N246bn Commission’s Allocation Not Solely For Salaries

The Budget Office of the Federation has dismissed claims that the North East Development Commission (NEDC) is running a N246 billion salaries budget, describing the allegation as misleading and based on a misreading of Nigeria’s budgeting framework.

In a statement issued yesterday, the Budget Office clarified that the N246.77 billion reflected against the commission in the federal budget is a statutory lump-sum allocation, not a personnel-only provision.

According to the office, such aggregate figures are consistent with established budget preparation practices for statutory and quasi-statutory agencies under the Medium-Term Expenditure Framework (MTEF).

“It is incorrect to suggest that N244 billion of this allocation is earmarked for salaries,” the statement asserted, adding that allocations may temporarily appear under the personnel cost heading during budget preparations as a technical placeholder where agencies have yet to submit full internal economic breakdowns.

The Budget Office explained that this presentation is a recognised procedural convention pending detailed submissions, legislative adjustments and approved reallocations during budget execution, and should not be confused with spending intent.

On capital expenditure, the office noted that the ₦2.70 billion cited in some public commentaries reflects a rephrasing of capital votes approved by the National Assembly in the 2025 budget, with about 70 per cent rolled into the 2026 fiscal year.

It stressed that the decision was legislative and related to the timing and sequencing of appropriations, not an indication that the commission lacked development projects.

The Budget Office further stated that project schedules attached to the same budget documents show ongoing interventions across the North East, including agricultural support programmes, food security initiatives, reconstruction of internally displaced persons’ camps, borehole projects, security logistics, orphanage construction and constituency-level development projects.

“Selective reading of a single budget line while ignoring accompanying schedules is not analysis; it is a distortion,” the statement said.

Addressing concerns about personnel costs, the office said such expenditures are neither unusual nor improper for a development commission, noting that engineers, project managers, procurement officers, monitoring and evaluation teams and fiduciary oversight staff are essential for effective project delivery.

The Budget Office added that the NEDC operates within established accountability frameworks, including the MTEF, annual Appropriation Acts, National Assembly oversight, quarterly budget performance reports and statutory audits.