The Federal Government has introduced stricter verification requirements for newly recruited workers seeking admission into its payroll, as personnel costs rose by N133.94bn to N1.96tn in the first quarter of 2026, exceeding capital expenditure during the period.
An analysis by The PUNCH, of the Federal Government’s First Quarter Budget Implementation Reports for 2025 and 2026 showed that personnel expenditure increased by 7.35 per cent from N1.82tn in the corresponding period of 2025, reflecting growing pressure on public finances.
The new measures were announced on Monday by the Office of the Accountant-General of the Federation in a statement signed by its Director of Press and Public Relations, Bawa Mokwa.
The OAGF said the directive, which takes immediate effect, applies to all ongoing and subsequent payroll admission processes under the Integrated Personnel and Payroll Information System.
The statement read, “Henceforth, no newly recruited employee shall be enrolled without first being captured on the nominal roll of the relevant MDA and satisfying all prescribed validation and eligibility requirements.”
According to the 2026 First Quarter Budget Implementation Report, the Federal Government spent N1.96tn on personnel costs between January and March, compared with N1.69tn on capital expenditure.
This means salaries and related personnel obligations exceeded capital spending by approximately N267bn, or 15.77 per cent.
Personnel expenditure accounted for 20.05 per cent of the Federal Government’s total expenditure of N9.76tn, while capital expenditure represented 17.32 per cent.
A breakdown showed that personnel costs for Ministries, Departments and Agencies increased from N1.57tn in the first quarter of 2025 to N1.70tn in the corresponding period of 2026, representing an increase of N133.94bn, or 8.54 per cent.
Personnel expenditure by Government-Owned Enterprises remained unchanged at N254.35bn, indicating that the entire increase in the reported wage bill came from MDAs.
The figures further showed that the Federal Government spent an average of N652.37bn monthly on personnel costs during the review period, compared with N607.73bn in the corresponding period of 2025.
Despite the increase, actual personnel spending remained below the quarterly budget projection.
The Budget Office disclosed that N8.35tn was allocated to MDAs’ personnel costs in the 2026 budget, compared with N7.60tn in 2025, representing an increase of approximately N758.51bn, or 9.99 per cent.
The report stated, “The sum of N8.35tn was appropriated for MDAs Personnel Cost in the 2026 Budget. This translates to a prorated quarterly expenditure outlay of N2.09tn in 2026. Actual expenditure of N1.70tn was released in the first quarter of 2026, translating to N385.78bn (18.47 percent) below the quarterly projection for the year.”
While personnel expenditure continued to rise, implementation of the Federal Government’s capital budget remained significantly below expectations.
The report showed that total capital expenditure of N1.69tn fell short of the prorated quarterly projection of N8.07tn by N6.38tn, representing a shortfall of 79.06 per cent.
More significantly, no funds were released for the implementation of MDAs’ 2026 capital budget during the quarter, despite a prorated allocation of N3.92tn.
Explaining the development, the Budget Office stated, “Funds for MDAs’ capital expenditure were not released in the first quarter of 2026 because some MDAs were still utilising funds released under the 2025 capital budget, whose implementation period had been extended to 31st December, 2026.”
Consequently, implementation of the 2026 MDAs’ capital budget stood at zero as of March 31, although expenditure was recorded under other capital components, including GOEs, the Tertiary Education Trust Fund and externally financed projects.
GOEs accounted for N740.32bn in capital expenditure, while TETFund spending stood at N393.56bn. Multilateral and bilateral project-tied loans contributed N287.44bn, while grants and donor-funded projects accounted for N249.50bn.
The pressure was further reflected in non-debt recurrent expenditure, which increased from N2.24tn in the first quarter of 2025 to N2.77tn in the corresponding period of 2026, representing an increase of approximately N523.49bn.
