FG Tightens Payroll Verification as Personnel Costs Hit N1.96tn, Exceed Capital Spending

The Federal Government has introduced stricter payroll verification procedures for newly recruited workers following a sharp increase in personnel expenditure, which reached N1.96 trillion in the first quarter of 2026 and surpassed capital spending by approximately N267 billion.

The new directive, announced by the Office of the Accountant-General of the Federation (OAGF), takes immediate effect and applies to all ongoing and subsequent applications for the admission of newly recruited federal employees into the Integrated Personnel and Payroll Information System (IPPIS).

The development comes amid growing pressure on government finances, with personnel expenditure increasing from N1.82 trillion in the first quarter of 2025 to N1.96 trillion in the corresponding period of 2026. The increase of N133.94 billion represents a rise of approximately 7.35 per cent year-on-year.

According to the Federal Government’s First Quarter Budget Implementation Report for 2026, personnel expenditure exceeded capital spending, which stood at N1.69 trillion during the three-month period. Personnel costs accounted for 20.05 per cent of the government’s total expenditure of N9.76 trillion, compared with 17.32 per cent for capital expenditure.

A breakdown of the figures showed that personnel costs incurred by Ministries, Departments and Agencies (MDAs) increased from N1.57 trillion in the first quarter of 2025 to N1.70 trillion in the first quarter of 2026. Personnel expenditure by government-owned enterprises remained unchanged at N254.35 billion, indicating that the reported increase was concentrated in the MDA component of the payroll.

In a statement signed by its Director of Press and Public Relations, Bawa Mokwa, the OAGF said newly recruited employees must first be captured on the nominal roll of their respective MDAs and satisfy all prescribed validation and eligibility requirements before they can be enrolled on the federal payroll.

Under the revised procedure, MDAs are required to submit formal applications for payroll admission, supported by recruitment approvals, appointment letters, applicable waivers and other relevant documents. The OAGF will scrutinise the submissions alongside employees’ salary structures, grade levels, salary steps, allowances and other financial entitlements before approving their enrolment.

The verification exercise will also cover statutory employee information, including Pension Fund Administrator details, pension identification numbers, National Housing Fund registration and tax records. Following the initial screening, the records will be returned to the relevant MDAs for confirmation and endorsement by the Accounting Officer, Director of Human Resources, Director of Finance and Accounts, and designated Payroll Validating Officer before final processing by the OAGF.

The office stated that final admission into the federal payroll would depend on the satisfactory completion of all validation procedures and approval by the Accountant-General of the Federation. It warned that applications containing incomplete documentation or unresolved discrepancies would be deferred until the outstanding requirements were met, adding that officials responsible for processing and approving payroll admissions would be held accountable for breaches of the applicable rules.

Meanwhile, the 2026 budget implementation report showed that the Federal Government’s actual personnel expenditure for MDAs stood below the prorated quarterly projection of N2.09 trillion, with N1.70 trillion recorded as expenditure during the first quarter. The report also showed that total capital expenditure of N1.69 trillion fell short of the prorated quarterly projection of N8.07 trillion, while no funds were released for the implementation of MDAs’ 2026 capital budget during the period. The Budget Office attributed the non-release to the continued utilisation of funds from the 2025 capital budget, whose implementation period had been extended to December 31, 2026.