Nigeria Approves 70,000 Naira Monthly Transport Allowance for Federal Workers

Nigeria’s government agreed on Wednesday to pay federal government workers a 70,000 naira ($52) monthly transport allowance for six months. The deal with the Nigeria Labour Congress is meant to ease soaring living costs, officials said.

The payout starts next month, according to Ministry of Labour spokesperson Annah Daniel. The agreement also revives talks on a new national minimum wage and addresses outstanding worker benefits.

Allowance and arrears

The government pledged to clear outstanding worker benefits. This includes arrears of a special allowance dating back to May 2026. It will pay those arrears in three monthly instalments starting in November.

Health workers will receive 19 months of unpaid allowance arrears. The government pledged to clear the backlog within three months from December 2026, meeting a long-standing union demand.

Wage talks and other measures

Both sides agreed to immediately set up a wage negotiation committee. They remain divided over when any minimum wage increase should take effect.

Additional measures, including tax relief for workers, will be referred to the National Economic Council for consideration. Proposed hazard allowances for agricultural workers are undergoing verification and cost assessments.

Both sides agreed to reconvene in a month to review progress on implementing the measures, Daniel said.

Political pressure

The deal highlights the political sensitivity of rising prices ahead of President Bola Tinubu’s re-election bid in January. His reforms have been credited with improving public finances but have left millions of Nigerians reeling from the worst cost-of-living crisis in a generation.