FG Tightens Payroll Checks as Salary Bill Hits N1.96tn

The Federal Government has introduced stricter measures to verify newly recruited workers before admitting them into its payroll, following a rise in personnel expenditure to ₦1.96tn in the first quarter of 2026.

The new directive, issued by the Office of the Accountant-General of the Federation (OAGF), requires all Ministries, Departments and Agencies (MDAs) to complete mandatory checks on recruitment approvals, employee records and financial entitlements before newly employed workers can receive salaries through the Integrated Personnel and Payroll Information System (IPPIS).

The measure takes immediate effect and applies to all ongoing and future payroll admission processes involving newly recruited federal employees.

The OAGF announced the changes in a statement signed by its Director of Press and Public Relations, Bawa Mokwa, explaining that the revised procedures were designed to strengthen accountability, improve transparency and prevent irregular entries into the federal payroll.

Under the new arrangement, no newly recruited employee will be enrolled without first appearing on the nominal roll of the relevant ministry, department or agency and meeting all prescribed validation and eligibility requirements.

Government agencies seeking to enrol new workers must submit formal applications to the OAGF, supported by recruitment approvals, appointment letters, applicable waivers and other relevant documents.

The submitted records will be examined to confirm the authenticity of appointments and the accuracy of salary structures, grade levels, steps, allowances and other financial entitlements.

The verification process will also cover employees’ Pension Fund Administrator details, pension identification numbers, National Housing Fund registration and tax records to ensure that statutory deductions and remittances are properly handled.

After the initial screening, the records will be returned to the relevant MDAs for confirmation and endorsement by their Accounting Officers, Directors of Human Resources, Directors of Finance and Accounts and designated Payroll Validating Officers.

The documents will then be returned to the OAGF for final processing. The Accountant-General of the Federation will retain the authority to approve the admission of newly recruited employees into the federal payroll.

The government also warned that applications containing incomplete documentation or unresolved discrepancies would not be processed until the outstanding issues had been addressed.

Officials responsible for processing and approving payroll entries will be held accountable for any breach of the applicable rules. Permanent Secretaries, heads of agencies and other relevant officers have been directed to ensure strict compliance with the revised procedures.

The tighter controls come amid rising personnel costs, which increased by ₦133.94bn, representing 7.35 per cent, from ₦1.82tn in the first quarter of 2025 to ₦1.96tn in the corresponding period of 2026.

Figures from the Federal Government’s First Quarter Budget Implementation Report showed that personnel expenditure between January and March 2026 exceeded capital expenditure by approximately ₦267bn.

While the government spent ₦1.96tn on personnel costs during the period, capital expenditure stood at ₦1.69tn. Personnel spending accounted for 20.05 per cent of total government expenditure of ₦9.76tn, compared with 17.32 per cent for capital spending.

A breakdown showed that personnel costs across MDAs rose from ₦1.57tn in the first quarter of 2025 to ₦1.70tn in the first quarter of 2026, representing an increase of 8.54 per cent.

Personnel expenditure by Government-Owned Enterprises remained unchanged at ₦254.35bn, indicating that the reported increase came from spending by MDAs.

The Federal Government spent an average of ₦652.37bn monthly on personnel costs during the first quarter of 2026, compared with ₦607.73bn in the corresponding period of the previous year.

Despite the increase, actual personnel spending remained below the quarterly budget projection. The 2026 budget allocated ₦8.35tn for personnel costs across MDAs, compared with ₦7.60tn in 2025.

The quarterly projection stood at ₦2.09tn, but actual expenditure during the first three months was ₦1.70tn, leaving a shortfall of ₦385.78bn, or 18.47 per cent.

The pressure on government finances was also reflected in capital spending. Total capital expenditure of ₦1.69tn fell short of the prorated quarterly projection of ₦8.07tn by ₦6.38tn, representing a shortfall of 79.06 per cent.

The report further showed that no funds were released for the implementation of the 2026 capital budgets of MDAs during the quarter, despite a prorated allocation of ₦3.92tn.

The Budget Office explained that some agencies were still using funds released under the 2025 capital budget, whose implementation period had been extended to December 31, 2026.

Other capital spending during the period included ₦740.32bn by Government-Owned Enterprises, ₦393.56bn by the Tertiary Education Trust Fund and funding for externally financed projects.

Non-debt recurrent expenditure also increased from ₦2.24tn in the first quarter of 2025 to ₦2.77tn in the same period of 2026, with personnel costs accounting for 70.73 per cent.

Pension and gratuity payments rose sharply from ₦161.60bn to ₦330.72bn, representing an increase of 104.65 per cent. When combined with personnel costs, the government’s obligations in these areas reached ₦2.29tn during the first quarter.

The rising expenditure came as government revenue remained below expectations. The Federal Government generated approximately ₦5.08tn between January and March 2026, against a quarterly target of ₦9.22tn, representing a shortfall of 44.93 per cent.

Personnel costs alone were equivalent to 38.56 per cent of actual revenue, meaning that nearly ₦39 out of every ₦100 received during the period went towards salaries and related personnel obligations.

Debt-service payments stood at ₦4.63tn, equivalent to about 91.18 per cent of actual revenue. Combined personnel costs and debt-service obligations amounted to ₦6.58tn, exceeding government revenue by approximately ₦1.51tn.

The Federal Government consequently recorded a fiscal deficit of ₦4.69tn during the period.

The OAGF said the new payroll admission requirements formed part of broader efforts to strengthen the IPPIS and improve the management of public personnel expenditure.

The revised system places greater responsibility on government agencies to maintain accurate employee records, confirm legitimate appointments and ensure that salary payments are supported by the necessary approvals.

The government is also seeking to contain recurrent expenditure through restrictions on unapproved recruitment, while ensuring that only properly documented and eligible workers are admitted into the federal payroll.