The Federal Government has commenced preparations to present the 2027 Appropriation Bill to the National Assembly in September, as it seeks to restore a more predictable budget cycle and address recurring implementation challenges.
The proposed timeline is contained in the 2027 Personnel Costs Budget Call Circular issued by the Budget Office of the Federation and dated September 4, 2026.
The circular, signed by the Director-General of the Budget Office, Tanimu Yakubu, sets out guidelines for ministries, departments and agencies of government on the preparation and submission of their personnel cost proposals for the 2027 fiscal year.
The Budget Office said the draft 2027–2029 Medium-Term Expenditure Framework and Fiscal Strategy Paper had been concluded in July to pave the way for the early presentation of the 2027 budget to the National Assembly.
The move is expected to enable the government to submit the spending plan about three months before the commencement of the 2027 fiscal year, although the circular did not specify an exact date for the presentation.
Nigeria’s budget cycle has in recent years been characterised by delays and overlapping fiscal years, which have contributed to concerns over timely budget implementation.
The Federal Government had previously attributed part of the problem to inconsistencies in the economic assumptions used by various government agencies in preparing fiscal projections.
Differences in estimates for crude oil prices and production, exchange rates, inflation and non-oil revenue have, according to the government, contributed to gaps between budget projections and actual economic outcomes.
In response, the Economic Management Team initiated measures to harmonise the assumptions used in fiscal and monetary planning.
Ahead of the proposed September submission, the Budget Office has set 4pm on Friday, September 18, 2026, as the deadline for MDAs to submit both hard and electronic copies of their 2027 personnel budget proposals and supporting documents.
As part of efforts to strengthen scrutiny of government agencies, MDAs have also been directed to submit copies of their establishment laws alongside their budget proposals.
The directive followed controversy surrounding the inclusion of the Presidential Foreign Intervention Promotion Council in the 2026 budget, despite questions over its legal status.
The agency had been allocated about N1.3bn in the budget, prompting investigations by the House of Representatives and other government institutions.
The controversy subsequently led President Bola Tinubu to order a forensic investigation into the processes and internal controls that allowed questionable agencies to feature in the federal budget.
The Independent Corrupt Practices and Other Related Offences Commission later reported that its investigation uncovered additional entities operating without proper legal backing.
The ICPC said investigations established that Adeniyi Adeyemi, who presented himself as the Director-General of the Presidential Foreign Intervention Promotion Council, had not been appointed by the Federal Government.
The commission also found that the purported agency had neither been established by an Act of the National Assembly nor created through an executive order.
It further alleged that the appointment letter used by Adeyemi was forged and that the organisation had taken over offices and official instruments previously associated with the defunct Presidential Economic Advisory Council.
The ICPC recommended Adeyemi’s prosecution, disciplinary action against public officials allegedly involved in the scheme and reforms to strengthen internal controls across government institutions.
The commission also identified another organisation, the National Brands Development and Made-in-Nigeria Special Project Office, which it said was operating within the Office of the Secretary to the Government of the Federation without proper authorisation.
The ICPC identified George Buchi Nwabueze as the promoter of the organisation and alleged that he operated under several names.
Following the ICPC briefing, the President ordered Nwabueze’s arrest and directed the suspension of three permanent secretaries in connection with the matter.
The controversy has also attracted criticism from civil society groups, with Amnesty International Nigeria describing it as evidence of weaknesses in the country’s governance and accountability systems.
Beyond verifying the legal status of government agencies, the new budget guidelines introduce stricter controls over personnel expenditure and payroll management.
The Budget Office warned MDAs against making salary or allowance provisions for individuals who are not legitimate Federal Government employees.
It directed agencies to reconcile their personnel records with data contained in the Integrated Personnel and Payroll Information System and the Government Integrated Financial Management Information System.
Under the new guidelines, personnel cost provisions will generally not be made for serving Federal Government workers who are not captured on IPPIS or enrolled on GIFMIS, except where an employee has been formally exempted by the relevant authority.
MDAs are also required to use only salary structures and allowances approved by the National Salaries, Incomes and Wages Commission.
They must verify employees’ grade levels, steps and annual increments before submitting their personnel budgets.
The government has further prohibited MDAs from making budgetary provisions for anticipated promotions.
Only promotions that have already been approved and taken effect are to be reflected in the 2027 personnel budget, while promotions expected to occur during the year will be funded centrally through the Service-Wide Vote for promotion and salary arrears.
The guidelines also impose stricter documentation requirements for new recruitment.
MDAs seeking to budget for newly recruited personnel must provide relevant documents, including financial clearance, letters of first appointment and applicable recruitment waivers or approvals.
The Budget Office warned that it would not accept claims arising from salary shortfalls or payroll lockouts caused by unauthorised recruitment.
The new rules also exclude consultants, contract workers, National Youth Service Corps members, industrial trainees, outsourced service providers and legionnaires from MDAs’ permanent nominal rolls.
Non-executive board members are similarly excluded from personnel costs, with their fees and allowances to be captured under overhead expenditure.
Additional controls have been introduced for the health and education sectors to prevent multiple payroll entries involving consultants, lecturers, interns and other temporary personnel.
The Budget Office said workers employed by outsourced service providers must not be included on the payrolls of MDAs and warned that doing so would be treated as a fraudulent act and referred to the appropriate authorities.
Federal health institutions have also been directed to comply with approved quotas for interns and honorary consultants, with relevant registration and licence numbers required for verification.
The recruitment and deployment of house officers and nursing interns will be centrally coordinated by the Medical and Dental Council of Nigeria and the Nursing and Midwifery Council of Nigeria respectively.
The government warned that health institutions that independently recruit or deploy such personnel outside the approved system could face sanctions.
To improve monitoring, the Budget Office said it would introduce a centralised Personnel Cost Monitoring Dashboard linked to IPPIS and GIFMIS.
The system is expected to enable the government to monitor actual personnel expenditure against approved budgetary provisions.
A standing committee within the Budget Office will also review requests for salary and promotion arrears quarterly, while a Payroll Discrepancy Resolution Committee will meet monthly to address inconsistencies between MDA submissions and government payroll records.
MDAs have additionally been directed to establish joint human resources and budget teams to improve coordination between staffing decisions and personnel budget planning.
The Budget Office also set September 30, 2026, as the deadline for MDAs to submit their third-quarter personnel budget performance reports.
The reports are expected to assist the government in assessing personnel expenditure and improving future budget planning.
Ministers, heads of agencies and accounting officers are required to endorse and certify the accuracy of the information contained in their personnel budget submissions before they are forwarded to the Budget Office.
The Federal Government said the measures were aimed at improving budget credibility, strengthening payroll controls, eliminating unauthorised personnel expenditure and ensuring that public funds are allocated to legally established institutions and legitimate government employees.
