The Federal Government has approved a monthly transport allowance of N70,000 for public servants for six months, beginning in November 2026, 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 (NLC) in Abuja on Tuesday, October 27, following renewed demands for improved workers’ welfare.

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, both 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 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.

Speaking after the meeting, the NLC Assistant Secretary-General, Chris Onyeka, described the discussions as productive but said the outcome fell short of labour’s expectations.

“It was productive, but not as we had expected,” he said, adding that negotiations often require compromises.

“Sometimes you win some, lose some,” Onyeka said.

He confirmed that the transport allowance would run for six months from November and clarified that the proposed minimum wage negotiation committee would comprise representatives of the government, workers and employers.

Minimum Wage Implementation Date Unresolved

On the national minimum wage, the memorandum stated that the parties had agreed to constitute the negotiation committee and begin meetings immediately, but remained divided over the effective date of implementation.

The document 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 was increased from N30,000 to N70,000 monthly in 2024 following negotiations between the Federal Government and organised labour. The new rate was subsequently enacted into law.

The memorandum did not provide further details on the specific proposal under consideration or indicate when the latest discussions would be concluded.

Government Approves Outstanding Allowances

On peculiar allowances, the government approved payment of arrears effective from May 1, 2026, 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.”

However, the document did not disclose 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.”

The total value of the arrears and the specific payment dates were not disclosed.

Meanwhile, the National Salaries, Incomes and Wages Commission is expected to complete an updated assessment of the cost implications of the proposed adjustment to the Consolidated Health Salary Structure (CONHESS) within three weeks.

According to the memorandum, the assessment would enable the Presidential Committee on Salaries to consider the proposed adjustment.

“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 document stated.

No final decision has been announced on the adjustment.

Agricultural Officers’ Hazard Allowances Await Verification

The government also addressed hazard allowances for agricultural officers, with the payment process still at the verification stage.

The memorandum said 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 exercise is expected to be completed within two weeks, after which the commission will issue an implementation template.

The document did not specify the number of eligible officers or the total amount involved.

Tax Relief Referred to NEC

On tax relief for workers, the parties agreed to refer the matter to the National Executive Council for further consideration because of its statutory implications.

“Since tax is a statutory matter, the issue of tax relief for workers will be taken to National Executive Council (NEC),” the memorandum stated.

It did not specify the proposed relief measures or when the council would consider them.

Organised labour has repeatedly called for measures to ease the pressure on workers’ purchasing power amid rising transportation, food, housing and other household expenses.

The memorandum also acknowledged disagreements between the parties over the pace of addressing workers’ demands.

It said the NLC leadership “expressed concern over the Federal Government’s attitude towards the above issues.”

The Federal Government, in response, “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.”

Parties to Review Implementation in One Month

The memorandum urged state and local governments to participate in the intervention process, noting their responsibilities for the welfare of workers in their respective public services.

“State Governments and Local Governments are urged to key into the intervention process. Unions are equally enjoined to push for its implementation,” it stated.

Both parties also agreed to reconvene after one month to assess progress on the resolutions.

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 cover the transport allowance, payment of outstanding peculiar allowances and other welfare issues.

The meeting followed an earlier conciliation session held on October 22, 2026, as the Ministry of Labour and Employment sought to address disagreements between the government and organised labour.

While the latest agreement provides for financial interventions and further negotiations, the effective date for minimum wage implementation, the CONHESS adjustment, agricultural officers’ hazard allowances and proposed tax relief remain subject to further action.