The Funds Workplace of the Federation has dismissed claims that the NEDC runs a N246 billion salaries price range, saying the assertion is deceptive and stems from a misunderstanding of Nigeria’s federal budgeting course of.
This clarification was offered in an announcement issued on Thursday by the Director-Basic of the Funds Workplace, Tanimu Yakubu, in response to public commentary surrounding figures within the 2025 federal price range.
In keeping with the Funds Workplace, the N246.77 billion allocation linked to the NEDC is a statutory lump-sum provision offered at an combination degree and never an unique personnel value as alleged.
What the Funds Workplace is saying
Yakubu defined that the determine attributed to the NEDC within the price range displays commonplace price range presentation practices below the Medium-Time period Expenditure Framework (MTEF) for statutory and quasi-statutory companies.
He famous that such allocations are sometimes captured in bulk on the early phases of price range preparation, with detailed breakdowns—personnel, overheads, and capital expenditure—offered later throughout price range defence, legislative scrutiny, and implementation.
“The declare that the NEDC exists merely to pay salaries is unfounded. It conflates technical price range presentation with precise expenditure intent, ignores legislative appropriation dynamics, and disregards project-level proof already embedded in official paperwork,” he mentioned.
He additional clarified that the place companies fail to add full inner financial breakdowns on the preliminary price range stage, allocations could quickly seem below the Personnel Value heading as a technical placeholder.
“This can be a recognised procedural conference pending detailed submissions, legislative changes, and authorized reallocations throughout price range execution. This technical presentation should not be confused with spending intent,” he added.
Addressing considerations in regards to the comparatively small capital expenditure determine of N2.70 billion cited by commentators, Yakubu mentioned the quantity displays a Nationwide Meeting-approved adjustment within the 2025 price range.
- In keeping with him, about 70% of the capital allocation was deferred to the 2026 fiscal yr as a part of legislative selections on the timing and sequencing of appropriations.
- He confused that this doesn’t recommend the absence of growth tasks, noting that price range schedules connected to the appropriation clearly define ongoing and deliberate interventions throughout the North East.
- These embody agricultural and meals safety programmes, reconstruction of internally displaced individuals (IDP) camps, rehabilitation of orphanages, borehole and water provide tasks, safety logistics assist, and constituency-level initiatives.
“Selective studying of a single price range line whereas ignoring accompanying schedules isn’t evaluation—it’s a distortion,” Yakubu mentioned.
Why this issues
The clarification highlights ongoing public confusion round how federal budgets are structured and interpreted, notably for statutory companies with massive growth mandates.
Yakubu emphasised that personnel prices are a obligatory a part of any growth establishment, funding engineers, procurement officers, undertaking managers, monitoring and analysis groups, and fiduciary oversight features required for efficient undertaking supply.
Whereas welcoming public scrutiny, the Funds Workplace cautioned that misinformation undermines knowledgeable debate and accountability.
What you must know
The NEDC was established to coordinate reconstruction, stabilisation, and growth efforts in Nigeria’s North East following years of insurgency and humanitarian crises.
Statutory companies are sometimes offered as lump-sum allocations at early price range phases, with granular particulars rising throughout legislative evaluate and execution.
President Bola Tinubu, on December 19, 2025 offered the 2026 price range to the Nationwide Meeting with a N23.85 trillion deficit.
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