The Federal Government has approved a N70,000 monthly transport allowance for public servants for six months, beginning in November, to cushion the impact of rising living costs.
The approval was one of the resolutions reached at a conciliation meeting between the Federal Government and the Nigeria Labour Congress in Abuja on Tuesday, following renewed pressure from organised labour over workers’ welfare, the rising cost of living and outstanding agreements.
The government also approved the payment of outstanding peculiar allowance arrears, effective from May 1, 2026, in three equal monthly instalments beginning in November.
However, the parties failed to agree on the effective date for implementing the national minimum wage, although they agreed to immediately constitute a Minimum Wage Negotiation Committee.
The resolutions were contained in a memorandum of understanding signed at the end of the meeting by the Director-General of Budget, Timi Yakubu; NLC President, Joe Ajaero; the Permanent Secretary, Service Welfare Office, Office of the Head of the Civil Service of the Federation, Dr Garba Abdul S.U.; and the Minister of Labour and Employment, Dr Muhammad Maigari Dingyadi.
The document, titled ‘Resolutions Reached at a Conciliation Meeting Held at Federal Ministry of Labour and Employment Between the Federal Government and the Leadership of Nigeria Labour Congress on Tuesday, 27th October, 2026’, outlined agreements on transport support, outstanding allowances, minimum wage negotiations, health workers’ remuneration, tax relief and hazard allowances for agricultural officers.
Speaking on the outcome of the meeting, the NLC Assistant Secretary-General, Chris Onyeka, described the discussions as productive but said they fell short of labour’s expectations.
“It was productive, but not as we had expected,” he said.
Onyeka said negotiations often required compromises, adding that parties could not always achieve all their objectives.
“Sometimes you win some, lose some,” he said.
He clarified that the proposed Minimum Wage Negotiation Committee would be tripartite, comprising representatives of the government, workers and employers.
He also confirmed that the transport allowance would be paid for six months, beginning in November.
The meeting followed an earlier conciliation session held on October 22, 2026, which the Federal Ministry of Labour and Employment convened to address disagreements between the government and organised labour.
The latest resolutions provide for some financial interventions, while several workers’ demands remain subject to further negotiations, administrative verification or decisions by relevant government bodies.
On the transport allowance, the memorandum stated, “That transport intervention of Seventy Thousand Naira (N70,000) commencing from November 2026 would be paid across all levels for a period of six months.”
The document did not specify the exact payment dates or the administrative arrangements for disbursing the allowance.
The agreement comes amid persistent concerns over rising transportation costs and the prices of essential goods following the removal of the petrol subsidy in May 2023, which contributed to increased living costs across the country.
Organised labour has repeatedly called for measures to ease the economic pressure on workers, including lower petrol prices, improved wages and the implementation of outstanding welfare agreements.
The NLC had also expressed concerns about the government’s handling of its demands, prompting the intervention of the Ministry of Labour and Employment.
Addressing the disagreement, the memorandum said the NLC leadership “expressed concern over the Federal Government’s attitude towards the above issues.”
It added that the Federal Government “stated that it fully respect the right of the Congress to advocate for improved working conditions for Nigerian workers, and is genuinely trying to address every aspect of it through a structured intervention.”
The statements reflect continuing differences between the two parties over the pace of addressing workers’ demands, despite their commitment to further negotiations.
On the national minimum wage, the parties agreed to constitute the Minimum Wage Negotiation Committee and commence meetings immediately.
However, the effective date of implementation remained unresolved.
The memorandum stated, “It was agreed that the Minimum Wage Negotiation Committee would be constituted and commence meeting immediately. It should however be noted that there is a disagreement on the effective date of implementation.”
The disagreement leaves a key issue unresolved despite the commitment to begin negotiations without delay.
The national minimum wage became a major issue in 2024 when the Federal Government and organised labour negotiated an increase in the statutory monthly minimum wage from N30,000 to N70,000. The new rate was subsequently enacted into law through the National Minimum Wage Act.
The latest agreement refers to the commencement of discussions and the implementation date of the national minimum wage but provides no further details on the specific proposal under consideration or when the negotiations are expected to conclude.
