The Nigerian government's approval of a N70,000 monthly transport allowance for public service workers from November 2026 to April 2027 has been met with skepticism by experts. Barrister Emeka Iheonu, a Lagos-based lawyer and public commentator, noted that the decision represents a temporary compromise to stall impending industrial action. However, he observed that the allowance has generated disagreement among unionists, exposing a massive rift between the Executive and Organised Labour.
The allowance was agreed upon during a conciliation meeting between the Federal Government and the Nigeria Labour Congress (NLC). However, the Trade Union Congress (TUC) has completely rejected the allowance, calling it an unsustainable bandage on a gaping wound. The TUC is demanding a permanent salary restructure that raises the baseline of the lowest-paid worker to N300,000 monthly. Unions have pointed out that previous temporary 'wage awards' were either ignored by state governments or left unpaid for several months.
Experts suggest that the government should consider broader economic measures to address the cost-of-living crisis. Options include fast-tracking the Minimum Wage Negotiation Committee, enforcing and subsidizing Compressed Natural Gas (CNG) Mass Transit, pressuring State and Local Governments to replicate benefits, and offering targeted direct tax relief. Barrister Olalekan Festus Ojo, a Lagos human rights lawyer, noted that the N70,000 monthly transport allowance is a welcome but inadequate gesture.
The current minimum wage is also N70,000, so this doubles a poor worker's income for half a year before dropping them back to where they started. Labour wants permanent change, with the TUC proposing N300,000 for the lowest-paid federal workers and the NLC pressing for a far higher minimum wage. The Federal Government's options are to begin the agreed minimum wage renegotiation immediately, with a published timetable, and to consider tax relief and a phased increase tied to inflation.
Workers in the private sector, including SMEs, traders, and others, who make up 80% of Nigeria's workforce, have been surviving the current cost of living crisis by taking on secondary, remote, or flexible informal roles. Informal traders, market associations, and transport unions heavily rely on traditional, self-organized Esusu or thrift cooperatives. Private individuals are forced to ration movements rigidly, with survival tactics including shifting to remote or hybrid work, carpooling, and cutting out non-essential travel entirely.
In the absence of a robust state social security net, the most vulnerable citizens are dependent on institutional palliatives from religious bodies and diaspora remittances from family members abroad. Experts stress that the government should make the transport allowance a bridge to a structured wage award, not a replacement. They also suggest that the government should fast-track CNG buses and rail to cut transport costs structurally and provide targeted cash transfers for informal workers.
Critics argue that the N70,000 allowance is a temporary measure that will quickly be eroded by inflation. Dr. Victor Mathew, a security expert and human rights advocate, expressed disappointment that the NLC views the proposed N70,000 temporary transport support as huge for its members. He advised the Federal Government to be more intentional and pragmatic in finding ways to benefit the greater majority, including providing CNG buses and implementing robust fiscal and monetary policies.
Key points
- The Nigerian government's N70,000 transport allowance for public service workers has been deemed insufficient to address the country's cost-of-living crisis.
- Experts suggest that the government should consider broader economic measures, including fast-tracking the Minimum Wage Negotiation Committee and enforcing CNG Mass Transit.
- The allowance has generated disagreement among unionists, with the TUC demanding a permanent salary restructure that raises the baseline of the lowest-paid worker to N300,000 monthly.
