The Federal Government’s six-month transport allowance for its workers could cost an estimated N465.7bn if all 1.1 million employee records on its payroll system qualify for the payment.
The economists have, however, called for sustainable measures to reduce commuting costs and ease pressure on household budgets.
The government approved a monthly allowance of N70,000 ($50) for public servants beginning in November, following a conciliation meeting with the Nigeria Labour Congress, the country’s biggest workers association, in Abuja on Tuesday. The agreement provides for the payment across all levels for six months, although it did not specify the number of beneficiaries or the total amount budgeted for the intervention.
The Trade Union Congress of Nigeria, however, rejected the N70,000 wage award to cushion transportation expenses.
The TUC demanded, instead, an immediate salary increase for workers and the implementation of outstanding agreements with health workers under the Joint Health Sector Unions.
based on 1,108,800 employee records held on the Integrated Personnel and Payroll Information System as of July 2026, puts the potential monthly cost at N77.6bn and the six-month expenditure at N465.7bn.
The calculation assumes that every employee record represents an eligible beneficiary. The actual cost will depend on the verified number of workers covered by the agreement and the government’s final payment arrangements.