…Seek Acceleration Of CNG Mass Transit Projects, Broader Economic Measures

LAGOS – Barrister Emeka Iheonu, a La­gos-based lawyer and public com­mentator, has noted that the Fed­eral Government’s approval of a N70,000 monthly transport allow­ance for public service workers from November 2026 to April 2027 represents a temporary compro­mise to stall impending industri­al action.

He observed that the decision has nonetheless generated disagreement among unionists.

“It has exposed a massive rift be­tween the Executive and Organised Labour, alongside a growing gap in how public versus informal sector workers survive Nigeria’s deep cost-of-living crisis,” he said.

Analyzing the matter, he said: “The allowance was agreed upon during a conciliation meeting be­tween the Federal Government (FG) and the Nigeria Labour Congress (NLC).

“The organised labour is, how­ever, dissatisfied. The Trade Union Congress (TUC) completely rejected the allowance, calling it an unsus­tainable bandage on a gaping wound.

“They are demanding a perma­nent salary restructure that raises the baseline of the lowest-paid worker to N300,000 monthly.

“Unions have pointed out that previous temporary ‘wage awards’ were either ignored by state governments or left un­paid for several months, mak­ing fresh promises hard to trust.

“Options for the FG include fast-tracking the Minimum Wage Negotiation Commit­tee, enforcing and subsidising Compressed Natural Gas (CNG) Mass Transit, pressuring State and Local Governments to rep­licate benefits, and offering tar­geted direct tax relief.

“Workers in the private sector, including SMEs, trad­ers, etc., who make up 80% of Nigeria’s workforce, have been surviving the current cost of living crisis by taking on sec­ondary, remote, or flexible in­formal roles (e.g., social media vending, micro-logistics, or dig­ital services) to stitch together multiple income streams that adjust to inflation faster than fixed corporate salaries.

“Informal traders, market associations, and transport unions heavily rely on tradi­tional, self-organised Esusu or thrift cooperatives. Private individuals are forced to ration movements rigidly.

“Survival tactics include shifting to remote or hybrid work where private employers permit, carpooling, choosing cheaper public alternatives (like train routes, Keke-NAPEP lines or even using bicycles over private cabs), and cutting out non-essential travel entirely.

“In the absence of a robust state social security net, the most vulnerable citizens are dependent on institutional pal­liatives from religious bodies (churches/mosques offering free meals or subsidised clin­ics), diaspora remittances from family members abroad, and community-led mutual aid.”

For Barrister Olalekan Fes­tus Ojo, a Lagos human rights lawyer, the N70,000 monthly transport allowance, running for six months from November 2026, is a welcome but inade­quate gesture.

Ojo, the Managing Partner of Platinum & Taylor Hill LP, one of Nigeria’s leading law firms, said: “It totals N420,000 per worker, then ends.

“The current minimum wage is also N70,000, so this doubles a poor worker’s income for half a year before dropping them back to where they start­ed.

“Labour wants permanent change, with the TUC propos­ing N300,000 for the lowest-paid federal workers and the NLC pressing for a far higher mini­mum wage.

“The Federal Government’s options are to begin the agreed minimum wage renegotiation immediately, with a published timetable, and to consider tax relief and a phased increase tied to inflation. It must also pay all arrears promptly.

He added: “For workers outside the public payroll, sur­vival depends on targeted cash transfers, cheap credit for small traders and artisans, and low­er transport and energy costs. Government cannot protect only those it employs.”

ANOTHER TEMPORARY MEASURE

Barrister Kenneth Udeze, the National Chairman of Action Alliance, stated: “The N70,000 allowance is a palliative, not a solution.

“Against union demands for a living wage review and full CNG mass transit rollout, N70,000 is modest and inflation will quickly erode it if tempo­rary.”

Udeze suggested some op­tions for the Federal Govern­ment. According to him, the government should make it a bridge to a structured wage award, not a replacement.

He also suggested that the government should fast-track CNG buses and rail to cut trans­port costs structurally. This is even as he advised it to also pro­vide targeted cash transfer for informal workers.

Udeze stressed: “For non-public payroll workers who form the majority, survival depends on direct intervention – subsidized transport, mar­ket-level price control on food/ energy, and support for SMEs. Otherwise palliative for civil servants widens inequality.”

Dr. Victor Mathew, a secu­rity expert and human rights advocate expressed disappoint­ment that the NLC views the proposed N70,000 temporary transport support as huge for its members despite the reaction of the Trade Union Congress (TUC).

Mathew, the Executive Di­rector, Kingdom Advocacy Net­work (KAN) and CEO, Nextstep Security Organisation, stated: “This so-called transport al­lowance, to me, is cosmetic in nature and more importantly, politically motivated, aimed at getting votes from the benefi­ciaries.

“The hardship that has ne­cessitated this intervention arises from the fuel subsidy removal.

“The removal of fuel subsi­dy announcement on the day of inauguration by the Presi­dent without proper consulta­tions with anyone and concrete thought-out remedies, plunged over 70 percent of Nigerians to be living below the poverty line and made many multidimen­sionally poor.

“This N70,000 is a political gimmick and tool to get votes. Other Nigerians who do not work for the Federal Govern­ment will go to the same mar­ket as the N70,000 beneficiaries, thereby making them very vul­nerable to the higher inflation likely to occur with this trans­port allowance.

“I will advise the Federal Government to be more inten­tional and pragmatic in finding ways by which their interven­tions will benefit the greater majority.

“The State and local govern­ments are getting very fat FAAC allocations. They too have to provide palliatives to the very vulnerable in the society.

“The CNG penetration rate is very shallow. The government at all levels, as a matter of policy, should get involved in the CNG project because this will impact positively on those who are in the private sector. Survival in Nigeria today is a Herculean task.

