Federal Government Approves Monthly Transport Allowance and Outstanding Arrears for Public Servants

The Federal Government has approved a monthly transport allowance of N70,000 for public servants across all levels, effective from November, as part of a series of resolutions reached with organized labor to cushion the impact of rising living costs.

The agreement was finalized during a conciliation meeting held in Abuja between government representatives and the leadership of the Nigeria Labour Congress. The session followed an earlier meeting on October 22, 2026, convened by the Federal Ministry of Labour and Employment to address mounting pressure from labor unions over workers’ welfare and outstanding agreements.

A memorandum of understanding signed at the conclusion of the talks outlines several financial interventions, alongside items that remain subject to further negotiation and administrative verification. The document was signed by Budget Director-General Timi Yakubu, NLC President Joe Ajaero, Dr. Garba Abdul S.U. from the Office of the Head of the Civil Service of the Federation, and Minister of Labour and Employment Dr. Muhammad Maigari Dingyadi.

Under the terms of the agreement, the N70,000 transport intervention will be disbursed across all public service levels for a period of six months beginning in November 2026. However, the memorandum did not specify exact payment dates or the administrative mechanics for disbursing the funds.

In addition to the transport support, the government approved the payment of outstanding peculiar allowance arrears dating back to May 1, 2026. These arrears are scheduled to be paid in three equal monthly instalments starting in November, although the total financial commitment and specific beneficiary breakdowns were not disclosed in the text.

The meeting also addressed remuneration issues in the health and agricultural sectors. Health workers are set to receive 19 months of outstanding allowance arrears, which the government agreed to clear within a three-month window beginning in December 2026. Meanwhile, the National Salaries, Incomes and Wages Commission has committed to updating cost implications for a proposed adjustment to the Consolidated Health Salary Structure within three weeks, allowing the Presidential Committee on Salaries to make a final decision.

For agricultural officers, the Federal Ministry of Agriculture and Food Security recently submitted a list of beneficiaries and associated costs to the NSIWC for verification. The verification process is expected to take two weeks, after which the commission will issue an implementation template for hazard allowances.

Despite these concessions, key areas of disagreement remain. The parties failed to reach a consensus on the effective implementation date for the national minimum wage, though they agreed to immediately establish a tripartite Minimum Wage Negotiation Committee comprising representatives from government, workers, and employers.

Additionally, discussions on worker tax relief were referred to the National Executive Council due to their statutory implications. State and local governments have been urged to adopt similar intervention measures for their respective public workforces.

Both delegations agreed to reconvene in one month to review the implementation status of the newly adopted resolutions.