ABUJA, Nigeria — October 28, 2026: The Trade Union Congress of Nigeria (TUC) has rejected the Federal Government's proposed ₦70,000 monthly transport allowance for workers, insisting that an immediate and permanent salary increase would provide more meaningful relief amid the country's rising cost of living.
The labour organisation argued that temporary financial assistance would not adequately address the economic difficulties facing Nigerian workers, many of whom continue to struggle with the rising costs of food, transportation, healthcare, housing and other essential needs.
In a statement issued on Wednesday and signed by its President, Festus Osifo, and Secretary-General, Nuhu Toro, the TUC called on the Federal Government to review workers' salaries without waiting for negotiations over a new national minimum wage.
TUC Explains Why It Rejected the ₦70,000 Allowance
The Federal Government announced the proposed transport allowance following a conciliation meeting with the leadership of the Nigeria Labour Congress (NLC) in Abuja on Tuesday, October 27, 2026.
Under the arrangement, the government plans to provide ₦70,000 monthly in transport support for six months, beginning in November 2026.
The intervention is intended to help public servants cope with increasing transportation expenses and the wider cost-of-living crisis.
However, the TUC believes that temporary assistance is not a sustainable solution to the financial difficulties confronting workers.
The congress maintained that workers need improved salaries that can provide dependable income rather than short-term interventions that may expire without resolving their economic challenges.
The organisation also expressed concerns about the implementation of previous wage-support agreements, arguing that some workers did not receive the benefits they were promised.
According to the TUC, the government should prioritise lasting improvements in workers' earnings and demonstrate its commitment to existing agreements.
TUC Proposes ₦300,000 Salary for Lowest-Paid Federal Workers
One of the most significant aspects of the TUC's position is its proposal that the Federal Government could increase the salary of its lowest-paid worker from the current ₦70,000 minimum wage to ₦300,000.
The congress argued that the government does not need to wait for negotiations on a new national minimum wage before increasing workers' salaries.
It pointed to some Nigerian states that have introduced minimum wages exceeding ₦100,000 as an example of how employers can provide higher pay.
The TUC also called for appropriate adjustments across other salary grades to ensure that increases are not restricted to the lowest-paid category.
However, the proposed ₦300,000 figure represents the union's demand, not an approved salary increase by the Federal Government.
Any implementation would require further government decisions and consideration of the financial implications.
Union Questions Implementation of Previous Wage Awards
The TUC's rejection of the proposed allowance is partly based on its concerns about the implementation of an earlier wage award agreed upon by the Federal Government and organised labour in October 2023.
The congress said the previous arrangement was intended to provide temporary relief until a new national minimum wage was agreed upon in 2024.
However, the union alleged that the programme was not implemented consistently across the country.
According to the TUC, some workers remained owed one or two months of payments, while others did not receive the allowance.
It also claimed that some beneficiaries experienced irregular payments rather than receiving the money every month as expected.
The congress further argued that many state governments and workers in the informal sector did not benefit from the previous arrangement.
These concerns have contributed to its reluctance to accept another temporary intervention.
The TUC maintains that a permanent salary increase would provide a more reliable means of improving workers' financial security.
TUC Demands Implementation of Outstanding Health Workers' Agreement
Beyond the transport allowance dispute, the TUC has called on the Federal Government to implement outstanding agreements involving the Joint Health Sector Unions (JOHESU).
The dispute concerns the adjustment of the Consolidated Health Salary Structure (CONHESS), which affects eligible health-sector workers.
According to the TUC, an agreement was reached to address outstanding issues relating to the salary structure, but the union says the adjustment remains unimplemented.
The congress argued that the delay undermines confidence in collective bargaining and creates uncertainty for health workers who have relied on the government's commitments.
It is therefore demanding that the government implement the agreed adjustment, provide a clear timetable and make the necessary budgetary provisions.
The union also urged the authorities to resolve outstanding matters through consultation with the relevant health-sector organisations.
The dispute is important because health workers provide essential services, and unresolved remuneration issues can contribute to industrial tensions within the healthcare system.
Rising Cost of Living Remains a Major Concern
Nigeria's cost-of-living crisis remains central to the disagreement between organised labour and the government.
Workers are facing pressure from the costs of transportation, food, accommodation, electricity, education and healthcare.
For households whose incomes have not kept pace with rising expenses, meeting basic needs has become increasingly difficult.
The TUC argues that temporary allowances alone cannot adequately address these challenges.
Instead, the congress wants governments at the federal, state and local levels to introduce measurable measures that reduce the cost of essential goods and services.
It has also called for the timely payment of salaries and pensions, protection of existing jobs, action against exploitative labour practices and measures to encourage productive economic activities.
The union believes these interventions should benefit not only federal public servants but also state and local government employees, pensioners, private-sector workers and people in the informal economy.
Will the TUC's Decision Lead to a Nationwide Strike?
The TUC's rejection of the proposed transport allowance has raised questions about the possibility of further industrial action.
However, the congress had not announced an immediate nationwide strike in the reports published on October 28, 2026.
Instead, the union indicated that it was awaiting the outcome of further discussions with the Federal Government before deciding on its next steps.
The direction of the dispute will depend partly on whether the government responds to the demand for immediate salary increases and addresses outstanding agreements with affected workers.
If negotiations produce meaningful progress, the parties may be able to resolve some of their differences through dialogue.
However, continued disagreement over workers' salaries and the implementation of existing commitments could prolong tensions between organised labour and the government.
Nigerian workers will therefore be watching for further announcements from the TUC, the Federal Government and other labour organisations.
What the Dispute Means for Nigerian Workers
The disagreement highlights a broader question about how governments should respond to rising living costs.
Temporary allowances can provide immediate assistance, particularly when transportation expenses place pressure on household budgets.
However, permanent salary increases can offer more predictable income over time, provided they are implemented sustainably and paid consistently.
The TUC's position is that workers need lasting improvements in their earnings rather than temporary relief measures that may not reach everyone.
The Federal Government, meanwhile, will need to consider the financial implications of any additional salary commitments alongside its other expenditure obligations.
The outcome could influence future wage negotiations, public-sector labour relations and discussions about the welfare of workers across Nigeria.
Conclusion
The Trade Union Congress of Nigeria has rejected the Federal Government's proposed ₦70,000 monthly transport allowance, demanding immediate salary increases and the implementation of outstanding agreements with health workers.
The congress argues that temporary assistance is insufficient to address the rising cost of living and has proposed increasing the salary of the lowest-paid federal worker to ₦300,000.
It has also called for better protection of workers' incomes, timely payment of salaries and pensions, and measures to reduce the cost of essential goods and services.
Although the government has proposed transport support beginning in November 2026, the TUC's response shows that significant disagreements remain over the most effective way to improve workers' welfare.
The next stage of discussions between the Federal Government and organised labour will be crucial in determining whether the dispute can be resolved and what additional measures may be introduced to support Nigerian workers.
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