Federal Government to give public servants ₦70,000 transport allowance for six months

Federal transport allowance announced

A pact was struck between the Federal Government and the Nigeria Labour Congress (NLC) on 27 October 2026, guaranteeing public sector employees at every tier a monthly transport allowance of ₦70,000. The payment will begin in November 2026 and continue for six months.

This consensus emerged from a conciliation session conducted at the Federal Ministry of Labour and Employment headquarters in Abuja. The meeting followed an earlier session on 22 October that addressed workers’ concerns over rising living costs, the national minimum wage, fuel prices and outstanding allowances.

Background

The NLC has repeatedly urged the government to ease economic pressure on workers, citing the removal of the petrol subsidy in May 2023 and the subsequent rise in transport and food prices. Earlier in the year, the government had approved the payment of peculiar allowance arrears, effective from 1 May 2026, to be paid in three equal monthly instalments beginning in November.

Beyond the transport subsidy, the memorandum of understanding finalized at the conclusion of the talks mandated the settlement of 19 months of outstanding wages for medical staff, structured as three equal payments beginning in December 2026. The document also addressed health workers’ remuneration, tax relief, hazard allowances for agricultural officers and the establishment of a Minimum Wage Negotiation Committee.

Why it matters

The transport allowance is intended to cushion public servants against the cost of living, particularly transport costs that have risen since the petrol subsidy was removed. The agreement also includes the payment of arrears to health workers, which is significant given the long delay in these payments. The establishment of a Minimum Wage Negotiation Committee indicates ongoing negotiations over the national minimum wage, a key issue for workers across the country.

What happens next

The Ministry of Labour and Employment will implement the transport intervention starting in November 2026. The payment of the peculiar allowance arrears will also commence in November, while the health workers’ arrears will be paid from December. The parties agreed to reconvene after one month to review the implementation of the resolutions. The National Executive Council will be consulted on tax relief matters, and the National Salaries, Incomes and Wages Commission will verify the cost implications of hazard allowances for agricultural officers within two weeks.

The document was executed by Dr Muhammad Maigari Dingyadi, the Minister of Labour and Employment; Timi Yakubu, the Director-General of Budget; and Dr Garba Abdul S., the Permanent Secretary (SWO).U.; NLC President, Joe Ajaero; and National Secretary of the Joint National Public Service Negotiation Council, Olowoyo Gbenga.