The Trade Union Congress (TUC) has spoken about the pressure that rising living costs place on workers and their families. These concerns deserve attention. When earnings lose their purchasing power, the strain affects households, journeys to work and the working day itself.
President Bola Ahmed Tinubu approved monthly transport support of ₦70,000 for Federal Government civil servants across the board for six months. Each civil servant covered by the approval will receive a total of ₦420,000 over that period, in addition to their existing remuneration.
This is temporary support to ease the cost of living. It is not a negotiated wage award or a salary review.
The President initiated this specific payment without a request from organised labour or a proposal through the collective bargaining process involving workers and employers, including the Federal Government. Its purpose is to provide immediate relief while discussions on wages continue.
The support will put more purchasing power into workers’ hands, helping them meet transport costs and leaving more of their earnings available for food and other household needs. It responds to the hardship caused by rising costs, including pressures transmitted through global energy markets, supply chains and production costs, which ultimately affect the prices families pay every day.
The amount is the same across the board. For civil servants on lower salaries, it represents a larger proportion of their earnings and will therefore provide proportionately greater relief.
The payment and a permanent salary increase carry different financial commitments for the public purse. The transport support runs for six months, giving the government a defined funding obligation over that period. A salary review, however, creates expenditure commitments that extend into future years and requires provision for recurring costs and related obligations.
This explains why the government can provide relief now while working with labour and other employers towards a lasting wage settlement. The responsibility is to address urgent needs while ensuring that every continuing commitment can be honoured. Workers should be able to count on agreed payments when they fall due.
By easing some of the worries workers face as they travel from home to work, the intervention is also intended to support productivity. It is a Federal Government commitment to its civil servants, funded through its own fiscal arrangements. It does not imply that other employers should adopt the same measure. Employers face different financial circumstances, and many may have limited capacity for additional expenditure. Decisions on similar support must therefore rest with individual employers, taking into account their resources, existing obligations and ability to sustain employment.
The next national minimum wage review is due in July 2027 under the three-year review cycle. The Federal Government has accepted the proposal to begin negotiations ahead of the due date. There is no need to wait until July to begin the process.
Organised labour and employers will participate fully in the negotiations alongside the government. The Budget Office of the Federation will provide the fiscal analysis needed to help the parties reach an agreement that improves workers’ welfare and can be funded reliably.
The transport support is a bridge through the present hardship. The wage negotiations must address the longer road ahead. Both efforts should proceed with respect for workers, an understanding of their daily needs and careful management of the resources entrusted to the government.
Tanimu Yakubu
Director-General
Budget Office of the Federation
