FG Agrees to Pay Workers ₦70,000 Monthly Transport Allowance for Six Months

The Federal Government has agreed to pay federal civil servants a monthly transport allowance of ₦70,000 for six months as part of an agreement with the Nigeria Labour Congress (NLC) to ease the impact of rising living costs.

The agreement was reached on Wednesday, October 28, 2026, according to Reuters. Ministry of Labour spokesperson Annah Daniel said payments would begin next month, providing temporary financial relief for eligible federal government workers.

Under the deal, the government also pledged to clear outstanding workers’ benefits, including arrears of a special allowance dating back to May 2026. The arrears will be paid in three monthly instalments beginning in November, according to the report.

The agreement also revives discussions on a new national minimum wage. Both the government and labour representatives agreed to immediately establish a wage negotiation committee, although they remain divided over when any proposed increase should take effect.

Health workers are also expected to benefit from the agreement, with the government pledging to clear 19 months of unpaid allowance arrears within three months starting in December 2026. The commitment addresses a longstanding demand by health-sector unions.

Other measures discussed include possible tax relief for workers, which will be referred to the National Economic Council for consideration. Proposed hazard allowances for agricultural workers are still undergoing verification and cost assessments before any decision is made.

The agreement comes amid continued pressure on Nigerian households from rising living costs following major economic reforms introduced under President Bola Tinubu. While the reforms have been credited with improving public finances, their effects on household purchasing power remain a significant concern.

Daniel said both parties had agreed to reconvene in one month to review progress in implementing the measures. The meeting is expected to assess whether the government has met its commitments on allowances, arrears and the broader wage discussions.