The Trade Union Congress of Nigeria has rejected the Federal Government’s proposed monthly transport allowance of 70,000 Naira for public service workers, insisting that temporary financial assistance will not adequately address the worsening cost of living. The rejection was announced on Wednesday, October 28, barely 24 hours after the government reached an agreement with the Nigeria Labour Congress to introduce the payment for six months, beginning in November 2026. In a statement jointly signed by TUC President Festus Osifo and Secretary General Nuhu Toro, the union demanded immediate salary increases and the implementation of outstanding agreements with workers. The development has exposed differences between Nigeria’s two major labour organisations over how the government should respond to rising transportation expenses, inflation and declining household purchasing power.
The transport allowance was announced following a conciliation meeting between Federal Government representatives and the NLC in Abuja on Tuesday, October 27. The agreement provides for eligible federal public servants across salary grades to receive 70,000 Naira monthly for six months, amounting to 420,000 Naira per beneficiary if all instalments are paid. The memorandum of understanding was signed by NLC President Joe Ajaero, Minister of Labour and Employment Muhammad Maigari Dingyadi, Budget Office Director-General Tanimu Yakubu and senior civil service officials. In addition to the transport payment, the agreement provides for the settlement of certain outstanding allowances and the resumption of minimum wage discussions. However, the government has not publicly confirmed the final number of eligible beneficiaries or a comprehensive payment schedule.
NLC President Joe Ajaero signed the transport allowance agreement with Federal Government representatives following negotiations in Abuja.
The TUC argued that government employees needed an immediate and sustainable salary adjustment rather than a temporary wage award that would expire after six months. The congress maintained that increasing regular salaries would provide predictable income and allow workers to plan their household expenses more effectively. It also challenged the suggestion that a salary increase must await the conclusion of fresh national minimum wage negotiations. According to the union, the government has the authority to improve public servants’ remuneration independently of a nationwide minimum wage review. Osifo reaffirmed that position during an appearance on Channels Television’s Politics Today, explaining that salary increases and minimum wage negotiations were separate issues that could be addressed without delaying immediate assistance to workers.
The TUC proposed that the Federal Government should consider increasing the remuneration of its lowest-paid workers from the existing 70,000 Naira national minimum wage to approximately 300,000 Naira, with corresponding adjustments across higher salary grades. The union cited the decisions of some state governments to introduce minimum wages above 100,000 Naira as evidence that public authorities could improve remuneration beyond the national minimum. However, the proposed increase has not been approved by the Federal Government and does not represent a negotiated wage settlement. Its implementation would require substantial financial commitments, including consideration of the federal workforce, available revenue and the continuing cost of maintaining the higher salary structure. The union nevertheless maintained that permanent pay adjustments would provide broader and more dependable relief than temporary transport support.
The union also questioned whether the government could implement the new allowance consistently, citing difficulties associated with earlier wage support programmes. Osifo referred to the temporary wage award introduced in 2023 following the removal of the petrol subsidy, alleging that some eligible workers did not receive their complete payments. The TUC argued that these unresolved experiences had weakened confidence in short-term interventions and created uncertainty about whether another temporary payment would reach all intended beneficiaries. The congress had communicated its preference for salary increases in a letter to the Federal Government dated October 8, 2026, before the latest NLC agreement was announced. According to the union, subsequent discussions with government officials did not resolve its concerns about the effectiveness of temporary wage awards.
Another major demand concerns the implementation of an outstanding agreement with the Joint Health Sector Unions (JOHESU) over adjustments to the Consolidated Health Salary Structure. The TUC accused the Federal Government of failing to fulfil commitments reached during negotiations that resulted in the suspension of industrial action by health workers. Osifo said the agreement had remained unimplemented for approximately seven months, despite the unions’ decision to suspend their protest in good faith. The congress demanded a clear implementation timetable, appropriate budgetary provisions and the settlement of unresolved salary matters. It warned that repeated delays in honouring negotiated agreements could undermine confidence in collective bargaining between government institutions and organised labour.
The controversy has also extended to retired workers, with the Nigeria Union of Pensioners criticising its exclusion from the proposed transport allowance. The pensioners argued that retirees face similar economic difficulties, including rising food prices, transportation expenses and healthcare costs, but would not benefit directly from the intervention negotiated for public servants. The union accused the Federal Government and NLC leadership of overlooking the financial challenges confronting older Nigerians who depend on pensions for their daily needs. The TUC similarly called for wider economic measures addressing the difficulties faced by workers in state and local governments, private sector employees, informal workers and pensioners. These concerns have broadened the debate from salary support for federal employees to questions about the reach and fairness of government relief policies.
The financial implications of the proposed allowance have also attracted public attention. An estimate published on October 29 suggested that the six-month intervention could cost approximately 465.7 billion Naira if all 1.1 million employee records on the Federal Government’s payroll system qualify. However, that figure is a projected expenditure based on assumed eligibility rather than an officially confirmed budget. The government has not disclosed how many employees will ultimately receive the payment or the precise funding arrangements. Some economists have argued that reducing transportation costs through improved public transport systems, stronger domestic energy supply and broader economic reforms could provide more lasting benefits than direct cash payments alone. Others recognise that temporary income support may still help workers meet immediate financial obligations while wider reforms are being implemented.
The disagreement comes against the background of Nigeria’s economic reforms since May 2023, when the Federal Government removed the petrol subsidy and introduced other measures intended to stabilise public finances. The resulting increases in fuel and transportation costs contributed to widespread concerns about household spending, prompting negotiations between government authorities and organised labour. In 2024, Nigeria introduced a national minimum wage of 70,000 Naira, replacing the previous 30,000 Naira minimum. However, continuing economic pressures have led workers’ representatives to question whether the revised minimum wage remains sufficient to meet basic living expenses. The latest controversy therefore reflects a broader disagreement over whether the government should prioritise temporary allowances, permanent wage increases or economic measures designed to reduce the cost of essential goods and services.
As of October 29, 2026, the Federal Government’s six-month transport allowance remains scheduled to commence in November under the agreement reached with the NLC, while the TUC continues to oppose the temporary payment arrangement. The congress has demanded an immediate salary review, implementation of the outstanding JOHESU agreement and wider relief measures for Nigerians facing economic hardship. No official announcement has confirmed that the TUC’s rejection will suspend the planned allowance, and the union has indicated that it will consider further action after reviewing the outcome of its engagements with government representatives. The next stage will depend on whether the authorities can address the competing demands, establish transparent payment procedures and demonstrate that agreed financial support will reach eligible beneficiaries. For Nigerian workers and pensioners, the continuing debate underscores the need for credible, sustainable and inclusive responses to the rising cost of living.
