The agreement between the Federal Government and the Nigeria Labour Congress also covers outstanding allowances, health workers’ arrears and further minimum wage negotiations, while tax relief and other welfare demands remain unresolved.
The Federal Government has approved a monthly transport allowance of ₦70,000 for public servants for six months, starting in November 2026, as part of measures to ease the financial pressure caused by rising transportation costs and the increasing cost of living.
The approval was among the resolutions reached during a conciliation meeting between the Federal Government and the Nigeria Labour Congress (NLC) in Abuja on Tuesday, October 27, 2026. The meeting was convened to address disagreements over workers’ welfare, outstanding commitments and demands for improved working conditions.
The parties also agreed to pay outstanding peculiar allowance arrears, effective from May 1, 2026, in three equal monthly instalments beginning in November. However, they did not reach an agreement on the effective date for implementing the national minimum wage, although they resolved to establish a Minimum Wage Negotiation Committee and begin discussions immediately.
The resolutions were documented in a memorandum of understanding signed by the Director-General of Budget, Timi Yakubu; NLC President, Joe Ajaero; the Permanent Secretary of the Service Welfare Office in the Office of the Head of the Civil Service of the Federation, Dr Garba Abdul S.U.; and the Minister of Labour and Employment, Dr Muhammad Maigari Dingyadi.
Titled Resolutions Reached at a Conciliation Meeting Held at Federal Ministry of Labour and Employment Between the Federal Government and the Leadership of Nigeria Labour Congress on Tuesday, 27th October, 2026, the document outlines agreements on transport assistance, allowance arrears, minimum wage negotiations, health workers’ remuneration, agricultural officers’ hazard allowances and tax relief.
NLC Describes Meeting as Productive Despite Unresolved Demands
Reacting to the outcome, NLC Assistant Secretary-General Chris Onyeka described the negotiations as productive but acknowledged that the agreements did not fully meet organised labour’s expectations.
“It was productive, but not as we had expected,” Onyeka said.
He explained that negotiations involve compromises and that neither party could expect to secure every demand.
“Sometimes you win some, lose some,” he added.
Onyeka also clarified that the proposed Minimum Wage Negotiation Committee would be tripartite, with representatives from the government, organised labour and employers.
He confirmed that the ₦70,000 transport intervention would cover six months, beginning in November. However, the memorandum did not state the precise payment dates or explain the administrative arrangements for distributing the funds.
The latest meeting followed an earlier conciliation session held on October 22, 2026, which the Federal Ministry of Labour and Employment organised to address the differences between the government and organised labour.
Transport Allowance Targets Rising Living Costs
According to the memorandum, the government approved the payment of a ₦70,000 transport intervention across all levels of the public service for six months, commencing in November 2026.
The measure comes amid persistent concerns over the rising cost of transportation and essential commodities following the removal of Nigeria’s petrol subsidy in May 2023, which contributed to increased living expenses.
Organised labour has repeatedly urged the government to introduce measures that would reduce the financial burden on workers. Its demands have included lower petrol prices, better wages and the fulfilment of outstanding welfare agreements.
The NLC had also expressed dissatisfaction with the government’s response to its demands, prompting further intervention by the Ministry of Labour and Employment.
Addressing the concerns, the memorandum noted that the NLC leadership had raised objections to the government’s handling of the issues under discussion.
The Federal Government, in response, said it respected the Congress’s right to advocate for better working conditions and maintained that it was making efforts to address the demands through structured interventions.
The positions outlined in the document indicate that differences remain over the pace at which workers’ concerns are being addressed, despite both parties agreeing to continue discussions.
Minimum Wage Implementation Date Remains Unresolved
The implementation date of the national minimum wage was one of the major issues left unsettled at the meeting.
Although the government and the NLC agreed to establish a Minimum Wage Negotiation Committee and begin its work immediately, they failed to reach a consensus on when the implementation in question should take effect.
The memorandum explicitly acknowledged the disagreement over the effective date, leaving the matter open for further negotiations.
The national minimum wage became a major point of discussion in 2024 when the Federal Government and organised labour negotiated an increase in the statutory monthly minimum wage from ₦30,000 to ₦70,000. The new rate was subsequently enacted into law through the National Minimum Wage Act.
However, the latest memorandum does not provide details of the specific proposal being considered in the new discussions or indicate when the negotiations are expected to conclude.
