THE North-East Development Commission will spend N244.06 billion of its N246.76 billion 2026 proposed budget on personnel costs.
This represents 98.9 per cent of the total budget for the commission in the financial year.
Consequently, the commission will spend the remaining N2.7 billion on capital projects, representing 1.1 per cent of the total budget.
The ICIR reports that with almost virtually all it funding going into salaries and other welfare packages, the commission will be unable to achieve the goals for which it was set up.
“The commission is charged with the responsibility of, among other things, receiving and managing funds allocated by the Federal Government and international donors for the resettlement, rehabilitation, integration and reconstruction of roads, houses and business premises of victims of insurgency and terrorism, as well as tackling the menace of poverty, illiteracy, ecological problems and any other related environmental or developmental challenges in the North-East States, and for related matters,” the commission’s mandate reads on its website.
In Nigeria’s context, personnel costs often represent a significant portion of recurrent expenditures.
Personnel costs budget typically refers to the expenses related to employee compensation, benefits, and allowances. This includes salaries, wages, allowances, insurance benefits, pension contributions, training, and other benefits for employees.
The North-East region of Nigeria has been plagued by over a decade-long insurgency, led by Boko Haram, resulting in devastating humanitarian and economic consequences.
This has affected the economic development in the region, with hundreds of Internally Displaced Persons (IDP) camps spread across the region.
Though the attacks are abating, general insecurity has persisted inter-communal feuds, cropper-herder conflicts kidnappings, banditry, cattle rustling, among others have displaced thousands, disrupted livelihoods, and hindered access to essential services.
Notably, over two million people are internally displaced in Nigeria, with many facing food insecurity, malnutrition, and limited access to healthcare and education.
Accordingly, the region’s economy has been severely impacted, with widespread destruction of infrastructure, agriculture, and trade, leading to rising food inflation.
The North East region also posted some of Nigeria’s highest poverty rates, with limited access to education, healthcare, and economic opportunities.
The region is confronted with ecological challenges, such as desertification and climate change, worsening the vulnerabilities of residents.
Analysts believe that poor budget allocation to capital funding in the commission raises lots of questions about government’s determination to address key challenges in the North-East.
“This is not good enough. Was the commission created to pay salaries?” a development economist, Kalu Aja, queried.
It would be noted that Nigeria is struggling to fund the capital component of its budget, with its carryover of 70 per cent of its 2025 budget to 2026.
A large chunk of the nation’s budget is to be sourced from borrowing
Nigeria’s proposed 2026 budget includes a deficit of N20.1 trillion, which is approximately 36.9 per cent of the total spending plan of N54.43 trillion. To finance this deficit, the government plans to borrow around N17.89 trillion, with 80 per cent (N14.31 trillion) coming from domestic sources and 20 per cent (N3.58 trillion) from external creditors.
The country’s debt service burden is a significant concern, with N15.91 trillion allocated for debt servicing in 2026, accounting for 29.2 per cent of the total budget. This has raised concerns about debt sustainability and fiscal discipline.
A recurring trend
The heavy personnel-cost structure in the North-East Development Commission’s (NEDC) proposed 2026 budget mirrors a broader trend observed in the previous fiscal year.
An analysis of the Federal Government’s 2025 budget proposal by The ICIR showed that the five regional development commissions under the Ministry of Regional Development were collectively allocated about N2.5 trillion, with 99.7 per cent of the funds earmarked for personnel costs, leaving just 0.3 per cent for capital and development projects.
According to the 2025 breakdown, four of the five commissions proposed spending their entire allocations on salaries and overheads, while only the NEDC retained a marginal 2.2 per cent for non-personnel expenditure.
The Niger Delta Development Commission (NDDC) topped the list with N776.5 billion allocated fully to salaries, followed by the North-West Development Commission (NWDC) with N585.9 billion and the South-West Development Commission (SWDC) with N498.4 billion. The South-East Development Commission (SEDC) also earmarked N341.3 billion entirely for personnel expenses.
Harrison Edeh is a journalist with the International Centre for Investigative Reporting, always determined to drive advocacy for good governance through holding public officials and businesses accountable.