FG, NLC agree on ₦70,000 transport allowance and health workers’ arrears

Following intensive negotiations in Abuja, the Federal Government and the Nigeria Labour Service (NLC)—led by President Joe Ajaero—have reached an agreement aimed at easing the severe economic pressure weighing on Nigerian workers.

Under the terms of the new pact, the federal government will roll out a ₦70,000 monthly transport intervention across all levels of the civil service for six months, commencing in November 2026.

Additionally, the government has approved the immediate payment of long-delayed peculiar allowances effective from May 1, 2026, with arrears structured to be disbursed in three equal monthly installments starting next month.

Relief for Healthcare Workers and Civil Servants

A critical component of the agreement addresses the grievances of public health workers, who have faced protracted delays in receiving structural remuneration. The federal government has committed to clearing 19 months of outstanding allowances owed to health personnel, with disbursements scheduled to run over a three-month period beginning in December 2026.

Speaking on the breakthrough, labor leaders expressed cautious optimism that the interventions will provide tangible relief to families grappling with high inflation, soaring fuel pump prices, and elevated transportation costs.

The NLC leadership, represented by President Joe Ajaero alongside the Joint National Public Service Negotiation Council (JNPSNC) National Secretary, Olowoyo Gbenga, underscored the importance of strict compliance from state and local governments.

“The Federal Government and the NLC have strongly urged state and local governments to key into this intervention process to ensure that workers nationwide feel the impact,” labor representatives noted in a joint briefing. “Unions are equally encouraged to monitor implementation closely.”

Unresolved Issues and Next Steps

While the agreement successfully resolves immediate cash-flow pressures regarding transportation and health sector arrears, discussions on broader structural issues remain ongoing.

During the marathon negotiation sessions, both sides addressed the national minimum wage framework. While agreement was reached to constitute and immediately inaugurate the Minimum Wage Negotiation Committee, parties remain divided over the precise effective date for full implementation across various public sectors.

On the issue of statutory tax relief for workers, the meeting resolved to refer the matter to the National Executive Council (NEC), as tax adjustments require legislative policy amendments.

Additionally, the Federal Ministry of Agriculture and Food Security submitted cost implications and beneficiary lists for a proposed hazard allowance for agricultural officers to the National Salaries, Incomes and Wages Commission (NSIWC) for verification. The commission is expected to conclude its review within two weeks before issuing an implementation template.

Both the Federal Government and organized labor are scheduled to reconvene in one month to review compliance and assess the rollout of the newly agreed welfare measures.