Budget proposal: FG mandates MDAs to submit establishment

The Federal Government has mandated all Ministries, Departments and Agencies (MDAs) to submit their Establishment Acts alongside their personnel budget proposals for the year 2027. This directive, which was issued on September 4, 2026, is part of a broader effort to strengthen the budget preparation process and ensure that only legitimate federal government employees are included in the budget.

The Budget Office of the Federation, through its Director-General Tanimu Yakubu, emphasized that the submission of Establishment Acts is crucial to prevent the rejection of an MDA's budget proposal. The circular warns that MDAs failing to comply with this requirement may face rejection of their budget proposals. This move is part of tighter controls implemented by the government to regulate payroll validation, recruitment, promotions, and staffing across various MDAs.

The directive also stipulates that salaries and allowances in the personnel budgets should only be allocated to employees who are officially recognized by the Integrated Payroll and Personnel Information System and the Government Integrated Financial Management Information System. Furthermore, any new employees to be included in the 2027 payroll will need to present financial clearance or a first appointment letter, along with a recruitment waiver or clearance.

The government also clarified that MDAs should not include provisions for anticipated promotions in their budget proposals, as only approved and current promotions should be reflected. Instead, funding for promotions taking effect in 2027 will be centrally provided under the Service-Wide Vote.