Federal Government Approves Transport Allowance
The Federal Government has approved a monthly transport allowance of N70,000 for its workers. The allowance is meant to help public servants with commuting costs.
The government made this decision after a meeting with the Nigeria Labour Congress. The union wants a salary increase instead.
The allowance will be paid for six months. Economists say the government needs to do more to reduce commuting costs and improve household purchasing power.
They suggest investing in subsidised mass transit and reducing the number of days workers need to come to the office. The government's decision comes as fuel prices have risen to N1,369 per litre.
Inflation has moderated, but household expenses remain under pressure. The government needs to find a way to finance the programme without borrowing more money.
The programme will cost an estimated N465.7bn if all 1.1 million employee records on the payroll system qualify for the payment. The actual cost will depend on the verified number of workers covered by the agreement and the government's final payment arrangements.
The proposed intervention is meant to provide immediate relief for workers. However, economists say the government needs to complement the payments with measures to address transport costs and tackle the underlying drivers of economic hardship.
The government should consider investing in reliable and affordable mass transit, including buses and urban rail. This will provide more lasting relief and benefit private-sector workers and self-employed Nigerians.
This story is based on reporting by Punch, written in our own words and checked against that report before publishing. Spotted an error? Report it.
