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FG Tightens Payroll Checks as Salaries Gulp N1.96tn


The Federal Government has introduced stricter verification requirements for newly recruited workers seeking enrolment on its payroll, as personnel costs rose by N133.94 billion to N1.96 trillion in the first quarter of 2026, exceeding capital expenditure during the period.


The new measures were announced on Monday by the Office of the Accountant-General of the Federation (OAGF) in a statement signed by its Director of Press and Public Relations, Bawa Mokwa. 


The directive takes immediate effect and applies to all ongoing and subsequent payroll admissions under the Integrated Personnel and Payroll Information System (IPPIS).


“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,” the statement said.


According to the 2026 First Quarter Budget Implementation Report, the Federal Government spent N1.96 trillion on personnel costs between January and March, compared with N1.69 trillion on capital expenditure. 


This means salaries and related obligations exceeded capital spending by about N267 billion, or 15.77 per cent.Personnel costs accounted for 20.05 per cent of the Federal Government’s total expenditure of N9.76 trillion, while capital expenditure represented 17.32 per cent. 


Costs for Ministries, Departments and Agencies (MDAs) rose from N1.57 trillion in the first quarter of 2025 to N1.70 trillion in the same period of 2026, an increase of N133.94 billion (8.54 per cent). Expenditure by Government-Owned Enterprises remained flat at N254.35 billion.


MDAs seeking to enrol new employees must now submit formal requests with recruitment approvals, appointment letters, applicable waivers and other supporting documents. The process will verify salary structures, grade levels, allowances, pension details, National Housing Fund registration and tax records. 


Incomplete documentation will lead to deferred admission, and responsible officials will be held accountable for breaches.Despite the rise, actual MDA personnel spending was still N385.78 billion below the quarterly budget projection. Capital budget implementation lagged significantly, with no funds released for MDAs’ 2026 capital projects in the quarter because some agencies were still utilising 2025 capital funds extended to December 31, 2026.


Revenue performance was weak, with the government generating about N5.08 trillion against a quarterly target of N9.22 trillion. Personnel costs alone equalled 38.56 per cent of actual revenue, while debt-service payments reached N4.63 trillion. The Federal Government recorded a fiscal deficit of N4.69 trillion in the period. 

  

 

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