Federal health workers across Nigeria are on the verge of the largest allowance upgrade in over two decades, with a comprehensive review recommending 15–20% increases in hardship and isolation payments, potentially costing the government up to ₦330 billion annually.
The far-reaching recommendations, contained in a newly released seven-page report, aim to address chronic staffing shortages in remote and underserved areas, reduce high turnover rates, and modernize outdated compensation structures.
Key Highlights of the Proposed Overhaul:
15–20% Rise in Hardship and Isolation Allowances
Workers in the most remote regions will receive the highest boosts (up to 20%), with increases scaled according to community isolation levels and length of service.
The new rates will apply to doctors, nurses, pharmacists, dentists, and other allied health professionals.
New Specialty and Retention Bonuses
Fresh incentives include mental health and emergency care premiums, plus long-service retention bonuses for those staying beyond five years in hard-to-staff locations.
Previously excluded federal health staff in Veterans Affairs and Correctional Service facilities will now qualify.
Annual Cost: ₦247.5–330 Billion
The Treasury Board projects the full package will add between ₦247.5 billion and ₦330 billion yearly to the federal payroll — an investment expected to be partly offset by a 25% drop in recruitment, relocation, and overtime expenses due to improved retention.
Equity and Modernization Reforms
An immediate gender pay-equity audit of all allowances, full digitization of claims (slashing processing times from 90–120 days to under 14 days), and the scrapping of archaic “spousal accompaniment” rules that disproportionately affected female workers.
Implementation Timeline
Treasury Board has until January 19, 2026, to respond. Major health-sector unions have already signalled they will demand retroactive payments to April 1, 2025, if the package is approved. Rollout could begin as early as April 2026 through supplementary estimates.
The review was prompted by persistent advocacy from health unions and alarming staffing gaps, some northern and rural health facilities are functioning at only 40–50% capacity, while physician posts in indigenous and remote communities have experienced annual turnover rates exceeding 30%.
If implemented, the reforms would mark a decisive step toward stabilizing Nigeria’s federal health workforce and ensuring equitable care delivery in the country’s most challenging regions.
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