Budgetary allocations for personnel costs in federal universities have recorded a significant increase following the Federal Government’s approval of a 40 per cent salary increase for academic staff and the introduction of new and enhanced allowance packages.
Findings from the Federal Government’s 2026 budget estimates show that personnel allocations to the top 20 federal universities rose from ₦438.85 billion in 2025 to ₦533.1 billion in 2026, representing an increase of ₦94.25 billion, or about 22 per cent within one fiscal year.
The increase comes on the heels of a landmark agreement reached on Wednesday between the Federal Government and the Academic Staff Union of Universities (ASUU), which resolved a 16-year stalemate over the renegotiation of the 2009 FGN–ASUU agreement. The deal has raised expectations of improved staff welfare, funding stability and sustained industrial harmony in Nigeria’s university system.
Under the agreement, the Federal Government approved a 40 per cent salary increase for lecturers across federal institutions, alongside the introduction of a new professorial cadre allowance. The new allowance will see professors receive a monthly top-up of over ₦140,000.
The Minister of Education, Dr Tunji Alausa, said the government had made adequate provisions to fund the enhanced remuneration package. Speaking on Channels Television’s Politics Today on Thursday, Alausa explained that the funding covers both the salary increment and the restructuring of academic allowances.
“A professor will now receive a monthly top-up of over ₦140,000, as President Bola Tinubu has approved a new category of allowance for academic staff, known as the professorial cadre allowance,” he said. “We also have the funding to support the 40 per cent salary increase granted to lecturers across all institutions, as well as the nine enhanced Earned Academic Allowances, which are now properly structured.”
He added that the allowances captured in the agreement had been clearly defined, addressing long-standing demands by the lecturers’ union.
In the 2026 budget, the Federal Government allocated ₦3.52 trillion to the education sector, representing 6.1 per cent of the ₦58.18 trillion national budget. A breakdown of the allocation shows that ₦113.76 billion was earmarked for targeted education interventions, ₦42 billion for the National Home-Grown School Feeding Programme and ₦35 billion to address the out-of-school children crisis.
Other allocations include ₦28 billion for security infrastructure across 118 Federal Unity Colleges and ₦5.2 billion for the upkeep of 1,532 Nigerian students studying abroad under the Bilateral Education Programme.
An analysis of personnel cost allocations revealed notable increases across leading federal universities. The University of Ibadan recorded the highest rise, with personnel costs increasing from ₦25.13 billion in 2025 to ₦37.52 billion in 2026, a jump of about ₦12.4 billion.
Ahmadu Bello University followed with an increase from ₦34 billion to ₦44.5 billion, representing a rise of ₦10.5 billion. Other institutions that recorded increases include the University of Lagos, University of Nigeria Nsukka, Obafemi Awolowo University, University of Benin, University of Jos, University of Calabar, University of Ilorin, University of Abuja and the University of Port Harcourt.
Further adjustments were also recorded for Abubakar Tafawa Balewa University, the Federal Universities of Technology in Owerri and Akure, Modibbo Adama University, University of Uyo, University of Maiduguri, Nnamdi Azikiwe University, Bayero University Kano and Usman Dan Fodio University, Sokoto.
Personnel costs, also known as personnel emoluments, form a major component of recurrent expenditure in the federal budgeting system. They cover salaries, allowances, pensions and gratuities, and are centrally managed through the Integrated Personnel and Payroll Information System to ensure verification of staff records and timely payments.
When contacted for clarification on the higher personnel allocations, the Director of Press and Public Relations at the Federal Ministry of Education, Boriowo Folasade, said she would respond, but had yet to do so as of the time of filing this report.
