The Budget Office stated that PEAC/PFIPC was captured in the budget following official government approvals, including an administrative budget code.
By Mmesoma Onwuka
365Daily – The Budget Office of the Federation has maintained that no public funds were released, spent or diverted under the Presidential Economic Advisory Council/Presidential Foreign Intervention Promotion Council (PEAC/PFIPC), despite the council’s inclusion in the 2026 Appropriation Act.
This position was presented by the Director General of the Budget Office, Mr Tanimu Yakubu, during an appearance before the House of Representatives Ad hoc Committee investigating the establishment and budgetary provisions of the council on Friday.
According to the Budget Office, public discussions surrounding the matter have largely focused on the appropriation itself, rather than the processes required before any government funds can be accessed or spent.
The office explained that while the National Assembly appropriated funds for the council, appropriation alone does not amount to the release of money. It noted that several statutory approvals, including recruitment clearance, payroll enrolment, treasury warrants, cash backing and procurement approvals, must be obtained before any expenditure can occur.
The Budget Office stated that PEAC/PFIPC was captured in the budget following official government approvals, including an administrative budget code, establishment approval and recruitment waiver issued by relevant authorities. However, it stressed that its role was limited to assessing the fiscal implications of those approvals.
It further disclosed that although the council requested about N3.85 billion for personnel costs, the Budget Office independently reviewed the proposal and approved a personnel provision of N802.98 million based on authorised staffing structures and applicable public service salary frameworks.
Despite the appropriation, the office said the mandatory Financial Clearance required for recruitment and salary payments was never issued because key regulatory requirements remained outstanding.
As a result, no recruitment process commenced, no staff members were placed on the federal payroll and no salaries were paid.
The Budget Office also clarified that the ₦200 million overhead allocation never translated into a cash release. It explained that overhead funds can only be accessed after treasury warrants are issued and cash backing is provided.
Following concerns over the legal status of the council, the office said it formally requested the Federal Ministry of Finance and the Office of the Accountant General of the Federation to suspend all payment processes relating to the body.
Similarly, the N300 million capital allocation never advanced to the procurement stage, as none of the statutory approvals required under the Public Procurement Act were obtained.
According to the Budget Office, no procurement contracts were approved, no Certificate of No Objection was issued and no treasury releases were made.
The office maintained that the safeguards built into Nigeria’s public finance system worked effectively in this case, preventing any expenditure from taking place.
It therefore concluded that the personnel allocation never became payroll expenditure, the overhead provision never became a cash entitlement and the capital allocation never resulted in procurement or project spending.
The Director General told lawmakers that there is no expenditure to recover because no funds were disbursed at any stage, adding that the Budget Office remains committed to cooperating fully with the House committee’s investigation.