“Another veritable avenue which will impact positively on a large pool of Nigerians is the provision of CNG buses which can charge lower and cheaper fares, thereby dropping the high cost of commuting from one place to another.

“The government should, through a robust fiscal and monetary policy, bring down the inflationary rate, lift embargo on essential goods.”

GOING BEYOND TRANSPORT RELIEFS

Professor John Ebhomien, an economist and financial expert, said the proposed tem­porary N70,000 transport allow­ance is a stop-gap, not a solution — and unions know it.

Ebhomien, a former Con­sultant to the United Nations Office on Project Services and a chieftain of the All Progres­sives Congress (APC), explain­ing further, noted that Labour is asking for a living wage that restores purchasing power lost to fuel subsidy removal and in­flation, plus sustainable relief like CNG buses, housing, and food cost reduction.

He stressed that a temporary allowance helps for between three and six months, adding that such allowance is taxable, not pensionable, and disappears while hardship remains.

Ebhomien added: “That is why unions are skeptical — they fear it replaces, rather than complements deeper re­forms.

The first option he suggested is for the Federal Government to blend short and long term, which is to keep the transport allowance as immediate palli­ative, while accelerating CNG mass transit projects.

This, according to him, will cut transport costs by 50% per­manently.

Ebhomien also suggested a food-focused intervention. On this, he suggested that the Fed­eral Government should part­ner with states for direct market intervention and farm inputs to crash food prices.

Another option he urged the Federal, state and local govern­ments to consider is the wage table review.

On this, he urged the Federal Government to conclude a new minimum wage tied to inflation triggers, not ad-hoc allowances.

On workers outside public payroll, who he said are on the real majority, Ebhomien noted that about 85% of Nigerians are informal: traders, artisans, farmers, okada riders, private sector casual staff,who have no allowances.

For them, he urged the Federal Government to sup­port emergence zero-interest micro-credit through market associations, not bureaucracy.

He said there should be free and cheap mass transit avail­able to all, not just civil servants.

He called for availability of energy for SMEs, such as subsidised mini-grids for mar­kets and clusters, stressing, “If palliatives stop at government payroll, hardship continues for the masses.”

Baba Aye, a veteran activ­ist and labour expert, said the proposed transport allowance cannot be a substitute for a na­tional minimum wage that is a living wage.

Baba Aye, a Co-Convener, Co­alition for Revolution (CORE), stated: “The Nigeria Labour Congress (NLC) has equally stated this, further informing that negotiations for a new min­imum wage are starting already.

“Unfortunately, it is not even only those in the private sector or informal economy that are not explicitly included among those who will automatically get this N70,000 transport al­lowance.

“It is only those on the Feder­al Government’s payroll. States and local governments as well as private sector employers were only encouraged to follow suit.

“This further underscores the centrality of the struggle for our liberation as working-class people, but even to win such meagre concessions as this.”

A POLITICAL GAMBIT

On his part, Chief Martin Onovo, an Oil and Gas sector stakeholder and a seasoned politician has said that he sup­ports a relief for the Nigerian workers, but not when they are being deceived by the Federal Government.

Reacting to the proposed temporary N70,000 transport allowance for workers vis a vis the demands of union leaders, Onovo, the 2015 presidential candidate of the National Con­science Party (NCP), said the proposed transport allowance is deceitful, unpatriotic and an ad hoc proposal.

He also maintained that the so-called transport allowance for federal workers, which is meant to run for only six months, was arrived at as a result of the desperation of President Bola Tinubu’s failed administration.

Speaking exclusively with Sunday Independent at the weekend, Onovo, currently Head, Movement for Progres­sive Change (MPC), noted that the Tinubu regime is currently owing many federal workers, while several workers’ unions have threatened to embark on nationwide strike.

Recall that the Federal Gov­ernment recently announced the payment of N70, transport allowance for workers for six months vis a vis the demands of union leaders.

Onovo said: “It is deceitful because the timing and dura­tion prove the intent. It is sched­uled to cover the pre-election pe­riod and the pre-inauguration period.

“So, it is clearly designed to deceive federal workers prior to the elections.

“Jagaban Tinubu and his party, widely regarded as the worst regime since Amalgama­tion in 1914, have faced categori­cal rejection across the country during this campaign season.

“This allowance is a desper­ate ploy to buy the sympathy of Nigerian federal workers.

“It is unpatriotic because it serves no national interest. It is not driven by the welfare of workers or the economy, but solely by the partisan agenda of the ruling party.

“It is reckless and desperate because it is extra-budgetary, which has become the norm for this lawless regime. The IMF itself has reported over N8 trillion in extra-budgetary spending by the Tinubu regime.

“The desperation of this re­gime knows no bounds. From illegal extra-budgetary spend­ing, to unleashing violence on opposition supporters, to wea­ponising the Police against the opposition, to planting AI-gen­erated fake voters on the INEC register, to this short-term de­ceitful transport allowance, to sharing vehicles bought with slush funds to its paid attack dogs – the pattern is clear.

“Nevertheless, nothing will save Jagaban Tinubu from total defeat in the 2027 elections.

“The inflationary impact of the allowance has not been appropriately assessed. It is very important because, the allowance may make the same workers poorer if inflation over­takes it.

“In 1982, minimum wage was N125/month, at N0.75/$. That was $166/month. This 2026, min­imum wage is N70,000/month, at N1,400/$. That is $50/month.

“So, it is clear that in real value, minimum wage has been decreasing in Nigeria due to bad governance that causes hyper-inflation.

“If we also check it with Pur­chasing Power comparison, we will confirm the same trend.

“Other workers will have to negotiate possible reliefs with their employers in their own particular circumstances.”

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