Nigeria agrees transport allowance for federal government workers ahead of Tinubu re-election bid

ABUJA, Oct 28 (Reuters) – Nigeria’s government agreed on Wednesday to pay federal government workers a 70,000 naira ($52) monthly transport allowance for six months as part of a deal with the main labour union, the Nigeria Labour Congress, to ease soaring living costs, officials said.

The deal highlights the political sensitivity of rising prices ahead of President Bola Tinubu’s re-election bid in January.

Ministry of Labour spokesperson Annah Daniel said federal government workers would receive the payout from next month.

The government also pledged to clear outstanding worker benefits, including arrears of a special allowance dating back to May 2026, which it will pay in three monthly instalments starting in November.

The agreement revives talks on a new national minimum wage.

Health workers will receive 19 months of unpaid allowance arrears, with the government pledging to clear the backlog within three months from December 2026, meeting a long-standing union demand.

Additional measures, including tax relief for workers, will be referred to the National Economic Council for consideration, while proposed hazard allowances for agricultural workers are also being reviewed.