PFICP scandal: How ₦1.3bn ‘fake agency’ traced to Buhari’s government entered 2026 budget

PFICP scandal: How ₦1.3bn ‘fake agency’ traced to Buhari’s government entered 2026 budget 

The Budget Office of the Federation has disclosed that the controversial Presidential Foreign Intervention Promotion Council (PFIPC) — now declared fake and under investigation — originated from institutional records linked to the administration of the late former President Muhammadu Buhari. Director-General of the Budget Office, Tanimu Yakubu, made this known while appearing before the House of Representatives Ad-hoc Committee investigating the matter. He explained that although ₦1.302 billion was appropriated for the council in the 2026 budget, not a single kobo was released because statutory spending controls prevented the funds from ever being accessed.

Providing a detailed account of how the PFIPC found its way into the 2026 budget, Yakubu traced the council’s institutional origin to the Presidential Economic Advisory Council (PEAC), which President Buhari inaugurated on October 9, 2019. By the time the 2026 budget preparations began, official government instruments had already been issued by key institutions. The Office of the Accountant-General of the Federation had assigned an administrative budget code to the PFIPC, while the Office of the Head of the Civil Service of the Federation had approved an authorised establishment and a recruitment waiver. Yakubu emphasised that the Budget Office did not create the council or approve its establishment — it merely acted on official documents received from other government institutions. In his words, “The Budget Office did not create the Council. It did not assign its code. It did not approve its establishment. It did not grant its recruitment waiver. It received official instruments and did what the law required of it: it measured their fiscal effect.”

Giving a breakdown of how the ₦1.302 billion allocation was calculated, Yakubu disclosed that the PFIPC initially requested ₦3.85 billion for personnel costs, but the Budget Office independently calculated a reduced figure of ₦802,978,783. This amount, which represented 61.63 per cent of the total ₦1.302 billion appropriation, was based strictly on the authorised establishment, the approved recruitment waiver, the applicable public-service salary structure, and the extant costing methodology. The overhead component stood at ₦200 million, while capital expenditure was set at ₦300 million. Despite the full appropriation of ₦1.302 billion, not a single kobo was disbursed to the council.

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Explaining why the money was never released, Yakubu stated that despite the appropriation, the council could not access the funds because the Budget Office withheld Financial Clearance — the mandatory approval required before recruitment, payroll enrolment, or salary payments can commence. He clarified that two conditions remained incomplete: first, the 2026 Appropriation Bill only became law on March 31, 2026, meaning final clearance could not be issued before presidential assent; second, the National Salaries, Incomes and Wages Commission had not confirmed that the proposed staffing and remuneration arrangements complied with the approved public-service compensation framework. Yakubu stressed that “There was no Financial Clearance. There was no lawful recruitment. There was no payroll enrollment. There was no salary payment. Not one kobo of the personnel provision could lawfully have been drawn. Not one kobo was drawn.” The overhead allocation of ₦200 million could not be released because it required treasury warrants and cash backing from the Federal Ministry of Finance, while the capital allocation of ₦300 million never progressed beyond appropriation because no procurement plan was initiated, no tenders board approved any project, and no Certificate of No Objection was issued by the Bureau of Public Procurement.

The scandal surrounding how a ‘fake agency’ gained official recognition became public on June 11, 2026, when the Chief of Staff to the President, Femi Gbajabiamila, declared the council fake and petitioned law enforcement agencies. Subsequent investigations revealed that the PFIPC had secured office space within the Federal Secretariat in Abuja, that the Central Bank of Nigeria opened two foreign currency accounts — one in US dollars and another in British pounds — on the directive of the Office of the Accountant-General, and that the agency was listed in the 2026 Appropriation Act with a budget of ₦1.302 billion. It was also discovered that the self-declared Director-General, Prince Adeniyi Adeyemi Matthew, presented forged appointment letters and falsely claimed to be a presidential appointee. On July 7, 2026, President Bola Tinubu directed the Independent Corrupt Practices and Other Related Offences Commission (ICPC) to conduct a thorough investigation and submit a report within 30 days.

In the midst of counterclaims and the ongoing investigation, before his arrest, Adeniyi Adeyemi alleged that Gbajabiamila received ₦400 million through a proxy and demanded an additional ₦200 million to secure his appointment. The Chief of Staff has denied the allegations and filed a defamation suit seeking ₦15 billion in damages. The ICPC investigation is now examining forged appointment letters and official documents, the use of false presidential claims to obtain official recognition and diplomatic support, the opening of multiple bank accounts using allegedly forged documents, the role of public officers, private individuals, and financial institutions that may have facilitated the scheme, as well as broader weaknesses in government procedures that may have been exploited. The Budget Office has maintained that the episode demonstrates the strength of Nigeria’s public financial management system, as the controls held firm and prevented any actual loss of public funds.

PFICP scandal: How ₦1.3bn ‘fake agency’ traced to Buhari’s government entered 2026 budget