The unresolved issue comes as workers continue to face pressure from inflation and rising household expenses, which have weakened their purchasing power.
Government Approves Payment of Peculiar Allowance Arrears
The Federal Government also approved the payment of outstanding peculiar allowance arrears, with the entitlement taking effect from May 1, 2026.
Under the agreement, payment will begin in November and be spread across three equal monthly instalments.
The memorandum confirmed the approval but did not disclose the total amount involved, the number of beneficiaries or the specific amount individual workers are expected to receive.
The arrangement represents another financial intervention agreed upon by the government and organised labour, although its full impact will depend on the implementation process.
Health Workers to Receive 19 Months of Outstanding Allowances
The meeting also addressed unpaid allowances owed to health workers in the public service.
The Federal Government agreed that 19 months of outstanding allowance arrears would be settled over three months, beginning in December 2026.
However, the memorandum did not disclose the total financial value of the arrears or specify the dates on which individual payments would be made.
The agreement comes against the background of longstanding concerns about remuneration and working conditions in Nigeria’s health sector, where disputes over salaries, allowances and the implementation of previous agreements have periodically generated industrial tensions.
CONHESS Adjustment Awaits Cost Assessment
On the proposed adjustment to the Consolidated Health Salary Structure (CONHESS), which applies to eligible health professionals in the public service, the National Salaries, Incomes and Wages Commission (NSIWC) committed to completing an updated assessment of the financial implications within three weeks.
The assessment is expected to provide the information required by the Presidential Committee on Salaries to consider the proposed adjustment.
The memorandum indicates that a final decision has not yet been reached, as the commission must first complete its review of the associated costs.
The outcome of the assessment is therefore expected to guide the next stage of deliberations on the proposed salary structure adjustment.
Agricultural Officers’ Hazard Allowances Under Verification
The government also discussed outstanding hazard allowances for agricultural officers.
According to the memorandum, the Federal Ministry of Agriculture and Food Security had submitted the list of eligible beneficiaries and the estimated financial implications to the NSIWC for verification.
The verification exercise is expected to be completed within two weeks. Following the review, the commission is to issue a template to guide implementation.
The payment process remains at the verification stage, meaning disbursement will depend on the completion of the exercise and the release of the necessary implementation guidelines.
The memorandum did not state how many agricultural officers would benefit from the arrangement or the total amount earmarked for the payments.
Tax Relief Proposal Referred to National Executive Council
Tax relief for workers was another issue discussed at the conciliation meeting.
The parties agreed to refer the matter to the National Executive Council (NEC) for further consideration because of its statutory implications.
However, the memorandum did not identify the specific tax measures being proposed or provide a timeline for the NEC’s consideration of the issue.
Tax relief has featured in broader discussions about workers’ disposable income as households struggle with the cost of transportation, food, housing and other essential needs.
For organised labour, tax-related measures form part of the wider effort to improve workers’ purchasing power and reduce the impact of rising living costs.
The referral means the proposal remains subject to further consideration rather than constituting an approved tax relief package.
Government Urges States and Local Councils to Participate
The memorandum also called on state and local governments to participate in the intervention process, noting their responsibilities for the welfare of workers within their respective public services.
It urged the two tiers of government to support the implementation of the agreed measures and encouraged unions to continue pressing for their fulfilment.
The call highlights the importance of cooperation among the different levels of government in addressing public-sector workers’ welfare concerns.
The parties further agreed to reconvene after one month to assess progress on implementing the resolutions.
The planned review is expected to examine the transport allowance, payment of peculiar allowance arrears and progress on other outstanding issues covered by the agreement.
Implementation Will Determine Impact on Workers
The latest conciliation meeting has produced several commitments intended to address public servants’ financial concerns, including the six-month transport allowance, payment of outstanding peculiar allowances and the settlement of health workers’ arrears.
Nevertheless, key matters remain unresolved or subject to additional administrative steps. These include the effective date for implementing the national minimum wage, the proposed CONHESS adjustment, verification of agricultural officers’ hazard allowances and consideration of tax relief.
The agreement provides a framework for continued engagement between the Federal Government and the NLC, but the practical benefits for workers will depend on the timely implementation of the approved interventions and the resolution of outstanding demands.
The one-month review agreed upon by both parties is expected to provide an opportunity to evaluate progress and determine whether further action is required.
