Hardship: FG Approves ₦70,000 Monthly Transport Allowance for Workers for Six Months

The Federal Government has approved a monthly transport allowance of ₦70,000 for eligible workers for six months as part of measures to cushion the impact of rising transportation costs and the prevailing economic hardship in the country.

The allowance is expected to commence in November 2026 and run for six months, providing temporary financial relief to workers struggling with the rising cost of commuting and other essential expenses.

The approval comes amid growing concerns over the high cost of living, with organised labour demanding urgent government intervention to address the effects of rising petrol prices on workers’ purchasing power.

According to a report by Naija News published on Tuesday, October 27, the government also approved the payment of outstanding peculiar allowance arrears, effective from May 1, 2026. The arrears are to be paid in three equal monthly instalments beginning in November.

The decisions were reportedly contained in a memorandum of understanding signed at the end of a meeting involving government representatives and organised labour.

Those who signed the agreement included the Director-General of Budget, Timi Yakubu; Nigeria Labour Congress (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.

The transport allowance is expected to provide temporary relief to eligible workers as transportation expenses continue to put pressure on household incomes.

However, the intervention comes against the backdrop of broader disagreements between the Federal Government and organised labour over workers’ welfare, petrol prices, tax relief and the timing of negotiations for a new national minimum wage.

The NLC and the Trade Union Congress (TUC) have been pressing the government to address outstanding demands, including reducing petrol prices to levels prevailing when the current ₦70,000 minimum wage was enacted in 2024.

Labour has also called for immediate wage support and the commencement of negotiations for a new minimum wage ahead of the government’s proposed June 2027 review.

The current national minimum wage of ₦70,000 was signed into law by President Bola Tinubu in July 2024, following negotiations between the government, organised labour and employers.

Despite the wage increase, labour unions have maintained that rising prices of food, transportation, housing and other basic necessities continue to erode workers’ earnings.

The newly approved transport allowance is therefore expected to offer short-term assistance, although its impact will depend on implementation and the categories of workers covered by the agreement.

Further details on the implementation arrangements and eligibility are expected to clarify how the intervention will be administered.