The Federal Government has approved a monthly transport allowance of ₦70,000 for all federal public servants for six months to cushion soaring living costs.
The allowance will run from November 2026 to April 2027. It was the key resolution of a conciliation meeting between the Federal Government and the Nigeria Labour Congress, NLC, held at the Federal Ministry of Labour and Employment in Abuja on Tuesday.
Ministry of Labour spokesperson Annah Daniel said federal government workers would receive the payout from next month, as part of a deal with the main labour union to ease economic pressure on workers.
The agreement also covers long-standing arrears. The government pledged to clear peculiar allowance arrears dating back to May 1, 2026, with payment in three equal monthly instalments starting in November. Health workers are to receive 19 months of unpaid allowance arrears, with the backlog to be cleared within three months from December 2026, meeting a long-standing union demand.
Both sides also agreed to immediately constitute a Minimum Wage Negotiation Committee to commence work on a new national minimum wage. However, they remain divided over when any increase should take effect.
The deal comes amid mounting pressure over the cost-of-living crisis. Officials said additional measures, including tax relief for workers and proposed hazard allowances for agricultural workers, will be referred to the National Economic Council for consideration.
The MoU was signed on behalf of the Federal Government by the Minister of Labour and Employment, Dr. Muhammad Maigari Dingyadi, Director-General Budget, Timi Yakubu, and Permanent Secretary, Dr. Garba Abdul S.U., while NLC President Joe Ajaero represented labour.
Both parties agreed to reconvene in a month to review progress on implementation.
