The Federal Government has approved a ₦70,000 monthly transport allowance for public servants for six months, beginning in November 2026, as part of efforts to ease the financial pressure on workers amid rising living costs.
The approval followed a conciliation meeting between the Federal Government and the Nigeria Labour Congress (NLC) in Abuja on October 27, where both parties discussed workers’ welfare, outstanding allowances, minimum wage negotiations and other labour-related issues.
The resolutions were contained in a memorandum of understanding signed by representatives of the government and organised labour.
Here are 10 important things public servants should know about the agreement.
1. Workers are to receive ₦70,000 monthly
The Federal Government has approved a monthly transport intervention of ₦70,000 for workers across all levels, according to the agreement reached with the NLC.
The measure is intended to provide temporary financial relief as workers continue to contend with increasing transportation costs and other living expenses.
2. Payment is scheduled to begin in November
The allowance is expected to commence in November 2026. However, the agreement does not specify the exact payment date or whether the money will be paid alongside workers’ regular salaries.
3. The intervention will last for six months
The transport support is scheduled to run for six months, from November 2026 through April 2027, subject to implementation of the agreement.
The memorandum does not indicate whether the intervention will be extended beyond the approved period.
4. Beneficiaries could receive ₦420,000 in total
Workers who qualify for the full six-month intervention could receive a total of ₦420,000, calculated at ₦70,000 monthly.
The amount represents six separate monthly payments, not a single lump-sum disbursement.
5. The allowance is separate from the national minimum wage
The transport intervention is distinct from the national minimum wage, which was increased from ₦30,000 to ₦70,000 in 2024.
During the latest meeting, the Federal Government and the NLC failed to agree on the effective date for implementing the minimum wage arrangements currently under discussion.
Both parties, however, agreed to establish a Minimum Wage Negotiation Committee and begin meetings immediately.
6. Payment procedures and eligibility details remain unclear
Although the memorandum confirms the amount and duration of the transport intervention, it does not outline the detailed payment process.
It remains unclear whether workers will be required to apply, which payment channels will be used or the precise categories of public servants eligible for the allowance.
Further clarification from the relevant authorities is therefore necessary before workers can determine how the intervention will affect them individually.
7. State and local government workers may depend on their respective authorities
The agreement urges state and local governments to participate in the intervention and encourages labour unions to push for its implementation.
However, the resolution does not establish that every state and local government has approved the payment.
Workers employed by state and local governments should therefore seek confirmation from their respective authorities rather than assume that the allowance will automatically be paid nationwide.
8. Outstanding peculiar allowance arrears will be paid in instalments
The Federal Government also approved the payment of outstanding peculiar allowance arrears, effective from May 1, 2026.
Disbursement is scheduled to begin in November 2026, with the arrears to be paid in three equal monthly instalments.
The memorandum does not disclose the total amount involved or how much individual beneficiaries will receive.
9. Health workers are covered by a separate arrears arrangement
The government agreed to settle 19 months of outstanding allowances owed to health workers within three months, beginning in December 2026.
The National Salaries, Incomes and Wages Commission is also expected to complete its assessment of the cost implications of adjusting the Consolidated Health Salary Structure within three weeks.
The assessment is intended to enable the Presidential Committee on Salaries to consider the proposed adjustment. A final decision on the adjustment has not yet been announced.
10. Tax relief and agricultural workers’ allowances remain under consideration
The agreement also addresses proposed tax relief for workers and hazard allowances for agricultural officers.
The beneficiaries and cost implications of the agricultural officers’ hazard allowances are undergoing verification, which is expected to be completed within two weeks. The relevant commission is expected to issue an implementation template afterwards.
The proposed tax relief, meanwhile, will be referred to the National Executive Council for consideration because taxation is a statutory matter.
The Federal Government and the NLC have agreed to reconvene after one month to review progress on implementing the resolutions.
What the agreement means for public servants
The approved transport allowance could provide temporary financial relief for eligible workers, with a potential total of ₦420,000 over six months.
However, important details concerning eligibility, payment procedures and implementation by state and local governments remain unresolved.
The agreement also leaves other issues, including the effective date of minimum wage implementation and proposed adjustments to health workers’ salaries, subject to further negotiations and decisions.
Ultimately, the extent of the relief workers receive will depend on how promptly the government implements the agreement and clarifies the outstanding administrative details.
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