The Budget Office of the Federation has dismissed reports alleging that the North East Development Commission (NEDC) is operating a ₦246 billion budget dedicated almost entirely to salaries, describing the claims as false, misleading and rooted in a misunderstanding of Nigeria’s federal budgeting process.
In a statement signed by the Director General of the Budget Office of the Federation, Tanimu Yakubu in Abuja on January 15, 2026, the Office clarified that the ₦246.77 billion reflected for the NEDC in the federal budget is a statutory lump-sum allocation prepared in line with the Medium-Term Expenditure Framework (MTEF), and not a provision meant solely for personnel costs.
It explained that assertions suggesting about ₦244 billion of the allocation is earmarked for salaries are factually incorrect. According to the Budget Office, during budget preparation, allocations may temporarily appear under the personnel cost line as a technical placeholder when agencies have not yet submitted detailed internal economic breakdowns.
The Office noted that this is a recognised budgeting convention, pending full submissions, legislative scrutiny and approved reallocations during budget execution, stressing that such technical presentation should not be interpreted as actual spending intent.
Addressing concerns over capital expenditure, the Budget Office said the ₦2.70 billion capital figure being circulated resulted from a National Assembly-approved adjustment in the 2025 budget, with about 70 per cent of the capital allocations rolled over into the 2026 fiscal year. It said the decision was related to the timing and sequencing of appropriations and does not imply the absence of development projects in the North East.
The Office pointed to detailed project schedules attached to the budget, outlining ongoing and planned interventions such as agricultural support, food security programmes, rehabilitation of internally displaced persons’ camps, construction of orphanages, borehole projects, security logistics support and constituency-level initiatives across the region.
It warned that focusing on a single budget line while ignoring comprehensive project schedules amounts to distortion rather than informed analysis.
Defending the inclusion of personnel costs, the Budget Office noted that development commissions require skilled professionals, including engineers, project managers, procurement officers and monitoring teams, to effectively deliver projects and ensure value for money.
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On accountability, the Office said the NEDC remains subject to multiple oversight mechanisms, including the MTEF, annual Appropriation Acts, National Assembly oversight, quarterly budget performance reports and statutory audits.
The statement urged the public to engage responsibly with fiscal information, warning that the spread of misinformation undermines, rather than strengthens, public accountability.
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