The federal government’s approval of a ₦70,000 monthly transport allowance for public servants has raised questions about which workers will benefit from the six-month intervention, particularly employees of state governments and those in the informal sector.

The allowance followed a dispute between the Federal Government and the Nigeria Labour Congress (NLC) over workers’ welfare, rising living costs and outstanding labour demands. The two parties reached an agreement at a conciliation meeting in Abuja on Tuesday, October 27, 2026, approving the monthly transport support for six months, beginning in November, to cushion the impact of rising costs.

While the agreement does not set an age limit or minimum years of work experience for beneficiaries, questions remain about the categories of workers eligible for the intervention.

Here are the categories of workers who may not benefit from the allowance.

State Government Workers

The eligibility of state government workers has not been clearly established under the Federal Government’s agreement with the NLC.

Although the memorandum refers to the intervention across all levels, it also urges state governments to key into the arrangement. State employees may therefore need to await further clarification from their respective governments on whether the allowance will be implemented in their jurisdictions.

Local Government Employees

The eligibility of local government employees is also yet to be clearly established.

The agreement calls on local governments to participate in the intervention but does not provide a detailed implementation framework for their workers.

Local government employees should therefore look out for official directives from their respective authorities on whether the allowance will be extended to them.

Private Sector Employees

Employees of private companies are not listed as beneficiaries in the agreement between the Federal Government and the NLC.

The resolution arose from negotiations over public service workers’ welfare and does not establish an obligation for private employers to pay their employees the ₦70,000 monthly allowance.

Informal Sector Workers and the Self-Employed

Traders, artisans, small business owners and other self-employed Nigerians are not expressly identified as beneficiaries in the agreement.

The intervention is a public service-related measure rather than a general cash payment for all Nigerians affected by rising transport costs. (Leadership)