Kaduna Weighs Reclassifying Teachers’, Health Workers’ Salaries as Capital Expenditure

By Uangbaoje Alex, Kaduna

Stakeholders in Kaduna State have begun critical deliberations on a proposed shift to reclassify salaries of teachers and healthcare workers from recurrent to capital expenditure, a move seen as both innovative and potentially transformative for human capital development.

The discussion formed the centerpiece of a one-day strategic stakeholders’ dialogue organised by the Kaduna State Planning and Budget Commission with support from the United Nations Children’s Fund (UNICEF).

Welcoming participants, the Commissioner for Planning and Budget Commission, Mukhtar Ahmed, described the dialogue as a timely opportunity to rethink public finance priorities in line with global thinking that places people at the centre of development.

Quoting renowned economist Gary Becker, he said investment in human capital remains the most critical driver of sustainable growth, noting that the proposal to reclassify salaries aligns with this philosophy.

“Traditionally, salaries of teachers and healthcare workers have been treated as recurrent expenditure,” Ahmed said. “However, UNICEF has presented a compelling case that these individuals should be seen as capital assets who drive human development and economic growth.”

He noted that while the state government acknowledges the potential benefits of the proposal, including improved funding stability and service delivery, it is approaching the idea with caution due to possible implications for fiscal policy and budgeting frameworks.

“This is not about resistance but careful consideration. We must reconcile innovative thinking with sound financial management practices,” he added.

Also speaking, Chairman of the Kaduna State House of Assembly Committee on Judiciary and Primary Health, Emmanuel Kantiok, emphasised that the legislature would play its role at the final stage of the process.

“The legislature is the last clearing house after all relevant ministries, departments, and agencies have completed their work. Then it comes to us, probably for legislation,” he explained.

Kantiok described the idea as promising but stressed that its success would depend largely on implementation.

“If the intention is to prioritise teachers’ welfare, facilities, and capacity building, and this approach helps achieve that, then it is a good idea. But there is still a lot of work to be done,” he said.

On her part, UNICEF’s Chief of Field Office in Kaduna, Dr. Gerida Birukila, strongly advocated for the reclassification, arguing that it would ensure more reliable funding for critical sectors.

She said the current system does not adequately reflect the importance of sustained investment in teachers and healthcare workers.

“Reclassifying salaries as capital expenditure will improve reliability of funding and ensure that salaries are paid on time.

“It also signals stronger investment in education and health systems,” Birukila said.

She added that UNICEF is already working closely with the state government and other stakeholders, including lawmakers and regulators, to advance the process.

“We are on the right track, and we expect progress soon. This reform will also help attract and retain qualified professionals in both sectors,” she noted.

However, technical experts have urged caution, highlighting potential risks associated with the proposal.

Kaduna State Team Lead of Partnership for Agile Governance and Climate Engagement (PACE), Ashiru Sani, pointed to several public financial management concerns that must be addressed before implementation.

He warned that moving salaries into capital expenditure could subject them to stricter processes and controls typically associated with capital projects, potentially leading to delays.

“Capital expenditure is tied to processes such as approvals and compliance requirements. If salaries are moved into that category, payments could face bottlenecks, which defeats the purpose of the reform,” Sani said.

He also raised concerns about sustainability, noting that capital budgets are usually project-based and time-bound, unlike recurrent expenditure designed for continuous obligations like salaries.

“There are also conceptual issues, as salaries are not traditionally classified as capital expenditure under standard public financial management frameworks,” he added.

Sani further cautioned that such a shift could distort fiscal planning and accountability systems if not carefully designed and implemented.

Despite these concerns, he expressed support for the intention behind the proposal, calling for a gradual and well-coordinated approach.

“The key is to address these challenges incrementally while ensuring that teachers and health workers receive the attention they deserve,” he said.