FG introduces stricter payroll guidelines as personnel prices rise to N1.96tn

The new directive, introduced by the Office of the Accountant-General of the Federation, takes fast impact and applies to all ongoing and subsequent payroll admission processes beneath the Integrated Personnel and Payroll Information System, IPPIS.

In a press release signed by its Director of Press and Public Relations, Bawa Mokwa, the OAGF mentioned newly recruited staff should first be captured on the nominal roll of their respective Ministries, Departments and Agencies, MDAs, and fulfill all prescribed verification and eligibility necessities earlier than being enrolled.

The verification course of may also cowl wage constructions, grade ranges, wage steps, allowances and different monetary entitlements, in addition to statutory particulars reminiscent of pension identification numbers, Pension Fund Administrator data, National Housing Fund registration and tax information.

According to the Federal Government, purposes with incomplete documentation or unresolved discrepancies will likely be withheld till all necessities are met.

The directive additional requires worker information to be endorsed by the related Accounting Officer, Director of Human Resources, Director of Finance and Accounts, and designated Payroll Validating Officer earlier than last approval by the Accountant-General of the Federation.

The improvement comes amid rising authorities personnel prices.

An evaluation of the Federal Government’s first-quarter finances implementation reviews for 2025 and 2026 confirmed that personnel expenditure elevated from N1.82tn within the first quarter of 2025 to N1.96tn within the corresponding interval of 2026.

The improve of N133.94bn represents a 7.35 per cent rise.

The 2026 report additionally confirmed that personnel expenditure exceeded capital spending, which stood at N1.69tn, by roughly N267bn.

Personnel prices accounted for 20.05 per cent of the Federal Government’s complete expenditure of N9.76tn throughout the interval.

A breakdown confirmed that personnel spending by MDAs elevated from N1.57tn to N1.70tn, whereas Government-Owned Enterprises recorded unchanged personnel expenditure of N254.35bn.

Meanwhile, the Federal Government generated roughly N5.08tn in income in opposition to a quarterly goal of N9.22tn, representing a shortfall of 44.93 per cent.

Debt servicing additionally gulped N4.63tn, representing about 91.18 per cent of precise income.

The authorities consequently recorded a fiscal deficit of N4.69tn throughout the quarter.

The Budget Office mentioned measures to manage recurrent expenditure included restrictions on unapproved recruitment by MDAs and necessities for prior clearance earlier than recruitment and payroll enrolment.

The newest payroll restrictions come because the Federal Government prepares to introduce a month-to-month N70,000 transport allowance for public servants from November, following discussions with the Nigeria Labour Congress.

The allowance is predicted to run for six months, though the federal government has but to reveal the variety of beneficiaries or the overall value of the intervention.

Reacting to the rising personnel expenditure, economist and Chief Executive Officer of CSA Advisory, Dr Aliyu Ilias, warned that permitting personnel prices to exceed capital expenditure may undermine funding in crucial infrastructure.

He harassed the necessity for the federal government to prioritize capital tasks, notably in training, healthcare and transportation, noting that social infrastructure stays important to nationwide improvement.