FG: ₦70,000 Monthly Transport Support Not Salary Increase
The Federal Government has clarified that the ₦70,000 monthly transport support approved for federal civil servants is a temporary relief measure and should not be regarded as a salary increase or negotiated wage award.
The Director-General of the Budget Office of the Federation, Tanimu Yakubu, said the intervention was designed to cushion the impact of rising living costs on workers while the government prepares for negotiations on a sustainable minimum wage settlement.
Under the arrangement approved by President Bola Ahmed Tinubu, each eligible federal civil servant will receive ₦70,000 monthly for six months, amounting to ₦420,000 per worker, in addition to existing salaries and allowances.
Yakubu explained that the initiative was approved without a formal request from organised labour or negotiations under the collective bargaining process involving the government, employers and workers.
He said the support was intended to help civil servants cope with increasing transportation expenses and retain more of their earnings to meet essential household needs, particularly food and other necessities.
According to him, workers have continued to face mounting financial pressures due to inflation, influenced partly by developments in global energy markets, supply chains and production costs.
The Budget Office chief noted that the fixed monthly payment would provide relatively greater relief to lower-income workers because it represents a larger proportion of their earnings.
However, he stressed that temporary financial assistance differs significantly from a permanent salary increase in terms of its implications for public expenditure.
Yakubu explained that while the transport support would last for only six months, a salary increase would create recurring financial obligations for the government, alongside other related commitments.
He said the government was seeking to balance the need to provide immediate relief to workers with the responsibility of ensuring that future wage increases remain financially sustainable.
Yakubu added that the transport support was a commitment specifically made to federal government employees and did not automatically require private companies or other employers to introduce similar payments.
He maintained that employers operate under different financial conditions and should assess their individual capacities before taking on additional wage-related expenses.
On the next national minimum wage review, Yakubu said the exercise was scheduled for July 2027 under the existing three-year review cycle.
He, however, disclosed that the Federal Government had accepted a proposal to commence negotiations ahead of the scheduled date.
The forthcoming negotiations are expected to involve organised labour, employers and the government, with the Budget Office providing financial analysis to guide discussions and support the development of an agreement that improves workers’ welfare without imposing unsustainable financial obligations.
Yakubu reiterated that the transport support was intended to address workers’ immediate financial difficulties, while the planned minimum wage negotiations would focus on their longer-term earnings and welfare.
He said the government remained committed to providing timely assistance to workers while ensuring that future wage commitments could be sustained and met as they fall due.
