After the FG–Labour Deal: What Workers Need to Know

The Federal Government and the Nigeria Labour Congress (NLC) have reached an agreement on measures to ease the impact of rising living costs on workers. The agreement was reached at a conciliation meeting held at the Federal Ministry of Labour and Employment in Abuja on Tuesday, October 27, 2026, following earlier discussions on October 22.

The main agreement is the payment of a monthly transport allowance of ₦70,000 to eligible federal government workers for six months, starting in November 2026. If paid in full, each eligible worker will receive ₦420,000 over the six months.

However, the agreement does not specify the full list of workers who will benefit or how eligibility will be determined. It also does not state the exact payment date in November or whether the allowance will be paid alongside monthly salaries. State and local governments have been urged to participate in the scheme, but it has not been confirmed that every state or local government has agreed to make the payments. Workers should therefore seek clarification from their respective employers.

The government has also agreed to pay outstanding arrears of a special allowance dating back to May 1, 2026. Payments are expected to begin in November and be made in three equal instalments. However, the total amount owed, the sum each worker will receive and the full list of eligible beneficiaries have not been disclosed.

On the minimum wage, both parties agreed to establish a negotiation committee that will begin work immediately. However, they did not agree on a date for implementing a new arrangement. This means the issue remains unresolved.

Health workers are expected to receive 19 months of outstanding allowance payments within three months, beginning in December 2026. The government will also continue reviewing the Consolidated Health Salary Structure (CONHESS). The National Salaries, Incomes and Wages Commission will update the cost estimates within three weeks to enable the presidential committee on salaries to make a decision.

The parties also discussed the hazard allowance for agricultural workers. The Ministry of Agriculture has submitted a list of beneficiaries to the salaries commission for verification, with the exercise expected to be completed within two weeks. However, no date has been announced for the commencement of payments.

Labour also demanded a reduction in petrol prices and taxes, but no agreement was reached on these requests. The transport allowance was the only measure agreed upon specifically to ease the economic pressure on workers. The tax issue will be referred to the NLC’s National Executive Council for further discussion.

The government and labour representatives are expected to meet again in one month to review implementation of the agreement. In the meantime, workers should confirm their eligibility and payment arrangements with their payroll departments, as several important details remain unclear. They should also distinguish between measures formally agreed upon and proposals that are still under discussion.