The Bola Tinubu administration has agreed to pay public service workers a monthly transport allowance of ₦70,000 for six months, beginning in November, as pressure mounts over the cost of living ahead of Nigeria’s 2027 general election.
The agreement, reached with the Nigeria Labour Congress (NLC) in Abuja on Tuesday, also provides for the payment of outstanding allowances and 19 months of arrears owed to health workers.
The intervention comes more than three years after the government removed the petrol subsidy in May 2023 and pursued naira devaluation, policies that contributed to a sharp increase in the cost of transportation, food and other essentials. The resulting squeeze on household incomes has left workers struggling to maintain their standard of living as their earnings lose purchasing power.
For millions of Nigerians, the hardship has persisted despite repeated demands for relief from labour unions and other groups. The new agreement offers some support to public servants, but only for six months, leaving questions about what happens when the payments end and whether the intervention will keep pace with workers’ actual expenses.
The timing also places the agreement in the run-up to the 2027 elections, when the administration’s economic record and the effect of its policies on household welfare are facing renewed scrutiny.
The Federal Ministry of Labour and Employment convened a conciliation meeting on October 22, followed by Tuesday’s negotiations after the organized labour continued to demand action on wages and economic relief.
Under the agreement, the government will pay ₦70,000 monthly to public service workers across all levels for six months from November. The document does not specify the exact payment dates or the administrative arrangements for disbursement.
The government also approved peculiar allowance arrears, effective from May 1, with payments scheduled to begin in November in three equal monthly instalments. The agreement does not disclose the total amount involved.
For health workers, the government committed to clearing 19 months of outstanding allowances within three months, beginning in December.
The agreement was signed by Minister of Labour and Employment Muhammad Dingyadi, Budget Office Director-General Timi Yakubu and Garba Abdul, permanent secretary of the Service Welfare Office in the Office of the Head of the Civil Service of the Federation. NLC President Joe Ajaero and Olowoyo Gbenga, national secretary of the Joint National Public Service Negotiation Council, signed for labour.
The NLC has continued to press for improved working conditions as rising household expenses erode workers’ earnings. The government, for its part, said it was addressing the demands through structured negotiations.
Three years of economic strain
The transport allowance comes against the backdrop of the economic shock that followed the removal of the petrol subsidy in 2023 and the devaluation of the naira.
The subsidy removal immediately raised petrol prices, pushing up the cost of commuting, transporting food and moving goods. The naira’s depreciation increased the domestic cost of imported goods and inputs, adding to inflationary pressures.
Although the government has defended its reforms as necessary to stabilise the economy and address longstanding fiscal and foreign-exchange problems, workers and households have borne much of the immediate adjustment through higher prices and reduced purchasing power.
Labour unions have repeatedly demanded measures to cushion the impact, including wage increases, lower petrol prices and the implementation of outstanding welfare agreements.
Despite the agreement on transport support, the government and labour did not settle the effective date for implementing the outcome of further national minimum wage negotiations.
They agreed to constitute a Minimum Wage Negotiation Committee and begin meetings immediately, but remain divided over the implementation date.
On tax relief for workers, the meeting referred the matter to the NLC’s National Executive Council, noting that tax adjustments require consideration of the relevant statutory and policy processes.
The government also submitted the cost implications and beneficiary lists for a proposed hazard allowance for agricultural officers to the National Salaries, Incomes and Wages Commission for verification. The commission is expected to complete its review within two weeks and issue an implementation template.
The parties also agreed to address other outstanding public service remuneration issues, including the proposed adjustment to the Consolidated Health Salary Structure (CONHESS).
State and local governments were urged to participate in the intervention process, while unions were encouraged to monitor implementation.
Both sides agreed to reconvene after one month to review progress.
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