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2026 Budget: FG Warns MDAs Against Adding Fictitious Employees In Overhead


Ahead of 2026 fiscal year, the Federal Government has issued a strong warning to Ministries Department and Agencies (MDAs) against adding fictitious employees in their salary schedules.

The government said unauthorised payments from the personnel coat detected would attract sanctions, according to a circular obtained yesterday by New Telegraph. The circular signed by the Director General of Federation, Mallam Tanimu Yakubu, originated from the Budget Office. It said that payment of salaries and allowances was for legitimate employees of the FGN only.

“According to the circular, “you are required to validate the enclosed payroll for your sector/MDA as obtained from the IPPIS/ GIFMIS. Please note that no personnel cost provision will be made in the 2026 budget for any serving employee of FGN, who is not captured on the IPPIS platform or enrolled on the GIFMIS, unless specifically exempted by the appropriate authority”.

The circular, accompanied by guidelines, detailed preparation format for 2026 budget (personnel) and its submission by MDAs, warning that they should adhere strictly to the guidelines in preparation for the 2026 budget with regard to overheads.

Part of the guidelines states: “The payrolls obtained from IPPIS and GIFMIS have been mapped onto the relevant salary structures of your MDAs as approved by the National Salaries,Incomes and Wages Commission (NSIWC).

“Please note that BOF has taken further steps to mainsteam/integrate approved one per cent Employee’s Compensation Scheme (ECS)for payment of the Federal Government contribution to the National Social Insurance Trust Fund (NSITF) into the payroll templates of MDAs for preparation of 2026 Budget in compliance with the Federal Executive Council Order EC (2023)230.”

A further perusal of the guidelines for the validation of the payroll directed to Heads of MDAs and accounting officers are as follows: Ensure that personnel cost projections are realistic and align with relevant salary structure approved for your Sector/MDA, MDAs are required to use only the salary and allowances structure approved by the National Salaries, Incomes and Wages Commission(NSIWC)as applicable to your agency to validate the payroll; the non-regular allowances in the payroll should only be provided for those employees who are clearly entitled under their terms of service and circulars issued by NSIWC.

“You are advised to familiarise yourselves with your MDA’s approved salary and allowances structure for proper guidance. If in doubt, please contact the Chairman, National Salaries, Incomes and Wages Commission (NSIWC)”.



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