Federal universities personnel cost rise as Nigeria approves a 40% salary increase and new allowances, pushing allocations sharply higher in 2026

Personnel cost allocations to federal universities in Nigeria rose sharply in the 2026 budget 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.

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An analysis of the Federal Government’s 2026 budget estimates shows that personnel allocations to the top 20 federal universities increased from N438.85bn in 2025 to N533.1bn in 2026, representing a rise of N94.25bn, or about 22 per cent within one fiscal year.

The increase follows a breakthrough agreement reached this week between the Federal Government and the Academic Staff Union of Universities (ASUU), ending a 16-year deadlock over the renegotiation of the 2009 FGN–ASUU agreement.

The deal has raised expectations of improved welfare, funding stability and industrial harmony across Nigeria’s public university system.

Under the agreement, lecturers in federal institutions will receive a 40 per cent salary increase, alongside the introduction of a new professorial cadre allowance, which will grant professors a monthly top-up of over N140,000.

The Minister of Education, Dr Tunji Alausa, said the government had already made provisions to fund the enhanced remuneration package.

Speaking on Channels Television’s Politics Today on Thursday, Alausa said the funding covered both salary adjustments and the restructuring of academic allowances.

“A professor will now receive a monthly top-up of over N140,000, as President Tinubu has approved a new category of allowance for academic staff,” he said, adding that the government also had funds to support nine newly structured Earned Academic Allowances.

In the 2026 Appropriation Bill, the Federal Government allocated N3.52tn to education, representing 6.1 per cent of the proposed N58.18tn national budget.

The allocation includes N113.764bn for targeted education interventions, N42bn for the National Home Grown School Feeding Programme, and N35bn to address the out-of-school children crisis.

Other education-related allocations include N28bn for security infrastructure across 118 Federal Unity Colleges and N5.2bn for the upkeep of 1,532 Nigerian students abroad under the Bilateral Education Programme.

Within the federal budgeting framework, personnel costs form a major component of recurrent expenditure, covering salaries, allowances, pensions and gratuities.

These payments are centrally managed through the Integrated Personnel and Payroll Information System, designed to verify staff records and ensure timely remuneration.

Budget data from the Budget Office shows significant personnel cost increases across leading federal universities, including the University of Ibadan, Ahmadu Bello University, University of Lagos, University of Nigeria, Nsukka, and Obafemi Awolowo University, among others.

The University of Ibadan recorded the highest increase, with personnel costs rising from N25.13bn in 2025 to N37.52bn in 2026, an increase of about N12.4bn. Ahmadu Bello University followed, with its allocation increasing by N10.5bn to N44.5bn.

Other notable increases were recorded by the University of Jos, University of Calabar, University of Ilorin, University of Maiduguri, and Nnamdi Azikiwe University, reflecting the broad fiscal impact of the new wage structure.

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When contacted for clarification on the higher allocations, the Director of Press and Public Relations at the Federal Ministry of Education, Boriowo Folasade, said she would respond, but no further comment had been received as of press time.