The Budget Office of the Federation has dismissed reports claiming that the North East Development Commission (NEDC) operates a N246 billion salaries budget, describing the claim as inaccurate and based on a misunderstanding of federal budget structures.

In a statement on Thursday, Director-General Tanimu Yakubu explained that the N246.77 billion allocation for the NEDC in the federal budget is a statutory lump-sum, not exclusively for staff salaries. He said critics have misinterpreted the technical presentation of the budget, which often lists bulk allocations before detailed expenditure breakdowns are approved through the legislative process.

Yakubu clarified that under the Medium-Term Expenditure Framework (MTEF), statutory agencies may initially show large allocations under personnel costs when full economic breakdowns are not yet available. “The suggestion that N244 billion is earmarked solely for personnel costs is factually incorrect. This technical presentation must not be confused with spending intent,” he said.

On capital expenditure, Yakubu noted that the N2.70 billion cited by critics reflects the rescheduling of part of the 2025 budget to 2026, and does not indicate an absence of development projects. He highlighted ongoing NEDC initiatives, including agricultural support, food security programs, rehabilitation of orphanages, rebuilding of IDP camps, borehole projects, security logistics, and constituency-based interventions.

The DG emphasized that personnel costs fund the staff needed to execute projects effectively, including engineers, procurement officers, project managers, and monitoring and evaluation teams.

Yakubu reassured the public that the NEDC is subject to multiple accountability mechanisms, including annual Appropriation Acts, National Assembly oversight, quarterly performance reports, statutory audits, and adherence to the MTEF. He warned against spreading false narratives portraying the NEDC as an agency set up solely to pay salaries.