TUC rejects FG’s proposed N70,000 transport allowance, demands salary increase

The Trade Union Congress (TUC), has rejected the Federal Government’s proposed N70,000 monthly transport allowance for public sector workers, describing temporary palliatives as inadequate against Nigeria’s soaring inflation and demanding real wage increases instead.

The TUC, through its President, Festus Osifo, dismissed the financial proposal during a national executive briefing in Abuja, arguing that cash transfers and transport subsidies do little to solve the structural decline in workers’ purchasing power.

The government’s transport allowance proposal was floated as a relief measure following the removal of fuel subsidies and subsequent hikes in pump prices, which have severely inflated commuting and living expenses for urban workers across Lagos, Abuja, and other major economic hubs.

“Fix salaries, not temporary subsidies”

Speaking on behalf of the union, Festus Osifo emphasized that Nigerian workers require permanent adjustments to their base salaries rather than short-term allowances that can be eroded within weeks by macroeconomic shocks.

“We cannot continue to live on temporary fixes and palliatives that vanish the moment inflation ticks upward,” Osifo stated.

“The N70,000 transport allowance does not reflect the current economic realities faced by workers who spend a massive chunk of their monthly income just getting to and from their workplaces. What Nigerian workers need and are demanding is a genuine, comprehensive review of basic salaries that reflects the cost of living.”

Labor leaders pointed out that while fuel prices have more than tripled since the removal of the petroleum subsidy, wage adjustments have lagged far behind, leaving civil servants struggling to afford basic food items, healthcare, and housing.

The Federal Government, grappling with tight fiscal space and heavy debt-servicing obligations, introduced the transport allowance scheme in an effort to cushion the impact of public sector operational costs without triggering permanent inflationary spirals in the national budget.

However, economists and labor analysts note that cash allowances fail to address the root causes of worker distress in an environment where double-digit inflation continues to diminish the value of the naira.

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 has crushed the households’ living standards.

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 TUC has called on the federal and state governments to return to the negotiating table to formulate a sustainable wage framework, warning that unilateral palliatives will not stave off growing industrial discontent across the public service.