Budget Office explains NEDC funding amid ₦246bn salary controversy

The Budget Office of the Federation has dismissed claims circulating in the public space that the North East Development Commission (NEDC) operates a ₦246 billion salaries budget, describing the allegation as misleading and based on a poor understanding of the federal budgeting process.

In a statement issued in Abuja on Thursday, Director General of the Budget Office, Tanimu Yakubu, said the claim falsely presented a statutory allocation as a personnel-heavy expenditure.

“The Budget Office of the Federation categorically rejects recent claims alleging that the North East Development Commission operates a ₦246 billion ‘salaries budget’. This assertion is misleading, inaccurate, and rooted in a fundamental misunderstanding of the Federal Government of Nigeria’s budgeting framework,” Yakubu said.

He explained that the ₦246.77 billion reflected for the NEDC in the budget was a lump-sum statutory provision, not an allocation dedicated solely to staff salaries.

“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,” he stated.

Yakubu further rejected suggestions that ₦244 billion of the amount was earmarked for personnel costs, describing such conclusions as incorrect.

“The suggestion that ₦244 billion of this allocation is earmarked solely for personnel costs is factually incorrect,” he said.

According to him, the temporary appearance of allocations under personnel costs during budget uploads is a technical convention used when agencies have yet to submit full economic breakdowns.

“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 technical presentation must not be confused with spending intent,” Yakubu explained.

Addressing concerns about capital expenditure, the Budget Office chief clarified that the ₦2.70 billion capital figure cited in public debates resulted from a National Assembly-approved adjustment, with most capital votes deferred 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.

Yakubu stressed that budget documents clearly show ongoing NEDC interventions across the North East, including agricultural support, food security programmes, IDP camp reconstruction, borehole projects, security logistics and constituency-based initiatives.

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

He added that personnel costs were essential to the commission’s operations, funding professionals required to deliver development projects.

“No development institution executes its mandate without institutional capacity,” Yakubu noted.

The Director General said the NEDC remained subject to strict accountability mechanisms, including 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.

Yakubu urged commentators and the public to engage responsibly with fiscal information, warning against the spread of misinformation.

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