Budget Office debunks false narrative on NEDC allocation

Mariam Abeeb

The Budget Office of the Federation has categorically rejected recent claims alleging that the North East Development Commission (NEDC) operates a N246 billion “salaries budget.”

A statement by Tanimu Yakubu, the Director General , described the assertion as “misleading, inaccurate, and rooted in a fundamental misunderstanding of the Federal Government of Nigeria’s budgeting framework”.

According to the statement, contrary to claims circulating in the public domain, the N246.77 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 (MTEF).”, it further noted.

Continuing, it said “The suggestion that N244 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.

“With respect to capital expenditure, the N2.70 billion cited in public commentary reflects the National Assembly-approved rephrasing of capital votes in the 2025 budget, with approximately 70 per cent rolled into the 2026 fiscal year. This was a legislative decision regarding the timing and sequencing of appropriations and does not indicate a lack of development projects.

“Indeed, project schedules attached to the same budget documents show multiple ongoing interventions across the North East, including agricultural support programmes, food security initiatives, orphanage construction and rehabilitation, IDP camp reconstruction, boreholes, security logistics, and constituency-level development projects. Selective reading of a single budget line while ignoring accompanying schedules is not analysis—it is a distortion.

“Personnel costs within a development commission are neither unusual nor improper. 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.

“The NEDC operates within well-defined accountability frameworks, including the MTEF, annual Appropriation Acts, National Assembly oversight, quarterly budget performance reporting, and statutory audits. Genuine public scrutiny is welcome and encouraged, but it must be informed by an understanding of how the budget system works.

“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.

“The Budget Office urges commentators and members of the public to engage responsibly with fiscal information.

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