By Samuel Olusegun Precious
The Federal Government has approved a monthly transport allowance of N70,000 for public sector workers for a period of six months.
The decision was contained in a resolution reached at the end of a conciliation meeting between the Federal Government and the Nigeria Labour Congress (NLC) on Tuesday night in Abuja.
According to the agreement, the transport intervention of N70,000 will commence from November 2026 and will be paid across all levels for six months.The meeting was convened by the Federal Ministry of Labour and Employment to address workers’ welfare concerns and avert a planned nationwide strike.
The resolution was signed on behalf of the Federal Government by Dr Muhammad Dingyadi, Minister of Labour and Employment; Mr Tanimu Yakubu, Director-General of the Budget Office; and Dr Garba Abdul, Permanent Secretary, Service Welfare Office.NLC President, Comrade Joe Ajaero and Secretary of the Joint National Public Service Negotiation Council, Olowoye Gbenga signed for labour.
Other resolutions:
The Federal Government also approved a peculiar allowance with effect from May 1, 2026, with arrears payment in three equal monthly installments from November. 19 months outstanding allowances owed to health workers will be settled within three months starting December 2026.
The Minimum Wage Negotiation Committee will be constituted immediately, while hazard allowance for agricultural officers will be verified within two weeks.Demand for tax relief for workers was referred to the National Economic Council.
Meanwhile, as federal public sector workers are set to earn double pay from November as the Federal Government’s N70,000 transport allowance takes effect – a move that has left states and local governments under pressure.
With the current national minimum wage at N70,000, federal workers will now take home N140,000 monthly (N70k salary + N70k transport allowance) for six months, from November 2026 to April 2027.
The agreement was reached on Tuesday between the Federal Government and the Nigeria Labour Congress (NLC) to avert a nationwide strike.
States, LGs Not Covered
The allowance is strictly for federal workers. It does not automatically apply to state civil servants, local government workers, teachers, or private sector employees.
However, labour leaders in states are already demanding the same. A senior NLC official in Abuja noted that: “If the Federal Government can pay, why can’t states that receive increased FAAC? Workers face the same transport costs.”
Can States Cope?Many states are still struggling to fully implement the N70,000 minimum wage signed in 2024. States like Zamfara, Benue, Abia and others were only recently pressured to comply after months of arrears. Local governments are worse off, with wage bills consuming up to 90% of their monthly allocation despite the Supreme Court ruling on direct funding.
Governors with high Internally Generated Revenue (IGR) such as Lagos, Rivers, and Akwa Ibom may be able to offer some relief, but low-IGR states say they cannot. One Commissioner for Finance in North-Central who asked not to be named said: “FG can borrow $20 billion. We cannot. FAAC is shared. If we pay extra N70k to all state workers for 6 months, we won’t pay contractors.”
What Next?
The Federal Government has referred tax relief for workers to the National Economic Council, where governors sit. The Minimum Wage Negotiation Committee is also to be reconstituted – its outcome will be binding on all tiers.Until then, the transport allowance risks creating two classes of Nigerian workers – federal workers earning double, and state/LG workers stuck on old pay – just three months to the January 2027 presidential election.
Labour in at least 12 states is already threatening to issue fresh ultimatums.
In one line: Federal Government dangles pre-election relief, states and local councils left to carry the political fallout.
Reactions trail announcement:
While the government described the move as temporary relief for workers facing high transport costs, some Nigerians on social media described it as vote buying ahead of the January 16, 2027 presidential election. Labour has since suspended its planned strike following the agreement.
The development comes as President Bola Tinubu requested Senate approval for $20.51 billion and €1.45 billion external borrowing to fund the 2026-2027 supplementary budget.
