Budget Office says N246 billion NEDC Allocation Not for Salaries

The Budget Office of the Federation has dismissed claims that the NEDC runs a N246 billion salaries budget, saying the assertion is misleading and stems from a misunderstanding of Nigeria’s federal budgeting process.

This clarification was provided in a statement issued on Thursday by the Director-General of the Budget Office, Tanimu Yakubu, in response to public commentary surrounding figures in the 2025 federal budget.

According to the Budget Office, the N246.77 billion allocation linked to the NEDC is a statutory lump-sum provision presented at an aggregate level and not an exclusive personnel cost as alleged.

What the Budget Office is saying 

Yakubu explained that the figure attributed to the NEDC in the budget reflects standard budget presentation practices under the Medium-Term Expenditure Framework (MTEF) for statutory and quasi-statutory agencies.

He noted that such allocations are often captured in bulk at the early stages of budget preparation, with detailed breakdowns—personnel, overheads, and capital expenditure—provided later during budget defence, legislative scrutiny, and implementation.

“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,” he said.

He further clarified that where agencies fail to upload complete internal economic breakdowns at the initial budget stage, allocations may temporarily appear under the Personnel Cost heading as a technical placeholder.

“This is a recognised procedural convention pending detailed submissions, legislative adjustments, and approved reallocations during budget execution. This technical presentation must not be confused with spending intent,” he added.

Addressing concerns about the comparatively small capital expenditure figure of N2.70 billion cited by commentators, Yakubu said the amount reflects a National Assembly-approved adjustment in the 2025 budget.

1. According to him, about 70% of the capital allocation was deferred to the 2026 fiscal year as part of legislative decisions on the timing and sequencing of appropriations.
2. He stressed that this does not suggest the absence of development projects, noting that budget schedules attached to the appropriation clearly outline ongoing and planned interventions across the North East.
3. These include agricultural and food security programmes, reconstruction of internally displaced persons (IDP) camps, rehabilitation of orphanages, borehole and water supply projects, security logistics support, and constituency-level initiatives.

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

Why this matters 

The clarification highlights ongoing public confusion around how federal budgets are structured and interpreted, particularly for statutory agencies with large development mandates.

Yakubu emphasised that personnel costs are a necessary part of any development institution, funding engineers, procurement officers, project managers, monitoring and evaluation teams, and fiduciary oversight functions required for effective project delivery.

While welcoming public scrutiny, the Budget Office cautioned that misinformation undermines informed debate and accountability.

What you should know 

The NEDC was established to coordinate reconstruction, stabilisation, and development efforts in Nigeria’s North East following years of insurgency and humanitarian crises.

Statutory agencies are often presented as lump-sum allocations at early budget stages, with granular details emerging during legislative review and execution.

President Bola Tinubu, on December 19, 2025 presented the 2026 budget to the National Assembly with a N23.85 trillion deficit.

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