Fake agency: FG mandates MDAs to submit establishment acts for 2027 budget proposal approval

The Federal Government has directed all Ministries, Departments and Agencies (MDAs) to submit their establishment Acts alongside their 2027 personnel budget proposals, as it moves to prevent unestablished agencies from gaining entry into the federal budget.

The directive 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 document, obtained by Nairametrics from the website of the Budget Office of the Federation, warned that failure to provide the required establishment Act may lead to the rejection of an MDA’s budget proposal.

What the circular says

• “To further strengthen the budget preparation process and mitigate against any entry of unestablished agencies in the FGN Budget, it has become compulsory for MDAs to submit budget proposals along with their respective Establishment Acts as failure to do so, may lead to rejection,” the circular stated.

The requirement forms part of tighter controls introduced by the government for the preparation of the 2027 personnel budget, covering payroll validation, recruitment, promotions and staffing across MDAs.

FG tightens payroll controls

The Budget Office directed MDAs to ensure that salaries and allowances provided for in their personnel budgets are only for legitimate Federal Government employees, warning that unauthorised payments would attract sanctions.

• It also stated that no personnel cost provision would be made in the 2027 budget for any serving Federal Government employee who is not captured on the Integrated Payroll and Personnel Information System or enrolled on the Government Integrated Financial Management Information System, unless specifically exempted.
• New employees included in the 2027 payroll must be supported by the required financial clearance or first appointment letter and recruitment waiver or clearance.
• The government also barred MDAs from making provisions for anticipated promotions, stating that only promotions already approved and in effect should be reflected in their proposals. Funding for promotions taking effect in 2027 will instead be provided centrally under the Service-Wide Vote.

Consultants, contract staff, industrial attaches, outsourced service providers, legionnaires and youth corps members are also not to be included on MDA nominal rolls because they are not permanent and pensionable Federal Government employees.

Submissions of personnel budget proposals expected by September 18

MDAs are required to submit hard and soft copies of their 2027 personnel budget proposals to the Budget Office no later than 4:00 pm on Friday, September 18, 2026. Each page must be initialled by the minister or chief executive and accounting officer.

The government said the 2027-2029 draft Medium-Term Expenditure Framework and Fiscal Strategy Paper was concluded by July 2026 to facilitate submission of the 2027 budget to the National Assembly by September 2026.

The Budget Office will also deploy a centralised Personnel Cost Monitoring Dashboard linked to IPPIS and GIFMIS to track actual personnel expenditure against approved budgets in real time.

What you should know

The fake agency controversy first entered the public spotlight in June after the Office of the Chief of Staff to the President, Femi Gbajabiamila, issued a public disclaimer stating that the Presidential Foreign Intervention Promotion Council (PFIPC) did not exist under the Tinubu administration and that no appointment had been made for anyone to head such an organisation.

• President Bola Tinubu directed the ICPC to investigate the PFIPC after allegations emerged that forged appointment letters and other government documents were used to create the impression of a legitimate federal agency.
• The commission was tasked with tracing funds connected to the alleged scheme, identifying any public officials, financial institutions or intermediaries who may have facilitated its activities, and recommending reforms to address institutional vulnerabilities. Ministries, departments and agencies were instructed to cooperate with the investigation.

The controversy also raised questions about a reported N1.3 billion appropriation linked to the PFIPC.

However, the Budget Office of the Federation later clarified that the appropriation never became actual government expenditure because the necessary payroll, cash release and procurement processes were not completed.