The Federal Government has approved a N70,000 monthly transport allowance for public servants for six months, beginning in November, to cushion the impact of rising living costs.

The approval was one of the resolutions reached at a conciliation meeting between the Federal Government and the Nigeria Labour Congress in Abuja on Tuesday, following renewed pressure from organised labour over workers’ welfare, the rising cost of living and outstanding agreements.

The government also approved the payment of outstanding peculiar allowance arrears, effective from May 1, 2026, in three equal monthly instalments beginning in November.

However, the parties failed to agree on the effective date for implementing the national minimum wage, although they agreed to immediately constitute a Minimum Wage Negotiation Committee.

The resolutions were contained in a memorandum of understanding signed at the end of the meeting by the Director-General of Budget, Timi Yakubu; NLC President, Joe Ajaero; the Permanent Secretary, Service Welfare Office, 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 document, 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’, outlined agreements on transport support, outstanding allowances, minimum wage negotiations, health workers’ remuneration, tax relief and hazard allowances for agricultural officers.

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

“It was productive, but not as we had expected,” he said.

Onyeka said negotiations often required compromises, adding that parties could not always achieve all their objectives.

“Sometimes you win some, lose some,” he said.

He clarified that the proposed Minimum Wage Negotiation Committee would be tripartite, comprising representatives of the government, workers and employers.

He also confirmed that the transport allowance would be paid for six months, beginning in November.

The meeting followed an earlier conciliation session held on October 22, 2026, which the Federal Ministry of Labour and Employment convened to address disagreements between the government and organised labour.

The latest resolutions provide for some financial interventions, while several workers’ demands remain subject to further negotiations, administrative verification or decisions by relevant government bodies.

On the transport allowance, the memorandum stated, “That transport intervention of Seventy Thousand Naira (N70,000) commencing from November 2026 would be paid across all levels for a period of six months.”

The document did not specify the exact payment dates or the administrative arrangements for disbursing the allowance.

The agreement comes amid persistent concerns over rising transportation costs and the prices of essential goods following the removal of the petrol subsidy in May 2023, which contributed to increased living costs across the country.

Organised labour has repeatedly called for measures to ease the economic pressure on workers, including lower petrol prices, improved wages and the implementation of outstanding welfare agreements.

The NLC had also expressed concerns about the government’s handling of its demands, prompting the intervention of the Ministry of Labour and Employment.

Addressing the disagreement, the memorandum said the NLC leadership “expressed concern over the Federal Government’s attitude towards the above issues.”

It added that the Federal Government “stated that it fully respect the right of the Congress to advocate for improved working conditions for Nigerian workers, and is genuinely trying to address every aspect of it through a structured intervention.”

The statements reflect continuing differences between the two parties over the pace of addressing workers’ demands, despite their commitment to further negotiations.

On the national minimum wage, the parties agreed to constitute the Minimum Wage Negotiation Committee and commence meetings immediately.

However, the effective date of implementation remained unresolved.

The memorandum stated, “It was agreed that the Minimum Wage Negotiation Committee would be constituted and commence meeting immediately. It should however be noted that there is a disagreement on the effective date of implementation.”

The disagreement leaves a key issue unresolved despite the commitment to begin negotiations without delay.

The national minimum wage became a major issue in 2024 when the Federal Government and organised labour negotiated an increase in the statutory monthly minimum wage from N30,000 to N70,000. The new rate was subsequently enacted into law through the National Minimum Wage Act.

The latest agreement refers to the commencement of discussions and the implementation date of the national minimum wage but provides no further details on the specific proposal under consideration or when the negotiations are expected to conclude.

The NLC has continued to press for improved workers’ welfare as inflation and rising household expenses erode purchasing power. The government, meanwhile, has maintained that interventions must be addressed through structured negotiations and relevant administrative processes.

On peculiar allowances, the government confirmed approval for the payment of outstanding arrears, with disbursement scheduled to begin in November.

The memorandum stated, “The peculiar allowance have been approved by the Federal Government with effective from 1st May 2026. The payment of the arrears would commence in November, 2026 in three equal monthly instalments.”

The peculiar allowance arrears are to be paid in three equal monthly instalments beginning in November, although the memorandum did not specify the total amount involved or provide a breakdown of beneficiaries and individual payments.

For health workers, the government agreed to clear 19 months of outstanding allowance arrears within three months, beginning in December 2026.