Personnel cost allocations for some federal universities in Nigeria have risen 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, according to findings.

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

The development comes shortly after the Federal Government and the Academic Staff Union of Universities (ASUU) reached a landmark agreement on Wednesday, ending a 16-year deadlock over the renegotiation of the 2009 FGN–ASUU agreement. The agreement is expected to improve welfare, funding stability, and industrial harmony in the nation’s university system.

Salary Boost and New Allowances Drive Budget Increase

As part of the agreement, the Federal Government approved a 40 per cent salary increase for lecturers across federal institutions and introduced a new professorial cadre allowance, which will provide university professors with a monthly top-up of over N140,000.

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

Speaking on Channels Television’s Politics Today on Thursday, Alausa said the funding covered both the salary adjustment and the restructuring of academic allowances. He said,
“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, known as the professorial cadre allowance, which is an enhanced additional package.
Today, we have the funding to support the 40 per cent salary increase granted to our lecturers across all institutions, as well as the nine enhanced Earned Academic Allowances, which are now properly structured.”

He added that the allowances captured under the agreement had been clearly defined, addressing long-standing demands by the lecturers’ union.

Education Budget Set at N3.52tn

In the 2026 budget, the Federal Government allocated N3.52tn to education, representing 6.1 per cent of the N58.18tn national budget.
A breakdown of the education vote showed:

  • N113.764bn for major targeted education interventions
  • N42bn for the National Home Grown School Feeding Programme
  • N35bn to tackle the out-of-school children crisis
  • N28bn for security infrastructure across the 118 Federal Unity Colleges
  • N5.2bn for the upkeep of 1,532 Nigerian students studying abroad under the Bilateral Education Programme

Personnel Costs Rise Across Leading Federal Universities

Personnel costs, also known as personnel emoluments, form a major component of recurrent expenditure for Ministries, Departments and Agencies, including the Federal Ministry of Education. The costs cover salaries, allowances, pensions, gratuities and related expenses, and are managed through the Integrated Personnel and Payroll Information System (IPPIS).

Although the detailed recurrent and capital expenditure components of the education vote are yet to be fully disclosed, an analysis of the Ministry of Education’s 2026 allocations accessed via the Budget Office showed a marked increase in personnel costs across leading federal universities.

The institutions reviewed include the University of Ibadan, University of Lagos, University of Nigeria, Nsukka, Ahmadu Bello University, Obafemi Awolowo University, University of Benin, University of Jos, University of Calabar, University of Ilorin, University of Abuja, University of Port Harcourt, Abubakar Tafawa Balewa University, Federal University of Technology, Owerri, Federal University of Technology, Akure, Modibbo Adama University, University of Uyo, University of Maiduguri, Nnamdi Azikiwe University, Bayero University, and Usman Dan Fodio University, Sokoto.

Of the institutions reviewed, the University of Ibadan recorded the highest increase, with personnel costs rising from N25.13bn in 2025 to N37.52bn in 2026, a jump of about N12.4bn.
Ahmadu Bello University followed with an increase from N34bn to N44.5bn, reflecting a N10.5bn rise, or roughly 31 per cent.

Other institutions also recorded significant increases, including:

  • UNILAG: +N1.32bn
  • UNN: +N6bn
  • OAU: +N2.2bn
  • UNIBEN: +N3.16bn
  • UNIJOS: +N9.2bn
  • UNICAL: +N5.5bn
  • UNILORIN: +N5.26bn
  • UNIABUJA: +N3.5bn
  • UNIPORT: +N2.3bn
  • ATBU: +N4.87bn
  • FUTO, Owerri: +N5.24bn
  • FUTA: +N1.5bn
  • Modibbo Adama University: +N720m
  • UNIUYO: +N211m
  • UNIMAID: +N6.2bn
  • NAU: +N6bn
  • Bayero University: +N4.6bn
  • Usman Dan Fodio University: +N3.47bn