₦246bn allocation for NEDC not for salaries alone – Budget office

The Budget Office of the Federation has dismissed claims that the North East Development Commission operates a ₦246 billion salaries budget, describing the assertion as misleading and based on a misunderstanding of the federal budgeting process.

According to a statement issued on Thursday, the Director General of the Budget Office, Tanimu Yakubu, clarified that the ₦246.77 billion reflected against the NEDC in the federal budget is not earmarked solely for personnel costs but represents a statutory lump-sum allocation presented at an aggregate level.

He said, “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 explained that allocations for statutory and quasi-statutory bodies are often presented in bulk under the Medium-Term Expenditure Framework, especially at the initial stages of budget preparation.

“Contrary to claims circulating in the public domain, the ₦246.77 billion reflected against the NEDC in the budget is not a salaries-only allocation. It is a statutory lump-sum provision, initially presented at an aggregate level, consistent with established budget preparation practices for statutory and quasi-statutory bodies under the Medium-Term Expenditure Framework,” he said.

Yakubu noted that where agencies have not submitted detailed internal economic breakdowns at the point of budget upload, figures may temporarily appear under the Personnel Cost heading as a technical placeholder.

“The suggestion that ₦244 billion of this allocation is earmarked solely for personnel costs is factually incorrect. During budget preparation, where agencies do not submit complete internal economic breakdowns at the point of upload, 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 capital expenditure, the Budget Office DG said the ₦2.70 billion cited by commentators reflects a National Assembly-approved rephrasing of capital votes in the 2025 budget, with about 70 per cent deferred to the 2026 fiscal year.

“This was a legislative decision on the timing and sequencing of appropriations and does not indicate an absence of development projects,” Yakubu stated.

He added that project schedules attached to the budget show ongoing interventions across the North East, including agricultural support programmes, food security initiatives, orphanage construction and rehabilitation, reconstruction of internally displaced persons’ camps, borehole projects, security logistics, and constituency-level developments.

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

Yakubu further stressed that personnel costs in a development commission are normal and necessary to deliver its mandate.

“They fund engineers, procurement officers, project managers, monitoring and evaluation teams, and fiduciary oversight required to design, supervise, and deliver projects effectively. No development institution executes its mandate without institutional capacity,” he explained.

He also assured that the NEDC operates within established 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,” it said.

Yakubu cautioned against the spread of misinformation, noting that claims portraying the NEDC as an agency existing only to pay salaries are unfounded.

“Misinformation does not serve accountability, and ignorance of the budget process should not be weaponised as public commentary,” the statement added.