The Federal Government’s planned transport allowance for public service workers, estimated at ₦465 billion, has triggered fresh disagreement with organised labour, as the Trade Union Congress of Nigeria (TUC) rejects the temporary relief and demands an immediate increase in workers’ salaries.

The Federal Government approved a monthly transport intervention of ₦70,000 for six months, beginning in November 2026, following a conciliation meeting with the leadership of the Nigeria Labour Congress (NLC) in Abuja on Tuesday, October 27.

The agreement was reached amid mounting pressure from organised labour over the rising cost of living, workers’ welfare, outstanding allowances and the implementation of minimum wage arrangements.

However, the TUC said the proposed intervention would not adequately address the economic challenges facing Nigerian workers, insisting that a permanent salary increase would provide more dependable relief than temporary payments.

In a statement issued on Wednesday, October 28, by its President, Festus Osifo, and Secretary-General, Nuhu Toro, the congress said it had previously written to the Federal Government demanding an immediate review of workers’ salaries in response to worsening economic hardship.

The TUC maintained that the government did not need to wait for negotiations over the national minimum wage before increasing workers’ pay, arguing that there was no legal ceiling preventing employers from paying salaries above the statutory minimum.

The congress proposed that the Federal Government could raise the salary of the lowest-paid worker to ₦300,000 monthly from the current ₦70,000 minimum wage, alongside appropriate adjustments for other salary grades.

According to the union, temporary wage awards are neither sustainable nor far-reaching enough to address the financial pressures facing workers, particularly as transportation, food, healthcare and other essential expenses continue to weigh on household budgets.

The TUC also questioned the reliability of temporary relief arrangements, citing what it described as incomplete implementation of the wage award agreed upon by the government and organised labour in October 2023.

It alleged that some workers were still owed one or two months of payments, while others did not receive the allowance at all. The union further claimed that some beneficiaries experienced irregular payment intervals and had to repeatedly demand their entitlements.

The congress also argued that many state workers and people employed in the informal sector had not benefited from comparable wage awards.

“How do we go back to the same wage award that never benefited all workers? How can workers be expected to trust fresh promises when previous obligations remain outstanding?” the TUC asked.

The union insisted that salary increases, rather than temporary allowances, would provide a more consistent means of improving workers’ purchasing power.

The Federal Government’s transport intervention is scheduled to run for six months, with eligible beneficiaries expected to receive ₦420,000 in total over the period at the approved monthly rate of ₦70,000. However, the memorandum of understanding did not provide a detailed breakdown of the estimated overall cost of ₦465 billion or specify the final number of beneficiaries.

The agreement also did not fully clarify the administrative arrangements for payment or establish that every state and local government had approved the intervention for its workers.

Although the Federal Government and the NLC agreed on the transport support, they failed to reach consensus on the effective date for implementing the national minimum wage arrangements currently under discussion. Both parties agreed to constitute a Minimum Wage Negotiation Committee and commence meetings immediately.

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

It also agreed to settle 19 months of outstanding allowances owed to health workers within three months, starting in December 2026.

On the proposed adjustment of the Consolidated Health Salary Structure (CONHESS), the National Salaries, Incomes and Wages Commission is expected to complete an updated assessment of the cost implications within three weeks to enable the Presidential Committee on Salaries to consider the matter.

The TUC, however, accused the Federal Government of failing to honour a separate agreement concerning health workers under the Joint Health Sector Unions (JOHESU).

According to the congress, health workers suspended their industrial action in good faith after an agreement was reached with the government, but the promised CONHESS adjustment remained unimplemented seven months later.

The union demanded immediate implementation of the agreement, a clear timetable, appropriate budgetary provisions and consultations with the affected unions.

It warned that continued delays in fulfilling agreements could undermine confidence in collective bargaining and deepen tensions between workers and the government.

The government and the NLC also agreed that the issue of tax relief for workers would be referred to the National Executive Council for consideration. Meanwhile, the proposed hazard allowances for agricultural officers remain subject to verification of beneficiaries and associated costs.

The memorandum further urged state and local governments to participate in the intervention process and encouraged unions to press for implementation within their respective jurisdictions. The parties agreed to reconvene after one month to review progress.

The TUC said the economic crisis extends beyond federal public servants to state and local government employees, pensioners, private-sector workers and people in the informal economy.

It called on governments at all levels to introduce measurable measures to reduce the cost of essential goods and services, ensure timely payment of salaries and pensions, protect jobs and improve conditions for vulnerable Nigerians.

The congress did not announce an immediate nationwide strike in its statement, but said it was awaiting the outcome of its scheduled engagement with the Federal Government before determining its next course of action.

The latest disagreement highlights the continuing divide over how best to address workers’ welfare: the Federal Government and the NLC have agreed to a temporary transport intervention, while the TUC insists that permanent salary increases and the fulfilment of outstanding agreements are necessary to deliver more reliable relief.