ABUJA — The Federal Government and the Nigeria Labour Congress (NLC) have signed a Memorandum of Understanding approving a N70,000 monthly transport allowance for public servants to cushion the impact of rising living costs.
The agreement, reached during a high-stakes conciliation meeting in Abuja on Tuesday, October 27, 2026, sets a six-month timeline for the transport intervention beginning in November.
The resolutions follow intense pressure from organized labor regarding worker welfare, persistent inflation, and fuel subsidy removal impacts.
Key Financial Interventions Approved: Transport Allowance: N70,000 monthly across all public service levels for six months, commencing November 2026.
Peculiar Allowance Arrears: Outstanding arrears effective from May 1, 2026, to be disbursed in three equal monthly installments starting in November.
Health Workers’ Arrears: 19 months of outstanding allowance arrears to be cleared within a three-month window starting in December 2026.
Agricultural Hazard Allowance: The National Salaries, Incomes and Wages Commission (NSIWC) is verifying the beneficiary list, with an implementation template expected within two weeks.
Deadlock on Minimum Wage Date & CONHESS
Despite the financial commitments, critical disputes remain unresolved. While both parties agreed to immediately form a tripartite Minimum Wage Negotiation Committee, they failed to reach a consensus on the effective date for implementing the national minimum wage.
Additionally, the proposed adjustment to the Consolidated Health Salary Structure (CONHESS) awaits an updated financial assessment by the NSIWC, expected within three weeks, before being submitted to the Presidential Committee on Salaries.
Given statutory requirements, proposed tax relief measures for workers have been referred to the National Executive Council (NEC) for further consideration.
Implementation Review in 30 Days
NLC Assistant Secretary-General Chris Onyeka described the talks as productive, though noting they fell short of labor’s full expectations.
”It was productive, but not as we had expected,” Onyeka said. “Sometimes you win some, lose some.”
The MOU was signed by Minister of Labour and Employment Dr. Muhammad Maigari Dingyadi, NLC President Joe Ajaero, Budget Director-General Timi Yakubu, and Permanent Secretary Garba Abdul S.U.
The agreement explicitly urges state and local governments to replicate the relief measures in their respective domains. Both parties are scheduled to reconvene in late November to review the progress of implementation.