The Federal Government has approved an allowance of N70,000 per month for public servants for six months starting from November 2026 to strengthen the resilience of the populace to the rising cost of living.

The approval was part of the agreements rached during a meeting between the Nigeria Labour Congress (NLC) and the Federal Government in Abuja on Tuesday, 27th October, 2026 where the organized labour demanded a better workers' welfare.

The agreement also includes the payment of arrears of peculiar allowances, which were due from 1st May 2026, in three equal monthly installments starting in November.

The government and labour leaders however, could not agree on the date by which the national minimum wage must be in force, but both sides agreed to set up a Minimum Wage Negotiation Committee and start meetings right away.

The resolutions were in a MOU signed by the NLC President, Joe Ajaero, and the Minister of Labour and Employment, Dr Muhammad Maigari Dingyadi among others.

Speaking to journalists after the meeting, the NLC Assistant Secretary-General, Chris Onyeka, said the meeting was productive, however, not what labour had been expecting.

He said that compromises would have to be made in negotiations and confirmed that the proposed minimum wage committee would include representatives of the government, workers and employers.

On the welfare of health workers, the government pledged to settle 19 months arrears of allowance within 120 days starting from December 2026. It is expected that the National Salaries, Incomes and Wages Commission would be furnished with an evaluation of the cost of the proposed adjustment in the Consolidated Health Salary Structure (CONHESS) within three weeks.

Further discussion was held during the meeting on Hazard Allowances for the Agricultural Officers. The ministry of Agriculture and Food Security had submitted the list of beneficiaries and costs involved to the commission for verification and they expect it to be completed within two weeks, the memorandum said.

On tax relief for workers, the parties agreed to refer the issue to the National Economic Council for consideration, taking into account its legal aspects.

The memorandum also called on the state and local governments to engage in the implementation of the agreed interventions and urged unions to advocate for their implementation.

The current agreement comes after an earlier meeting that was held on October 22, 2026, amidst growing worries about the increasing transportation costs, inflation and declining purchasing power of Nigerian workers.

Both sides agreed to hold a second meeting after a month to review the implementation of the resolutions.

The agreement offers immediate financial relief to the workers via transport allowances and outstanding payments, but a number of outstanding issues, such as the date of the implementation of the minimum wage, adjustment and tax relief for CONHESS remain unresolved.