The Federal Government’s planned six-month transport allowance for public servants could cost an estimated 465.7 billion naira if all employee records on the government’s payroll system qualify for the payment.
The proposed intervention, which is expected to begin in November, provides for a monthly allowance of 70,000 naira per worker for six months.
The agreement followed a conciliation meeting between the Federal Government and the Nigeria Labour Congress, NLC, in Abuja on Tuesday.
However, the agreement did not specify the number of eligible beneficiaries or the total amount earmarked for the programme.
An analysis based on 1,108,800 employee records on the Integrated Personnel and Payroll Information System, IPPIS, as of July 2026, estimates the monthly cost at 77.6 billion naira and the total expenditure over six months at 465.7 billion naira.
The estimate assumes that all employee records represent eligible beneficiaries. The actual cost will depend on the number of workers verified for the payment and the final implementation arrangements.
Meanwhile, the Trade Union Congress of Nigeria, TUC, has rejected the 70,000-naira transport allowance, calling instead for an immediate salary increase and the implementation of outstanding agreements with health workers under the Joint Health Sector Unions.
Economists have also called for sustainable measures to reduce commuting costs and ease the financial burden on households.
The proposed allowance comes amid rising transportation and living costs, with petrol prices at Nigerian National Petroleum Company Limited retail outlets reaching 1,369 naira per litre.
Although Nigeria’s headline inflation rate declined to 14.63 per cent in September from 15.39 per cent in August, food inflation remained elevated at 19.59 per cent year-on-year, according to the National Bureau of Statistics.
The debate over the proposed allowance has therefore renewed calls for more sustainable measures to improve workers’ purchasing power and cushion the impact of rising living costs.
