The Budget Office of the Federation has dismissed as false and misleading claims that the North East Development Commission (NEDC) operates a ₦246 billion salaries budget, insisting that the allegation is based on a misunderstanding of Nigeria’s federal budgeting process.
In a statement issued in Abuja on January 15, 2026, the Director General of the Budget Office, Tanimu Yakubu, described the narrative circulating in the public domain as “inaccurate” and rooted in a misinterpretation of how statutory allocations are presented under the Medium-Term Expenditure Framework (MTEF).
Yakubu explained that the ₦246.77 billion reflected against the NEDC in the budget is “not a salaries-only allocation,” but a statutory lump-sum provision initially presented at an aggregate level, in line with established budget preparation practices for statutory and quasi-statutory agencies.
“The suggestion that ₦244 billion of this allocation is earmarked solely for personnel costs is factually incorrect,” he said.
According to the Budget Office, allocations may temporarily appear under the Personnel Cost heading during budget preparation when agencies have not yet submitted full internal economic breakdowns.
“This is a recognised procedural convention pending detailed submissions, legislative adjustments, and approved reallocations during budget execution,” Yakubu stated, stressing that “this technical presentation must not be confused with spending intent.”
Addressing claims that only ₦2.70 billion was provided for capital expenditure, Yakubu clarified that the figure reflects a National Assembly-approved restructuring of capital votes in the 2025 budget, with about 70 per cent rolled over into the 2026 fiscal year.
“This was a legislative decision on the timing and sequencing of appropriations and does not indicate a lack of development projects,” he said.
He added that project schedules attached to the budget documents clearly show multiple ongoing interventions across the North East, including agricultural support programmes, food security initiatives, construction and rehabilitation of orphanages, reconstruction of internally displaced persons (IDP) camps, borehole projects, security logistics, and constituency-level development initiatives.
“Selective reading of a single budget line while ignoring accompanying schedules is not analysis—it is a distortion,” Yakubu warned.
The Budget Office also defended personnel costs within development commissions, noting that such expenditures are essential for effective project delivery.
“Personnel costs fund engineers, procurement officers, project managers, monitoring and evaluation teams, and fiduciary oversight required to design, supervise, and deliver projects effectively,” the statement said, adding that “no development institution executes its mandate without institutional capacity.”
Yakubu further noted that the NEDC operates within strict accountability frameworks, including the MTEF, annual Appropriation Acts, National Assembly oversight, quarterly budget performance reports, and statutory audits.
“Genuine public scrutiny is welcome and encouraged, but it must be informed by an understanding of how the budget system works,” he said.
He concluded by urging commentators and members of the public to engage responsibly with fiscal information.
“The claim that the NEDC exists merely to pay salaries is unfounded. It conflates technical budget presentation with actual expenditure intent, ignores legislative appropriation dynamics, and disregards project-level evidence already embedded in official documents,” Yakubu said.
“Misinformation does not serve accountability, and ignorance of the budget process should not be weaponised as public commentary.”
