FG Tightens Payroll Verification for New Workers as Personnel Spending Hits N1.96tn

The Federal Government has introduced stricter verification requirements for newly recruited public servants seeking enrolment on its payroll, following an increase in personnel expenditure to N1.96tn in the first quarter of 2026.

The new directive, announced by the Office of the Accountant-General of the Federation (OAGF), takes immediate effect and applies to all ongoing and future payroll admission processes under the Integrated Personnel and Payroll Information System (IPPIS).

In a statement signed by its Director of Press and Public Relations, Bawa Mokwa, the OAGF said newly recruited employees must first be captured on the nominal roll of their respective Ministries, Departments and Agencies (MDAs) before they can be considered for payroll enrolment.

The office added that all recruits must satisfy prescribed verification and eligibility requirements before their details are approved for inclusion in the federal payroll system.

Under the new guidelines, MDAs seeking to enrol newly recruited workers must submit formal applications supported by recruitment approvals, appointment letters, applicable waivers and other relevant documents.

The verification process will also cover salary structures, grade levels, salary steps, allowances and other financial entitlements. Employees will equally be required to provide statutory details, including pension identification numbers, Pension Fund Administrator information, National Housing Fund registration and tax records.

The government warned that applications containing incomplete documentation or unresolved discrepancies would be withheld until all requirements were fulfilled.

It further directed that employee records must be endorsed by the relevant Accounting Officer, Director of Human Resources, Director of Finance and Accounts, and designated Payroll Validating Officer before receiving final approval from the Accountant-General of the Federation.

The stricter measures come amid growing government personnel costs. An analysis of the Federal Government’s first-quarter budget implementation reports showed that personnel expenditure increased from N1.82tn in the first quarter of 2025 to N1.96tn in the corresponding period of 2026.

The N133.94bn increase represents a 7.35 per cent rise in personnel spending within one year.

The 2026 report also showed that personnel expenditure exceeded capital spending, which stood at N1.69tn, by approximately N267bn. Personnel costs accounted for 20.05 per cent of the Federal Government’s total expenditure of N9.76tn during the quarter.

Further breakdown showed that personnel spending by MDAs rose from N1.57tn to N1.70tn, while Government-Owned Enterprises recorded unchanged personnel expenditure of N254.35bn.

Meanwhile, the Federal Government generated approximately N5.08tn in revenue against a quarterly target of N9.22tn, representing a shortfall of 44.93 per cent.

Debt servicing consumed N4.63tn, equivalent to about 91.18 per cent of actual revenue, while the government recorded a fiscal deficit of N4.69tn during the period.

The Budget Office had identified restrictions on unapproved recruitment by MDAs and the requirement for prior clearance before recruitment and payroll enrolment as measures aimed at controlling recurrent expenditure.

The latest payroll restrictions also come as the Federal Government prepares to introduce a monthly N70,000 transport allowance for public servants from November, following discussions with the Nigeria Labour Congress.

The allowance is expected to run for six months, although the government has yet to disclose the number of beneficiaries or the total cost of the intervention.

Reacting to the rising personnel expenditure, economist and Chief Executive Officer of CSA Advisory, Dr Aliyu Ilias, warned that allowing personnel costs to exceed capital expenditure could undermine investment in critical infrastructure.

He urged the government to prioritise capital projects, particularly in education, healthcare and transportation, stressing that investment in social infrastructure remains essential to national development.