Nigerian government approves transport allowance

The Nigerian government has approved a monthly transportation allowance for public sector workers, set to begin in November 2026. This allowance is part of a broader effort to address rising living costs and wage demands across the country.

Allowance details and duration

The transportation allowance amounts to 70,000 nairas, roughly equivalent to 52 US dollars, and is intended to be provided for six months. This measure is included in a memorandum of understanding (MoU) that followed a conciliation meeting between government officials and representatives of the Nigeria Labour Congress (NLC).

Context of labor negotiations

The meeting is part of ongoing discussions between the federal government and the NLC to address workers' concerns, particularly regarding wages, transport costs, and unpaid allowances. These talks come after weeks of threats from labor unions to stage strikes over rising living costs and fuel prices.

Rising cost of living and reforms

The current tensions are linked to the increase in the cost of living since the government introduced economic reforms in 2023, including the removal of fuel subsidies. These changes have led to higher prices for essential goods and services, prompting the government to implement various relief measures.

Government relief measures

To ease the impact of these reforms, the government has introduced temporary reductions in gasoline prices at Nigerian National Petroleum Company Limited (NNPC) stations and a national cash transfer program. This program provides monthly payments of 25,000 nairas to vulnerable households.

Additional social initiatives

In July 2026, President Bola Tinubu launched several social programs totaling about 3.05 billion dollars. These programs aim to reduce poverty, improve access to healthcare and education, and support affected communities.

Settlement of outstanding payments

The MoU also outlines the payment of arrears for a specific allowance, to be distributed in three monthly installments starting in November 2026. Additionally, it includes the settlement of nineteen months of unpaid allowances for health workers, to be paid over three months beginning in December 2026.

Next steps and ongoing discussions

The agreement includes a provision for the government and the NLC to meet again one month after the signing to evaluate the implementation of the MoU. Meanwhile, discussions on the national minimum wage continue to be a key topic of negotiation.