FG: ₦70,000 monthly transport allowance is not salary increase

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By Daily Review Online

The Federal Government has clarified that the ₦70,000 monthly transport support approved for public servants is a temporary intervention to cushion the impact of rising living costs and not an increase in their salaries.

The clarification follows an agreement between the Federal Government and the Nigeria Labour Congress (NLC) at a conciliation meeting held in Abuja on Tuesday, October 27, 2026.

Under the agreement, the transport allowance will be paid monthly for six months, beginning in November 2026, as part of efforts to address workers’ welfare concerns amid rising transportation costs and other economic pressures.

The intervention will run for six months, although the agreement did not specify the exact dates or administrative arrangements for disbursement.

Beyond the transport support, the government also agreed to commence payment of outstanding peculiar allowance arrears in November. The arrears, approved with effect from May 1, 2026, will be paid in three equal monthly instalments.

The agreement further provides for the settlement of 19 months of outstanding allowances owed to health workers within three months, beginning in December 2026.

On the proposed adjustment to the Consolidated Health Salary Structure (CONHESS), the National Salaries, Incomes and Wages Commission is expected to complete its assessment of the financial implications within three weeks to enable the Presidential Committee on Salaries to consider the matter.

The meeting also addressed hazard allowances for agricultural officers, with the relevant beneficiary list and financial requirements undergoing verification.

The question of tax relief for workers was referred for further consideration because of its statutory implications.

However, the government and organised labour failed to reach an agreement on the effective date for implementing a new national minimum wage arrangement.

Both parties agreed to constitute a Minimum Wage Negotiation Committee immediately to continue discussions on the outstanding issues.

Speaking after the meeting, the NLC Assistant Secretary-General, Chris Onyeka, described the discussions as productive but said the outcome fell short of the union’s expectations.

He acknowledged that negotiations involved compromises, noting that neither side could expect to secure all its demands.

The agreement also urged state and local governments to participate in the intervention process and encouraged labour unions to press for the implementation of the resolutions.

The Federal Government and the NLC are expected to reconvene after one month to review progress on the agreed measures.

The transport allowance is expected to provide temporary relief for eligible public servants, while discussions on minimum wage implementation and other outstanding workers’ welfare demands continue.

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