The Federal Government plans to submit its 2027 Appropriation Bill to the National Assembly in September, signalling an attempt to move Nigeria towards a more predictable budget calendar and reduce the recurring problem of overlapping fiscal years.
The plan is contained in the 2027 Personnel Costs Budget Call Circular, dated September 4, 2026, and signed by the Director-General of the Budget Office of the Federation, Tanimu Yakubu.
The circular provides ministries, departments and agencies (MDAs) with instructions for preparing their personnel-cost proposals for the 2027 fiscal year.
MTEF already completed
According to the Budget Office, the draft 2027–2029 Medium-Term Expenditure Framework and Fiscal Strategy Paper had been completed in July.
The early completion was intended to facilitate the submission of the 2027 budget to lawmakers in September, in line with the government’s stated objective of improving the budget cycle.
The circular did not specify the exact date on which President Bola Tinubu would present the budget to the National Assembly.
However, the timetable points to a presentation roughly three months before the beginning of the 2027 fiscal year.
MDAs given September 18 deadline
As part of preparations, the Budget Office has set 4pm on Friday, September 18, 2026, as the deadline for MDAs to submit their 2027 personnel budget proposals.
The agencies are required to submit both hard and electronic copies together with supporting information.
The government is also introducing stricter requirements aimed at preventing questionable agencies from being included in the national budget.
MDAs must submit copies of the laws establishing them alongside their budget proposals.
Failure to provide the required documentation could result in rejection of the agency’s submission.
Lessons from fake-agency controversy
The tighter requirement follows the controversy surrounding the inclusion of the Presidential Foreign Intervention Promotion Council (PFIPC) in the 2026 budget.
The agency received approximately N1.3 billion despite questions over its legal existence.
The House of Representatives investigated the matter, while President Tinubu ordered a forensic investigation into the processes and internal controls that allowed the questionable agency to appear in the budget.
The ICPC subsequently reported that the purported agency had no legal backing and recommended prosecution and disciplinary measures against individuals allegedly involved.
The new budget requirement is therefore intended to ensure that agencies requesting public funds can demonstrate a valid legal foundation.
Tighter payroll controls
The circular also introduces additional controls over federal personnel spending.
MDAs have been directed to ensure that salaries and allowances are budgeted only for legitimate Federal Government employees.
They must validate payroll information against the Integrated Personnel and Payroll Information System (IPPIS) and the Government Integrated Financial Management Information System (GIFMIS).
The government also said no personnel-cost provision should be made for serving federal employees who are not captured on the relevant payroll systems unless they have been specifically exempted.
MDAs are required to use approved salary structures and verify employees’ grade levels and steps.
Promotions and recruitment
The circular further bars MDAs from budgeting for promotions that have not yet taken effect.
Only promotions already approved and in force are to be reflected in the 2027 personnel budget.
Provisions for promotions that will take effect during 2027 will instead be handled centrally under the Service-Wide Vote and reflected in subsequent budget planning.
The government has also tightened controls around recruitment.
MDAs seeking to provide for new employees must submit supporting documentation, including financial clearance, letters of first appointment and relevant recruitment approvals or waivers.
The Budget Office warned that it would not entertain salary-shortfall claims arising from unauthorised recruitment.
Outsourced workers and consultants
The reforms extend to outsourced workers, consultants and other non-permanent personnel.
The circular states that outsourced service providers must not be placed on MDAs’ nominal payrolls.
It also prohibits multiple federal institutions from capturing the same consultant or lecturer on their nominal rolls.
Where duplication is detected, the individual will be removed from the payrolls of institutions other than their primary place of employment.
The rules are particularly relevant to the health and education sectors, where federal institutions often rely on interns, consultants and other categories of non-permanent workers.
Why the September target matters
Nigeria has struggled with delayed budget passage and implementation, with overlapping fiscal years becoming a recurring feature in recent years.
The government has linked some implementation difficulties to differences in assumptions over crude oil prices, oil production, exchange rates, inflation and non-oil revenues.
An earlier budget submission could give lawmakers more time to scrutinise spending plans and allow government agencies to begin implementation closer to the start of the fiscal year.
But the effectiveness of the reform will ultimately depend on whether the budget is passed on time, signed into law and implemented without the delays that have historically weakened Nigeria’s fiscal planning.
The 2027 budget is also likely to attract heightened scrutiny because it will cover a major election year.
How the Federal Government balances recurrent expenditure, infrastructure, debt servicing, security and social programmes will be closely watched as the country approaches the 2027 general elections.