Labour Divided Over ₦70,000 Transport Palliative as Unions Demand ₦500,000 Minimum Wage

According to a report by The Guardian Nigeria on Thursday, October 29, 2026, the Trade Union Congress of Nigeria (TUC) has rejected the Federal Government’s proposed ₦70,000 monthly transport allowance for workers, insisting that substantial salary increases are necessary to cushion the effects of rising living costs.

The congress argued that temporary financial assistance cannot provide a lasting solution to the economic challenges facing Nigerian workers, particularly amid rising petrol prices, inflation and the declining purchasing power of the naira.

However, the National Secretary of the Joint National Public Service Negotiating Council (JNPSNC), Gbenga Olowoyo, has welcomed the proposed transport support, describing it as a positive outcome of negotiations between organised labour and the Federal Government.

Despite welcoming the intervention, Olowoyo maintained that labour’s demand for a ₦500,000 minimum wage remained in place.

The differing positions have highlighted disagreements within organised labour over the government’s proposed intervention, with unions continuing to push for better remuneration and improved working conditions.

In a statement signed by its President, Festus Osifo, and Secretary-General, Nuhu Toro, the TUC called on the Federal Government to increase workers’ salaries immediately rather than wait for another round of minimum wage negotiations.

The congress described temporary wage awards as inadequate and unsustainable, arguing that workers require meaningful salary adjustments to cope with the increasing cost of basic goods and services.

It also questioned the government’s commitment to existing labour agreements, citing outstanding obligations relating to the 2023 wage award negotiated with organised labour.

“How can workers be expected to trust fresh promises when previous obligations remain outstanding?” the congress asked.

The TUC maintained that there was no legal barrier preventing the Federal Government from increasing workers’ salaries beyond the statutory minimum wage.

According to the congress, some state governments have already introduced minimum wages above ₦100,000, demonstrating that higher remuneration is possible where governments demonstrate the necessary commitment.

The union consequently proposed that the Federal Government immediately raise the salaries of its lowest-paid workers to ₦300,000, with corresponding adjustments for other salary grades.

It explained that the national minimum wage represents the lowest legally permissible remuneration for eligible workers and does not prevent employers or governments from paying higher salaries.

The TUC said it formally communicated its demands to the Federal Government in a letter dated October 8, 2026, following a meeting of its National Administrative Council in Abuja.

It also urged federal, state and local governments to implement practical measures to reduce the cost of essential goods and services, ensure timely payment of salaries and pensions, protect jobs and address exploitative labour practices.

In contrast to the TUC’s position, Olowoyo welcomed the proposed ₦70,000 monthly transport allowance, describing the outcome of the negotiations with the Federal Government as encouraging.

He spoke during an interview on Arise News following a meeting between government representatives and labour leaders that lasted more than six hours.

The discussions focused on workers’ welfare and possible interventions to reduce the impact of rising petrol prices and transportation costs.

According to Olowoyo, the government agreed to provide workers with ₦70,000 monthly in transport assistance for six months, beginning in November 2026.

He expressed optimism that the intervention would be implemented as agreed, adding that the outcome reflected the government’s willingness to address workers’ concerns.

“I think with what happened today, the negotiation that lasted over six hours and with the outcome of the meeting, I think, it is a good omen,” Olowoyo said.

He explained that the proposed assistance was intended to benefit workers at different levels, including those at the grassroots, as transportation expenses continue to place pressure on household budgets.

However, Olowoyo stressed that welcoming the transport allowance did not mean organised labour had abandoned its demand for a ₦500,000 minimum wage.

“The template of ₦500,000 is still subsisting. At the same time, if government is able to dance around ₦500,000, we would be alright to support the President. So, we are not going to be rigid, but reasonable,” he stated.

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