
Meanwhile, the timing of a new national minimum wage review remains unresolved.
The next month will therefore be important for assessing implementation and determining whether negotiations make further progress.
For now, workers should await official guidance on payment arrangements and any additional decisions.
This Dawn News will continue monitoring developments concerning the transport allowance, outstanding arrears and minimum wage negotiations.
