The Federal Government has dismissed as misleading claims that the North East Development Commission (NEDC) operates a ₦246 billion salaries budget, describing the allegation as a gross misrepresentation of the federal budgeting process.
It noted that the ₦246.77 billion reflected against the NEDC in the federal budget is not a salaries-only allocation but a statutory lump-sum provision prepared in line with established budgetary practices under the Medium-Term Expenditure Framework (MTEF).
In a firm clarification issued by the Budget Office of the Federation on Thursday and signed by the Director General, Tanimu Yakubu, it explained that the figure was presented at an aggregate level, as is standard for statutory and quasi-statutory agencies, and that suggestions that as much as ₦244 billion was earmarked exclusively for personnel costs are “factually incorrect.”
According to the office, during budget preparation, when agencies are yet to submit full internal economic breakdowns, allocations may temporarily appear under the Personnel Cost heading as a technical placeholder.
This, it noted, is a recognised procedural convention pending detailed submissions, legislative reviews and reallocations during budget execution.
“This technical presentation must not be confused with spending intent,” the government stressed.
Addressing claims about low capital expenditure, the Budget Office clarified that the ₦2.70 billion cited by critics reflects a National Assembly-approved rephrasing of capital votes in the 2025 budget, with about 70 per cent of the allocation rolled into the 2026 fiscal year.
“This was a legislative decision on the timing and sequencing of appropriations and does not suggest the absence of development projects,” it said.
The office pointed out that project schedules accompanying the same budget documents clearly show ongoing and planned interventions across the North East, including agricultural support programmes, food security initiatives, orphanage construction and rehabilitation, reconstruction of internally displaced persons (IDP) camps, borehole projects, security logistics support and constituency-level development projects.
“Selective reading of a single budget line while ignoring accompanying schedules is not analysis — it is distortion,” the statement added.
On personnel costs, the government noted that staffing expenses in a development commission are both normal and necessary, covering engineers, procurement officers, project managers, monitoring and evaluation teams, and other professionals required to design, supervise and deliver projects effectively.
“No development institution can execute its mandate without institutional capacity,” the Budget Office said.
It further emphasised that the NEDC operates under strict accountability frameworks, including the MTEF, annual Appropriation Acts, National Assembly oversight, quarterly budget performance reports and statutory audits.
While welcoming public scrutiny, the office cautioned that such engagement must be informed by a proper understanding of the budget system.
“The claim that the NEDC exists merely to pay salaries is unfounded,” the statement said. “It conflates technical budget presentation with actual expenditure intent, ignores legislative appropriation dynamics and disregards project-level evidence already embedded in official documents.”
The Budget Office urged commentators and members of the public to engage responsibly with fiscal information, warning that misinformation undermines accountability and that ignorance of the budget process should not be weaponised as public commentary.
