The Federal Government has clarified that the ₦70,000 monthly transport support approved for federal civil servants is temporary financial assistance and does not amount to a salary increase or negotiated wage award.
The Director-General of the Budget Office of the Federation, Tanimu Yakubu, said the payment would help workers cope with rising living costs while the government prepares for discussions on a sustainable minimum wage arrangement.
Under the scheme approved by President Bola Ahmed Tinubu, eligible federal civil servants will receive ₦70,000 every month for six months.
The arrangement will give each beneficiary a total of ₦420,000, separate from existing salaries and allowances.
Yakubu explained that Tinubu approved the intervention without a formal request from organised labour or negotiations under the collective bargaining process involving government, employers and workers.
He said the government introduced the payment to provide immediate relief as rising transport expenses continue to put pressure on workers’ household budgets.
The support is also expected to leave civil servants with more money to meet essential expenses, particularly food and other daily needs.
FG Explains Why ₦70,000 Support Is Not a Salary Increase
Yakubu said inflation and increasing living costs have placed additional financial pressure on Nigerian workers.
He attributed some of the challenges to changes in global energy markets, supply chains and production costs.
According to him, the fixed transport payment would provide significant relief to lower-income workers because it represents a larger portion of their earnings.
However, he stressed that temporary financial support differs from a permanent salary adjustment.
While the transport intervention will last for only six months, a salary increase would create recurring financial obligations for the government.
He explained that permanent wage adjustments require additional funding year after year, alongside other related expenses.
Yakubu said the government must balance immediate support for workers with its ability to meet long-term financial commitments.
He added that the transport allowance applies specifically to federal government employees.
The arrangement does not compel private companies or other employers to introduce similar payments because businesses operate with different financial capacities.
FG Plans Early Minimum Wage Negotiations
On the next national minimum wage review, Yakubu said the existing three-year review arrangement places the exercise in July 2027.
However, he disclosed that the Federal Government had accepted a proposal to begin negotiations before the scheduled review date.
The discussions will involve organised labour, employers and government representatives.
Yakubu said the Budget Office would provide financial analysis to guide the negotiations and help the parties reach an agreement that improves workers’ welfare without creating unsustainable obligations.
He explained that the early discussions would allow stakeholders to consider the country’s financial position while addressing workers’ concerns about earnings and living conditions.
The director-general maintained that the ₦70,000 transport support would address workers’ immediate difficulties, while the forthcoming minimum wage negotiations would focus on their longer-term income and welfare.
He said the government’s objective was to provide relief now and ensure that future wage commitments remain affordable and financially sustainable.