The Budget Office of the Federation has dismissed claims that the North East Development Commission (NEDC) operates a ₦246 billion budget solely for salaries, describing the assertion as misleading and rooted in a misunderstanding of the federal budgeting process.
In a statement issued on Thursday, the Director-General of the Budget Office, Tanimu Yakubu, explained that the ₦246.77 billion reflected against the NEDC in the federal budget is not earmarked exclusively for personnel costs but represents a statutory lump-sum allocation presented at an aggregate level.
“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,” Yakubu said.
He noted that allocations for statutory and quasi-statutory bodies are often presented in bulk under the Medium-Term Expenditure Framework (MTEF), particularly at the early stages of budget preparation.
“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 explained.
Yakubu added that where agencies have not submitted detailed internal economic breakdowns at the point of budget upload, allocations may temporarily appear under the Personnel Cost heading as a technical placeholder.
“The suggestion that ₦244 billion of this allocation is meant solely for personnel costs is factually incorrect. Such temporary classification 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,” he said.
Addressing concerns about capital expenditure, the Budget Office boss clarified that the ₦2.70 billion cited by commentators resulted from a National Assembly-approved rephrasing of capital votes in the 2025 budget, with about 70 per cent deferred to the 2026 fiscal year.
“This was a legislative decision on the timing and sequencing of appropriations and does not indicate an absence of development projects,” Yakubu stated.
He further disclosed that project schedules attached to the budget show ongoing interventions across the North East, including agricultural support programmes, food security initiatives, construction and rehabilitation of orphanages, reconstruction of internally displaced persons’ camps, borehole projects, security logistics and constituency-level developments.
“Selective reading of a single budget line while ignoring accompanying schedules is not analysis—it is a distortion,” he said.
Yakubu stressed that personnel costs are essential for a development commission to effectively carry out its mandate.
“They fund engineers, procurement officers, project managers, monitoring and evaluation teams, and fiduciary oversight required to design, supervise and deliver projects. No development institution executes its mandate without institutional capacity,” he explained.
He also assured that the NEDC operates within established accountability frameworks, including the MTEF, annual Appropriation Acts, 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,” Yakubu said, cautioning against the spread of misinformation.
The Budget Office warned that portraying the NEDC as an agency existing only to pay salaries does not serve accountability and misrepresents the budget process.
Elijah Adeyemi
