Federal Government's Transport Allowance Costs N465.7bn

The Federal Government's initiative to provide a six-month transport allowance for its workers is estimated to cost N465.7bn, assuming all 1.1 million employees on its payroll qualify for the payment. The monthly allowance of N70,000 ($50) will begin in November, following a conciliation meeting with the Nigeria Labour Congress in Abuja.

The Trade Union Congress of Nigeria rejected this allowance, advocating for an immediate salary increase and the fulfillment of outstanding agreements with health workers under the Joint Health Sector Unions. An analysis by The PUNCH indicates that the potential monthly cost could reach N77.6bn, with the total expenditure over six months at N465.7bn, contingent on the verified number of eligible workers.

This intervention occurs amid rising living costs, with petrol prices at N1,369 per litre and inflation rates affecting household budgets. Economists have welcomed the allowance but stress the need for additional measures to address transport costs and improve purchasing power.