TUC Rejects FG's ₦70,000 Transport Allowance, Demands Salary Increase

The Trade Union Congress of Nigeria has rejected the Federal Government's proposed ₦70,000 monthly transport allowance for public service workers, calling instead for an immediate salary increase.

The union announced its position on Wednesday in a statement signed by its president, Festus Osifo, and Secretary-General, Nuhu Toro.

The disagreement followed the Federal Government's announcement of a six-month transport allowance for workers after a conciliation meeting with the leadership of the Nigeria Labour Congress in Abuja.

The intervention is scheduled to begin in November 2026. Under the government's arrangement, public service workers are expected to receive ₦70,000 monthly for six months. The government also approved the payment of outstanding peculiar allowance arrears dating back to May 1, 2026, in three equal monthly instalments beginning in November.

However, the TUC argued that temporary payments would not adequately address the financial difficulties confronting workers and the wider population.

The union maintained that the government should increase workers' salaries rather than rely on a time-limited allowance.

According to the TUC, it had previously submitted a demand letter to the Federal Government through the Office of the Secretary to the Government of the Federation on October 8.

The letter outlined the union's concerns about the economic situation and proposed measures to improve workers' welfare.

The congress argued that the government could increase salaries without waiting for another minimum wage negotiation, maintaining that salary adjustments and minimum wage negotiations were separate matters.

It also proposed raising the minimum salary for the lowest-paid federal workers from ₦70,000 to ₦300,000, alongside the applicable consequential adjustments for other salary grades.

The proposed ₦300,000 figure is the TUC's demand and has not been announced as an approved federal salary structure.

The union also called for the implementation of outstanding agreements involving the Joint Health Sector Unions, known as JOHESU. The issue concerns commitments relating to health-sector workers, including adjustments to their salary structure.

The TUC said the government should honour its outstanding obligations and address the concerns raised by workers in the sector.

The union's position adds another point of disagreement to discussions between organised labour and the government over pay and employment conditions.

Transport costs form part of the regular expenses workers face when travelling to and from their workplaces. An increase in fares can reduce the money available for other household needs, including food, accommodation, education and healthcare.

A temporary allowance can provide additional financial support during a specified period, but the TUC argues that a salary increase would offer more consistent relief beyond the six-month arrangement.

The government's proposed intervention followed discussions with the Nigeria Labour Congress, one of the country's major labour organisations.

The TUC's rejection, however, does not automatically cancel the government's announced arrangement. It reflects the congress's position that the intervention does not go far enough to address its demands.

The disagreement also raises questions about the implementation of the allowance, the payment of outstanding arrears and the government's response to the union's salary proposal.

The government and organised labour will need to address these issues through further engagement if they are to reach an agreement on the measures required to improve workers' welfare.

For now, the transport allowance remains a temporary intervention scheduled to commence in November, while the TUC continues to demand a broader review of salaries and the fulfilment of outstanding agreements.