The Federal Government has approved a monthly transport allowance of N70,000 for public service workers across all levels for six months, beginning in November 2026, to cushion the impact of rising living costs.

The approval was announced in a memorandum of understanding (MoU) issued after a conciliation meeting between government representatives and leaders of the Nigeria Labour Congress (NLC) in Abuja on Tuesday.

The MoU was signed by Tanimu Yakubu, Director-General of the Budget Office; Joe Ajaero, NLC president; Garba Abdul, Permanent Secretary of the Service Welfare Office in the Office of the Head of the Civil Service of the Federation; and Muhammad Dingyadi, Minister of Labour and Employment.

The meeting followed weeks of threats of industrial action by organised labour over rising living costs, workers’ welfare and outstanding agreements.

Under the agreement, the government also approved the payment of outstanding peculiar allowance arrears dating back to May 1, 2026. The arrears will be paid in three equal monthly instalments beginning in November.

However, the parties failed to agree on the effective date for implementing the national minimum wage. They instead agreed to establish a committee to negotiate the matter, with meetings expected to begin immediately.

The MoU also covers outstanding allowances, health workers’ remuneration, tax relief and hazard allowances for agricultural officers.

According to the document, the NLC leadership expressed concern over the Federal Government’s handling of the issues raised during negotiations.

In response, the government said it “fully respects 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 MoU, however, did not specify the exact payment date for the monthly transport allowance or outline the administrative arrangements for its disbursement.

The agreement follows sustained agitation by workers’ unions over the rising cost of living, partly driven by high petrol prices.

On Thursday, the NLC extended its initial two-week ultimatum to the Federal Government until Tuesday, October 27, demanding action on workers’ concerns and warning of possible nationwide industrial action if negotiations failed.

The extension followed a meeting between government representatives and organised labour leaders that ended without a resolution. Benson Upah, the NLC’s acting general secretary, said the meeting was adjourned at the request of the labour minister to allow the government to assemble relevant ministers and heads of departments and agencies for further discussions.

The union is demanding a reduction in petrol prices to 2024 levels, renegotiation of the national minimum wage and implementation of agreed tax relief measures.

Its demands also include implementing the terms of settlement reached with the Joint Health Sector Unions and Assembly of Healthcare Professionals (JOHESU), as well as addressing outstanding issues raised by the Joint Public Sector Negotiating Council (JPSNC).

According to Upah, these outstanding issues include peculiar allowances, wage awards and hazard allowances.

He said the NLC remained committed to dialogue but would not accept indefinite delays.