KEY POINTS

• Former Vice-President Atiku Abubakar says the Federal Government’s ₦70,000 monthly transport allowance for public service workers will not adequately address rising living costs.
• The six-month allowance is scheduled to begin in November 2026 under an agreement with the Nigeria Labour Congress.
• Atiku questioned why the support excludes private sector workers, traders, small businesses and informal sector workers.
• He called for clear eligibility criteria, published payment dates and resolution of outstanding minimum wage negotiations.
• The Trade Union Congress has also rejected the allowance, demanding higher salaries instead of temporary payments.

MAIN STORY

Former Vice-President Atiku Abubakar has criticised the Federal Government’s ₦70,000 monthly transport allowance for public service workers, arguing that the temporary intervention will not adequately address the rising cost of living affecting households and businesses.

Atiku, the African Democratic Congress (ADC) presidential candidate, made the comments in a statement issued on Wednesday by Phrank Shaibu, director of strategic communication for the ADC presidential campaign council.

The Federal Government announced the six-month allowance in a memorandum of understanding reached with the Nigeria Labour Congress (NLC) on Tuesday, with payments scheduled to begin in November 2026. The agreement followed weeks of labour agitation over rising living costs, petrol prices, workers’ welfare and outstanding agreements.

Atiku said the monthly payment would buy only about 50 litres of petrol at an estimated price of ₦1,400 per litre. He argued that the intervention did not address the wider costs of food, electricity, cooking fuel, rent and other essentials.

“The cost of living crisis reaches beyond transport: energy, food, rent and other essentials affect every part of daily life,” he said.

He also questioned why the allowance was limited to public service workers when private sector employees, traders, small businesses, transport operators and informal sector workers were facing similar cost pressures.

“If public service workers receive N70,000 monthly for transport from November, what happens to private sector workers, traders, small businesses, transport operators and millions without formal jobs?” he asked.

The former vice-president called on the government to clarify who would qualify for the allowance, publish payment dates and resolve outstanding minimum wage negotiations. He maintained that temporary payments would not reverse the effects of the government’s economic policies.

Atiku also criticised the compressed natural gas (CNG) initiative, arguing that it had not delivered the promised reductions in transport costs for Nigerians. He called for a transparently managed production subsidy for petrol refined in Nigeria, saying it could provide relief at the pump.

He further urged the government to address what he described as corruption and leakages rather than place the burden of its policies on citizens.

The Trade Union Congress (TUC) also rejected the transport allowance on Wednesday. Its president, Festus Osifo, and secretary-general, Nuhu Toro, said the government should increase workers’ salaries instead of relying on temporary financial support.

THE ISSUES

The disagreement centres on whether a fixed transport allowance can provide meaningful relief when workers face rising costs across several areas of daily life.

For public service workers, the allowance could provide additional money for commuting, but its value will depend on transport fares, travel distances and the timing of payments. Because the intervention is limited to six months, workers will also need to consider what happens when it ends.

The wider question is whether support for transport costs can keep pace with increases in food, housing, energy and other expenses. Even if the allowance reduces some commuting pressure, it does not directly lower these other costs.

The eligibility question is equally important. Public service workers covered by the agreement may receive support, but workers outside the arrangement could remain exposed to the same economic pressures without equivalent assistance. The government’s eligibility rules and payment arrangements will determine who benefits and how the programme operates in practice.

The TUC’s demand for higher salaries points to a different approach. An allowance provides targeted, temporary support, while a salary increase changes workers’ regular earnings. The two measures have different implications for public spending and workers’ income after the intervention period.

Atiku’s proposed subsidy for locally refined petrol would also require clear details on how the programme would be funded, administered and monitored. Its effect on pump prices would depend on the design of the scheme and whether savings reached consumers.

WHAT’S BEING SAID

“The cost of living crisis reaches beyond transport: energy, food, rent and other essentials affect every part of daily life,” – Atiku Abubakar, former Vice-President.

“If public service workers receive N70,000 monthly for transport from November, what happens to private sector workers, traders, small businesses, transport operators and millions without formal jobs?” – Atiku Abubakar, former Vice-President.

“These rushed announcements smack of political bribery and corruption,” – Atiku Abubakar, former Vice-President.

WHAT’S NEXT

The Federal Government is expected to begin the transport allowance payments in November 2026 under its agreement with the NLC. Clear eligibility criteria, payment schedules and confirmation of the workers covered will be important to implementation.

The TUC’s rejection adds pressure for the government to address its demand for higher salaries. Atiku has also called for outstanding minimum wage negotiations to be resolved.

The impact of the intervention will depend on whether payments reach eligible workers as scheduled and how much relief they provide against transport costs during the six-month period.

BOTTOM LINE

The ₦70,000 transport allowance offers temporary support to public service workers, but opposition from Atiku and the TUC highlights concerns about its duration, coverage and ability to address broader living costs. The central issue is whether the intervention will provide meaningful relief while wider questions about wages and household expenses remain unresolved.