BREAKING: Budget Office reacts to Alleged NEDC Secret ‘N246 Billion Salary Account’
The Budget Office of the Federation has dismissed claims making the rounds that the North East Development Commission (NEDC) operates a ₦246 billion salary budget, describing the allegation as false, misleading and based on a poor understanding of the Federal Government’s budgeting structure.
In a statement issued on Thursday and signed by the Director General of the Budget Office, Tanimu Yakubu, the agency said the figure being referenced publicly does not represent a salaries-only allocation, but a statutory lump-sum provision captured under approved budget preparation procedures.
The statement was dated January 15, 2026.
According to the Budget Office, the ₦246.77 billion recorded against the NEDC in the federal budget is a consolidated figure that is sometimes uploaded at aggregate level for statutory and quasi-statutory institutions under the Medium-Term Expenditure Framework (MTEF).
It added that the claim suggesting ₦244 billion of that amount is dedicated solely to personnel cost is “factually incorrect.”
The Office explained that in some cases, when agencies have not submitted detailed internal economic breakdowns at the time budget entries are uploaded, the total allocation may temporarily appear under personnel cost as a technical placeholder.
It said this is a recognised convention during budget preparation and does not reflect the final spending structure or intent.
“This technical presentation must not be confused with spending intent,” the Budget Office stated.
Addressing public commentary that only ₦2.70 billion was set aside for capital projects, the Budget Office attributed the figure to legislative adjustments made by the National Assembly, which reportedly restructured capital votes in the 2025 budget and rolled over about 70 per cent into the 2026 fiscal year.
It said the adjustment was a decision tied to appropriation timing and sequencing, and should not be interpreted to mean the absence of development projects.
The agency insisted that project schedules attached to budget documents clearly show multiple ongoing interventions in the North East, including agricultural support programmes, food security efforts, orphanage construction and rehabilitation, reconstruction of internally displaced persons (IDP) camps, borehole projects, security logistics support, and constituency-level initiatives.
The Budget Office criticised what it called selective interpretation of a single budget line while ignoring supporting schedules, warning that such an approach misrepresents the true picture.
It also defended the existence of personnel costs within a development commission, noting that staffing funds are required for the professionals needed to deliver projects effectively, including engineers, procurement officers, project managers, monitoring teams, and financial oversight units.
“No development institution executes its mandate without institutional capacity,” the statement added.
The Budget Office further said the NEDC operates within accountability and oversight structures, including the MTEF, annual Appropriation Acts, National Assembly supervision, quarterly budget performance reporting, and statutory audits.
