The Budget Office of the Federation has dismissed reports claiming that the North East Development Commission, NEDC, operates a N246 billion salaries budget.
The Budget Office described the claim as inaccurate and based on a misunderstanding of federal budget structures.
In a statement on Thursday, Director General of the Budget Office, Tanimu Yakubu, explained that the N246.77 billion allocation for the NEDC in the federal budget is not solely for staff salaries.
Instead, he said it is a statutory lump-sum allocation presented in aggregate form, in line with standard budget practices.
Yakubu stressed that claims suggesting the NEDC exists only to pay salaries are unfounded, as they confuse technical budget presentation with actual expenditure and ignore project-level allocations.
He noted that under the Medium-Term Expenditure Framework, MTEF, statutory agencies often have bulk allocations initially, which are later detailed through legislative approval and budget execution.
Where agencies do not submit complete economic breakdowns during budget preparation, allocations may temporarily appear under personnel costs.
Yakubu explained, “The suggestion that N244 billion is earmarked solely for personnel costs is factually incorrect.this technical presentation must not be confused with spending intent.”
On capital expenditure, he clarified that the N2.70 billion cited by critics reflects a legislative decision to reschedule part of the 2025 budget to 2026 and does not imply the absence of development projects.
Yakubu highlighted ongoing initiatives including agricultural support, food security programs, rehabilitation of orphanages, rebuilding of IDP camps, borehole projects, security logistics, and constituency-based interventions.
He also emphasized the role of personnel costs in enabling effective project delivery.
“They fund engineers, procurement officers, project managers, monitoring and evaluation teams, and fiduciary oversight required to design, supervise, and deliver projects effectively.”
Yakubu reassured the public that the NEDC is subject to multiple accountability mechanisms, including MTEF, annual Appropriation Acts, National Assembly oversight, quarterly performance reports, and statutory audits.
He concluded by welcoming informed scrutiny but warned against spreading false narratives, stating that portraying the NEDC as an agency set up solely to pay salaries is misleading.