The Federal Government has approved a monthly transport allowance of N70,000 for workers for six months, starting in November, in order to cushion the effect of rising living costs.
The approval was one of the resolutions reached on Tuesday at a conciliation meeting in Abuja between the Federal Government and the Nigeria Labour Congress, following renewed pressure from organized labor 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, to be paid in three equal monthly installments starting in November.
The parties, however, could not agree on the effective date for implementing the national minimum wage, although they agreed to immediately set up 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’, set out agreements on transport support, outstanding allowances, minimum wage negotiations, health workers’ remuneration, tax relief and hazard allowances for agricultural officers.
Commenting 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 stated that negotiations often required compromises, adding that parties could not always achieve all their objectives.
“Sometimes you win some, lose some,” he said.
He made it clear that the proposed Minimum Wage Negotiation Committee would be tripartite, bringing together representatives of the government, workers, and employers.
He also confirmed that the transport allowance would be paid over six months, starting in November.
The meeting came after an earlier conciliation session on October 22, 2026, which the Federal Ministry of Labour and Employment convened to resolve disagreements between the government and organized labor.
The latest resolutions allow for some financial interventions, while several of the workers’ demands are still subject to further negotiations, administrative verification, or decisions by the relevant government bodies.
Regarding 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 state the exact payment dates or the administrative arrangements for disbursing the allowance.
The agreement comes amid ongoing concerns about rising transportation costs and the prices of essential goods following the removal of the petrol subsidy in May 2023, which helped push up living costs across the country.
Organized labor has repeatedly urged measures to ease the economic pressure on workers, including lower petrol prices, better wages, and the implementation of outstanding welfare agreements.
The NLC had also raised concerns about how the government was handling its demands, which led the Ministry of Labour and Employment to intervene.
Speaking on the disagreement, the memorandum said the NLC leadership “expressed concern over the Federal Government’s attitude towards the above issues.”
It also stated that the Federal Government “stated that it fully respects 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 point to ongoing disagreements between the two parties regarding how quickly workers’ demands should be addressed, even though both sides have committed to continued negotiations.
Regarding the national minimum wage, the parties agreed to establish the Minimum Wage Negotiation Committee and to begin meetings without delay.
The effective date for implementation, however, was left 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.”
This disagreement leaves a central issue unresolved, notwithstanding the commitment to start negotiations without delay.
The national minimum wage emerged as a major issue in 2024, when the federal government and organized labor negotiated an increase in the statutory monthly minimum wage from N30,000 to N70,000. The new rate was later given legal force through the National Minimum Wage Act.
The latest agreement covers the start of discussions and the implementation date of the national minimum wage, but it offers no further details on the specific proposal being considered or on when the negotiations are expected to conclude.
The NLC has kept pushing for better workers’ welfare as inflation and rising household costs erode purchasing power. The government, for its part, has insisted that interventions must be handled through structured negotiations and the relevant administrative processes.
On peculiar allowances, the government confirmed its approval for the payment of outstanding arrears, with disbursement set to begin in November.
The memorandum stated, “The peculiar allowance has been approved by the Federal Government and is effective from 1st May 2026. The payment of the arrears would commence in November 2026 in three equal monthly installments.”
The unusual allowance arrears will be paid in three equal monthly instalments starting in November, though the memorandum did not state the total sum involved or give a breakdown of beneficiaries and individual payments.
For health workers, the government agreed to settle 19 months of unpaid allowance arrears within three months, starting 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.”
The document, however, did not reveal the total value of the arrears or the exact payment dates within the three-month window.
The agreement comes amid long-standing concerns about pay and welfare in Nigeria’s health sector, where disputes over salaries, allowances, and the implementation of agreements have from time to time sparked industrial tensions.
On the proposed adjustment to the Consolidated Health Salary Structure (CONHESS), which applies to eligible health professionals in the public service, the memorandum said the National Salaries, Incomes and Wages Commission had committed to completing 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 a decision on the CONHESS adjustment.”
The assessment is anticipated to assist the Presidential Committee on Salaries as it evaluates the proposed adjustment. However, no final decision has been made public, since the commission has not yet finished reviewing the financial implications.
The government also spoke to the matter of hazard allowance payments for agricultural officers.
As stated in the memorandum, the Federal Ministry of Agriculture and Food Security had forwarded the list of beneficiaries and the related cost implications to the National Salaries, Incomes and Wages Commission so that they could be verified.
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 also stated 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 thus stays at the verification stage, and implementation depends on the exercise being completed and the relevant template being issued. The document did not state how many eligible agricultural officers there were or the total amount involved.
Regarding tax relief for workers, the parties agreed to send the matter 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 the National Executive Council (NEC).”
It did not state which tax relief measures are being considered or when the NEC would deliberate on the matter.
Tax relief has been part of wider discussions about workers’ purchasing power, as households grapple with rising costs of transportation, food, housing, and other necessities. For organized labor, such relief is part of efforts to boost workers’ disposable income and ease economic pressures.
The latest resolutions leave several issues unresolved, 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 called on state and local governments to take part in the intervention process, noting that the authorities bear 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 likewise enjoined to push for its implementation.”
The parties also agreed to review how the resolutions are being implemented 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 gauge 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 keep them from escalating into further industrial action.
The latest agreement sets out a framework for continued engagement, but its effect on workers’ welfare will hinge on how the approved measures are implemented and on progress regarding the issues still unresolved.
