Politico-economic implications of N70,000 transport allowance for Federal workers

The administration of President Bola Ahmed Tinubu, on Tuesday, October 27, 2026, approved the sum of N70,000 for workers on the payroll of the federal government.

The money was approved following an agreement the government had with the organised labour in Abuja. For the government, it said the reason for such allowance was to help cushion the effects of skyrocketing transport fares in the country.

But for PDP chieftain, Adetokunbo Pearse, President Tinubu’s N70,000 monthly transportation allowance for Federal Government workers for 6 months is a political gimmick, just like the 30-day discount on the price of petrol.

‘Firstly, Federal Government employees make a negligible percentage of Nigeria’s workforce. Secondly, a federal government worker who lives in Ikorodu and works at Apapa dockyard, for instance, spends about N6,000 per day to and from work. That is 150,000 naira per month.’ He said that President Tinubu’s N70,000 transportation allowance was an insult and a travesty.

For some Nigerians, as the 2027 election draws nearer, Tinubu appears desperate to impress prospective voters. Unfortunately for him, these gimmicks he keeps bringing up expose him more every day as a desperado, a politician whose only target is election victory.

For Martin Onovo, a Petrochemical Engineer, this transportation allowance is a case of ‘Too little. Too late’, and nothing will make Nigerians vote for Tinubu in 2027.

‘It is clearly a deceitful, unpatriotic and unlawful act of desperation by the ad hoc Tinubu regime. The regime is currently owing many federal workers, and some workers’ unions have threatened strikes. It is deceitful because the timing and duration of the transport allowance confirm that it is obviously intended to deceive federal workers for the period of the elections. Jagaban Tinubu and his ruling party, the worst regime since 1914, have seen categorical rejection in this campaign season all over the country. So, this is a desperate move to deceive Nigerian workers. It is unpatriotic because it is not in the best interest of the country but for the partisan agenda of the ruling party.’

He said that the N70,000 was reckless and unlawful because it is extra-budgetary, as has become normalised with the lawless regime.

‘You may refer to the IMF report that the Tinubu regime made over N8 trillion in extra-budgetary spending. The desperation of the Tinubu regime has no boundaries. From extra-budgetary spending to violence against opposition party supporters, to the misuse of the Police against opposition supporters, to AI-generated fake voters on the INEC voters register, to this deceitful, short-term transport allowance, to the sharing of vehicles procured with slush funds to their paid attack dogs, etc. However, nothing will save Jagaban Tinubu from a complete defeat at the 2027 elections,’ he said.

Recall that on July 29, 2024, President Tinubu signed the National Minimum Wage (Amendment) Act, increasing it from N30,000 to N70,000. It is now law; any employer paying less is committing an offence punishable by jail.

Of course, after subsidy removal in May 2023, petrol price jumped from N190 to over N600-N1000; today it is in the neighbourhood of N1400; transport, food, housing all doubled. N30,000 could no longer take workers home; inflation and Naira devaluation pushed the cost of living beyond the reach of the common man. Inflation hit 34percent; the purchasing power of N30k dropped to less than 30percent of its value. FG had to adjust to current economic realities as at 2024, but no more.

Another reason for new minimum wage then was pressure from Organised Labour: NLC and TUC demanding up to N250,000 to N615,000 initially. After months of negotiation and threat of nationwide strike, both sides compromised and N70,000 was signed.

Another milestone then was that the old law reviewed minimum wage after every 5 years but it was agreed that minimum wage should now be reviewed every three years, so that wages would keep pace with economic changes. This, of course, was to protect decent work standard as the government said that no Nigerian worker, whether public or private sector, should earn below living standard, and that private employment agencies must ensure contracts reflect N70,000 as minimum.

Implication for Nigerian workers

The new minimum wage law shows that the least paid worker must go home with N70,000 after deductions. Other salary levels above minimum were adjusted upward, Level 1-6 workers got higher percentage increase.

Following the crippling economic hardship in the country, workers in Nigeria have started another round of agitation. Workers in some states argue that even though they are paid N70,000 minimum wage, a state like Imo State is paying N104,000; Lagos N85,000, so they use it as a basis for agitation for further increase.

However, from all economic indices, even the federal government now admits N70,000 is not sustainable. Chief of Staff, Gbajabiamila said recently, ‘The N70,000 wage, which was a milestone in 2024, must be honestly reassessed against today’s realities, while NLC says workers are under immense pressure.

The matter is indeed complicated because even though there is agitation for further increase there is also the issue of non-compliance by Private Sector. Many private companies, schools, security firms still pay N30,000-N50,000 even when the federal government has warned that defaulters risk jail term. But like everything Nigeria enforcement remains weak.

There is also state implementation gap. Some states delayed implementation until late 2024/2025, and Local Governments still struggling.

Inflation has also eaten deep into workers’ salaries, as they claim transport alone now takes 40-50percent of N70,000. Petrol, food, and rent have eroded the gain.

New negotiation starting

FG has agreed to set up new Minimum Wage Tripartite Committee. NLC on its part is asking for N300,000 minimum, while FG just approved temporary N70,000 transport allowance for six months to calm tension.

However, if truth must be told, N70,000 was a 133percent increase and a major win in 2024, but with today’s cost of living, it is now seen as survival wage, not living wage. That is why FG itself has signaled fresh review before the 3-year deadline of 2027.

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