Head of Civil Service Says It Did Not Approve 40 Percent Allowance for Federal Workers

Published on 14 May 2026 at 12:51

Reported by: Oahimire Omone Precious | Edited by: Oravbiere Osayomore Promise.

The Office of the Head of the Civil Service of the Federation (OHCSF) has issued a clarification that it neither approved nor formally conveyed the much‑discussed 40 percent peculiar allowance for federal civil servants, contrary to widespread reports that suggested otherwise. In a statement released on Thursday, May 14, 2026, the OHCSF explained that the statutory responsibility for issuing and communicating such circulars rests solely with the National Salaries, Incomes and Wages Commission (NSIWC). The circular in question was actually issued by the NSIWC on April 23, 2026, and the OHCSF has not been involved in its approval or transmission to labour unions.

The clarification came after days of speculation and excitement among federal civil servants who had interpreted the NSIWC circular as a final approval from the government. Labour unions had hailed the allowance as a major victory, and the Joint National Public Service Negotiating Council (JNPSNC) had reportedly begun discussions on implementation. However, the Head of Service’s office has now stepped in to correct what it describes as a misunderstanding regarding the approval chain.

In a statement signed by the Director of Press and Public Relations, Eno Olotu, the OHCSF disclosed that a meeting convened by the Head of the Civil Service of the Federation on Tuesday, May 12, 2026, was strictly an interventionist and conciliatory engagement. The meeting was aimed at facilitating dialogue between organised labour under its jurisdiction and the NSIWC, in order to promote mutual understanding and avert any breakdown in labour relations within the Federal Civil Service. The OHCSF emphasised that its role was purely that of a mediator, not an approver.

The 40 percent peculiar allowance has been a subject of intense negotiation between the government and labour unions for months. The allowance is designed to compensate federal civil servants for the unique demands and challenges of their roles, particularly in the face of rising inflation and economic hardship. Labour unions had argued that the allowance was long overdue and that failure to approve it could lead to industrial action. The NSIWC’s circular of April 23 raised hopes that the government had finally acceded to labour’s demands.

However, the OHCSF’s statement suggests that the matter is far from settled. By clarifying that it has neither approved nor conveyed the allowance, the Head of Service’s office has effectively thrown the ball back into the court of the NSIWC and the labour unions. The statement also implies that the NSIWC may have acted unilaterally, or that its circular was misinterpreted. Labour leaders are likely to be dismayed by this development, as they had already begun mobilising their members for the implementation of the allowance.

The peculiar allowance is separate from the minimum wage and other cost‑of‑living adjustments. It is intended to address specific distortions in the civil service salary structure, where certain categories of workers have unique responsibilities that are not adequately compensated by the basic salary. The percentage increase has been a sticking point, with the government initially offering a lower figure and labour insisting on 40 percent. The NSIWC’s circular seemed to signal a breakthrough, but the OHCSF’s intervention has now cast doubt on whether the allowance will be implemented as proposed.

The OHCSF’s statement also sought to reassure labour unions that the Head of Service remains committed to fostering peaceful labour relations and sustaining collaborative engagement with all stakeholders. “The OHCSF remains committed to fostering peaceful labour relations and sustaining collaborative engagement with all stakeholders towards the continued advancement of industrial harmony in the Federal Civil Service,” the statement read. However, the disclaimer that the office has not approved the allowance is likely to anger labour leaders who feel that the government is backtracking.

Reactions to the clarification have been swift. The JNPSNC has not yet issued an official response, but union sources have indicated that they are studying the statement and may call for an emergency meeting. Some labour leaders have privately expressed frustration, accusing the government of bureaucratic buck‑passing. “We were told the allowance had been approved. Now we are being told that the approval came from the wrong agency. This is unacceptable,” a senior labour official said on condition of anonymity.

The NSIWC has also not commented on the OHCSF’s statement, leaving a vacuum of confusion. It remains unclear whether the NSIWC’s circular was issued with proper authority or whether it was a draft that was prematurely made public. The OHCSF’s insistence that the circular was issued by the NSIWC but that the OHCSF did not approve or convey it suggests a lack of coordination between the two government bodies.

For federal civil servants, the clarification is a bitter pill to swallow. Many had already started budgeting for the extra income, expecting the allowance to be paid retroactively. The confusion over approval has now thrown the entire process into uncertainty, and the risk of industrial action may have increased rather than diminished. Labour unions had previously threatened to go on strike if the allowance was not approved, and the latest twist may push them to make good on that threat.

The Head of Service’s office has urged all parties to remain calm and continue dialogue. The meeting of May 12 was described as a step in the right direction, and further engagements are expected. However, until a clear approval is communicated through the proper channels, the 40 percent peculiar allowance remains a promise, not a reality.

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