Precious Nwonu, Enugu
The Federal Government has approved a monthly transport allowance of ₦70,000 for public servants for six months, beginning in November 2026, to ease the impact of rising living costs.
The approval followed a conciliation meeting between the government and the Nigeria Labour Congress (NLC) in Abuja on Tuesday, October 27.
According to a memorandum of understanding signed by representatives of both parties, the government also approved the payment of outstanding peculiar allowance arrears from May 1, 2026, in three equal monthly instalments starting in November.
However, both parties failed to agree on the effective date for implementing the national minimum wage, prompting plans to immediately establish a tripartite Minimum Wage Negotiation Committee comprising the government, labour and employers.
The NLC Assistant Secretary-General, Chris Onyeka, described the meeting as productive but said its outcome fell short of the union’s expectations.
He explained that negotiations involved compromises and confirmed that the transport allowance would run for six months.
The agreement also provides for the settlement of 19 months of outstanding allowances owed to health workers within three months, beginning in December 2026.
On the proposed adjustment to the Consolidated Health Salary Structure (CONHESS), the National Salaries, Incomes and Wages Commission is expected to complete an assessment of the cost implications within three weeks. The findings will guide the Presidential Committee on Salaries in making a decision.
The payment of hazard allowances to eligible agricultural officers is also undergoing verification. The commission is expected to complete the process within two weeks before issuing an implementation template.
Meanwhile, the parties agreed to refer the issue of tax relief for workers to the National Executive Council for consideration, noting its statutory implications.
The memorandum further urged state and local governments to participate in the welfare intervention process and called on labour unions to push for its implementation.
Both parties agreed to reconvene after one month to assess progress on the resolutions.
The latest agreement comes amid persistent concerns over rising transportation costs and the prices of essential goods, which have continued to put pressure on workers’ purchasing power.