The origin of Pay and Accounting Group (PAG) dates back to 1962 when the idea of establishing an air force was concretised.
The Ministry of Defence funded the Nigerian Air Force at inception through the Nigerian Army. Therefore, the financial administration of the Service rested with the Nigerian Army, which had an established, Pay and Records Office.
The present PAG was thus, started as a section under the Nigerian Army Pay and Records Office, Apapa. The first set of NAF pay personnel trained by the Nigerian Army assumed duty in the Ground Training Group Kaduna in 1965 under the supervision of the Nigerian Army Assistance Group. The current Pay Office at the 335 Base Services Group, Kaduna thus became the first Pay Office in the Nigerian Air Force.
By 1969, the Nigerian Air Force Pay and Records Office was established at 75 Airport Road, Ikeja. An army officer, Major SS Adejoro was appointed as the first Commanding Officer. The office was later relocated to Idiroko, Maryland and subsequently to its present location at Sam Ethnan Air Force Base Ikeja in 1971.
Squadron Leader Y Abba was the first Nigerian Air Force Officer to head the NAF Pay and Records in 1971. In due course, the Nigerian Air Force became a self-accounting entity on 1 April 1972, when the Service assumed full control of its accounting records.
The Group comprise of a headquarters and 4 wings, which include Personnel Emolument, Bills and Recovery, Inspectorate and Civilian Pay. An Assistant Director, who represents the Office of the Accountant General of the Federation, heads the Civilian Pay Wing. In addition to the 4 wings, there is the office of the Federal Auditor, which though co-located with PAG, reports directly to the Auditor General of the Federation. The Federal Auditor advises the Commander on all matters relating to audit queries.