The Federal Government has introduced stricter payroll verification measures for newly recruited civil servants as its personnel expenditure rose to N1.96tn in the first quarter of 2026, exceeding capital expenditure by approximately N267bn.
The new directive, issued by the Office of the Accountant-General of the Federation (OAGF), requires all newly recruited federal workers to undergo mandatory documentation and eligibility checks before their admission into the Integrated Personnel and Payroll Information System (IPPIS).
The Director of Press and Public Relations of the OAGF, Bawa Mokwa, announced the measures in a statement on Monday, saying they take immediate effect and apply to all ongoing and subsequent payroll admission processes.
Under the new arrangement, no newly recruited employee will be enrolled without first being captured on the nominal roll of the relevant ministry, department or agency and meeting all prescribed validation requirements.
The directive also requires MDAs seeking to enrol new employees to submit formal requests accompanied by recruitment approvals, appointment letters, applicable waivers and other supporting documents.
The OAGF said the verification process would cover employees’ salary structures, grade levels, salary steps, allowances and other financial entitlements.
It would also include statutory information such as Pension Fund Administrator details, pension identification numbers, National Housing Fund registration and tax records to ensure accurate deductions and timely remittances.
Following the initial verification, employee records will be forwarded to the relevant MDA for confirmation and endorsement by the accounting officer, director of human resources, director of finance and accounts, and designated payroll validating officer.
The documents will subsequently be returned to the OAGF for final processing, with the Accountant-General of the Federation retaining the authority to approve admission into the federal payroll.
The office warned that applications containing incomplete documentation or unresolved discrepancies would be deferred until all requirements were met. It also said officials responsible for processing and approving payroll admissions would be held accountable for breaches of the applicable regulations.
The measures come amid growing pressure on government finances, with personnel expenditure increasing by 7.35 per cent from N1.82tn in the first quarter of 2025 to N1.96tn in the corresponding period of 2026.
An analysis of the Federal Government’s first-quarter budget implementation reports showed that personnel costs accounted for 20.05 per cent of total government expenditure of N9.76tn during the period.
The government spent N1.69tn on capital expenditure, meaning salaries and other personnel obligations exceeded capital spending by about N267bn.
A breakdown showed that personnel expenditure by ministries, departments and agencies increased from N1.57tn to N1.70tn, while spending by government-owned enterprises remained unchanged at N254.35bn.
The Federal Government consequently spent an average of N652.37bn monthly on personnel costs during the first three months of 2026.
Despite the increase, actual personnel expenditure remained below the quarterly budget projection of N2.09tn for MDAs.
The pressure was more pronounced in capital budget implementation. The government recorded a capital expenditure shortfall of N6.38tn against its prorated quarterly projection of N8.07tn.
No funds were released for the implementation of the 2026 capital budget of MDAs during the quarter, although expenditure was recorded under other capital components, including government-owned enterprises, the Tertiary Education Trust Fund and externally financed projects.
The Budget Office attributed the non-release of funds to the continued utilisation by some MDAs of allocations from the 2025 capital budget, whose implementation period had been extended to December 31, 2026.
Government revenue also fell below expectations, with the Federal Government generating approximately N5.08tn against a quarterly target of N9.22tn, representing a shortfall of 44.93 per cent.
Debt-service payments reached N4.63tn during the period, while combined personnel costs and debt-service obligations amounted to N6.58tn, exceeding actual revenue by approximately N1.51tn.
Reacting to the expenditure figures, economist and Chief Executive Officer of CSA Advisory, Dr Aliyu Ilias, expressed concern that personnel costs had exceeded capital spending, warning that the trend could undermine investment in critical infrastructure.
Ilias said government spending should prioritise infrastructure capable of supporting education, healthcare, transportation and other essential services.
He also called on the National Assembly to strengthen its oversight of budget implementation and demand greater accountability in the management of public resources.
Similarly, the Chief Executive Officer of CFG Advisory, Dr Tilewa Adebajo, described the country’s fiscal position as challenging, arguing that rising recurrent expenditure and debt servicing were limiting resources available for productive investment.
Adebajo maintained that economic reforms alone would not improve living standards without stronger productivity, private-sector investment, export diversification and adequate funding for capital projects.
He stressed that macroeconomic stability should serve as a foundation for economic prosperity rather than an end in itself.