Paragraph 1: The Nigerian Federal Government has initiated preparations for the 2026 national budget, aiming for submission to the National Assembly by September 2025. This proactive approach, communicated through a Budget Call Circular issued by the Budget Office of the Federation, underscores the government’s commitment to timely budget planning and adherence to the Fiscal Responsibility Act of 2007. The circular, addressed to key government officials including ministers, permanent secretaries, and heads of parastatals, mandates the commencement of preparations for the personnel cost component of the budget proposals. This early start is designed to ensure that the 2026-2028 Medium-Term Expenditure Framework and Fiscal Strategy Paper are finalized by July 2025, a prerequisite for the timely submission of the complete budget.
Paragraph 2: The Budget Office’s circular emphasizes strict adherence to guidelines and regulations governing personnel costs. It explicitly warns against unauthorized expenditures on salaries and allowances, stressing that only legitimate federal government employees should be included in the personnel budget. This measure aims to curtail potential financial irregularities and ensure responsible allocation of public funds. To further enforce compliance, ministries, departments, and agencies (MDAs) are required to validate their payrolls against records generated by the Integrated Payroll and Personnel Information System (IPPIS) and the Government Integrated Financial Management Information System (GIFMIS). This cross-referencing is intended to minimize discrepancies and enhance transparency in salary payments.
Paragraph 3: Several new payroll measures have been introduced for the 2026 budget. A key change is the mainstreaming of a 1% Employee’s Compensation Scheme contribution for the National Social Insurance Trust Fund (NSITF). This integration, mandated by a Federal Executive Council order, aims to streamline the payment process and ensure consistent contributions. The circular also addresses the issue of promotions, prohibiting MDAs from budgeting for anticipatory upgrades. Only promotions that have been formally approved and implemented will be reflected in the personnel budget. Future promotions scheduled for 2026 will be addressed separately under a dedicated Public Service Wage Adjustment vote.
Paragraph 4: The Budget Office has issued clear instructions regarding the inclusion of non-permanent staff in personnel rolls. Consultants, contract staff, youth corps members, industrial attachés, and outsourced workers are explicitly excluded from the nominal roll. Allowances for youth corps members will be centrally provided for in the National Youth Service Corps budget, with any additional allowances payable by host MDAs to be sourced from their overhead cost provisions. These stipulations are designed to ensure accurate representation of permanent government employees and maintain budgetary clarity. For health and education institutions, further measures have been introduced to prevent fraudulent staffing practices. The inclusion of outsourced staff in payroll records is now considered a fraudulent act, subject to reporting to relevant authorities. This stringent approach aims to curb potential abuses within these sectors.
Paragraph 5: To enhance fiscal oversight and monitor budget implementation, the government is introducing a centralized Personnel Cost Monitoring Dashboard. Linked to IPPIS and GIFMIS, this dashboard will enable real-time tracking of actual personnel expenditure against approved budgetary provisions. This enhanced transparency is intended to improve accountability and ensure that spending remains within allocated limits. Furthermore, a Service Level Agreement has been established to streamline the processing of salary arrears requests, ensuring completion within 30 working days. A dedicated Payroll Discrepancy Resolution Committee will also meet monthly to address any mismatches between MDA submissions and payroll outputs, further enhancing accuracy and efficiency in payroll management.
Paragraph 6: The Budget Office has implemented strict deadlines for the submission of personnel budget proposals. MDAs are required to submit both hard and soft copies of their proposals, along with additional information templates, by July 15, 2025. Each submission requires the signature and initials of the respective minister or chief executive, underscoring individual accountability. Furthermore, MDAs are now required to submit a third-quarter personnel budget performance review report by September 30, 2025. This regular reporting mechanism will allow the government to monitor budget performance, identify potential challenges, and make necessary adjustments. This proactive approach to budget management is crucial given the reported potential for the 2025 budget to be extended into 2026 due to slow project implementation and procurement delays. The government’s emphasis on fiscal discipline and adherence to established procedures aims to mitigate these challenges and ensure efficient utilization of public resources.