The NLC has continued to press for improved workers’ welfare as inflation and rising household expenses erode purchasing power. The government, meanwhile, has maintained that interventions must be addressed through structured negotiations and relevant administrative processes.
On peculiar allowances, the government confirmed approval for the payment of outstanding arrears, with disbursement scheduled to begin in November.
The memorandum stated, “The peculiar allowance have been approved by the Federal Government with effective from 1st May 2026. The payment of the arrears would commence in November, 2026 in three equal monthly instalments.”
The peculiar allowance arrears are to be paid in three equal monthly instalments beginning in November, although the memorandum did not specify the total amount involved or provide a breakdown of beneficiaries and individual payments.
For health workers, the government agreed to clear 19 months of outstanding allowance arrears within three months, beginning in December 2026.
The memorandum stated, “Nineteen (19) Months arrears of allowances for Health Workers to be redeemed within three (3) months with effect from December, 2026.”
However, the document did not disclose the total value of the arrears or the specific payment dates within the three-month period.
The agreement comes amid longstanding concerns over remuneration and welfare in Nigeria’s health sector, where disputes over salaries, allowances and the implementation of agreements have periodically triggered industrial tensions.
On the proposed adjustment to the Consolidated Health Salary Structure (CONHESS), which covers eligible health professionals in the public service, the memorandum said the National Salaries, Incomes and Wages Commission had undertaken to complete an updated assessment of the cost implications within three weeks.
It stated, “NSIWC promised to complete the update of the cost implication within three (3) weeks to enable the Presidential Committee on Salaries to take decision on the CONHESS adjustment.”
The assessment is expected to guide the Presidential Committee on Salaries in considering the proposed adjustment. However, no final decision has been announced, as the commission is yet to complete its review of the financial implications.
The government also addressed the payment of hazard allowances to agricultural officers.
According to the memorandum, the Federal Ministry of Agriculture and Food Security had submitted the list of beneficiaries and the associated cost implications to the National Salaries, Incomes and Wages Commission for verification.
The document stated, “The Federal Ministry of Agriculture and Food Security had just submitted the list of beneficiaries and the cost implication to NSIWC which is being verified.”
It added that the verification was expected to be completed within two weeks, after which the commission would issue an implementation template.
“The verification is expected to be completed within two weeks after which the template for implementation would be issued by the NSIWC,” the memorandum stated.
The payment process therefore remains at the verification stage, with implementation dependent on the completion of the exercise and the issuance of the relevant template. The document did not specify the number of eligible agricultural officers or the total amount involved.
On tax relief for workers, the parties agreed to refer the issue to the National Executive Council for further consideration, citing its statutory implications.
The memorandum stated, “Since tax is a statutory matter, the issue of tax relief for workers will be taken to National Executive Council (NEC).”
It did not specify the tax relief measures under consideration or when the NEC would deliberate on the matter.
Tax relief has featured in broader discussions about workers’ purchasing power as households contend with rising costs of transportation, food, housing and other necessities. For organised labour, such relief forms part of efforts to improve workers’ disposable income and ease economic pressures.
The latest resolutions leave several issues outstanding, including the conclusion of minimum wage discussions, a decision on the CONHESS adjustment, verification of agricultural officers’ hazard allowances and consideration of tax relief.
The memorandum also urged state and local governments to participate in the intervention process, noting that the authorities have responsibilities for the welfare of workers in their respective public services.
It stated, “State Governments and Local Governments are urged to key into the intervention process. Unions are equally enjoined to push for its implementation.”
The parties also agreed to review the implementation of the resolutions after one month.
The memorandum stated, “Both parties to reconvene after a period of one month to appraise the level of implementation of the resolution.”
The review is expected to assess progress on the transport allowance, payment of peculiar allowance arrears and other outstanding issues.
The meeting brought together representatives of the Federal Government and the NLC leadership in an effort to address the disagreements and prevent them from escalating into further industrial action.
The latest agreement provides a framework for continued engagement, but its impact on workers’ welfare will depend on the implementation of the approved measures and progress on the issues that remain unresolved.
Source: punchng.com
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