The Nationwide Id Administration Fee (NIMC) and 9 different federal ministries, departments and businesses (MDAs) are set to spend about N24 billion on software-related initiatives this 12 months.
That is in line with particulars from the Federal Authorities’s 2026 Appropriation Invoice.
Whereas a complete of 115 MDAs have been budgeted for software program acquisition for the 12 months, these 10 got here prime as the largest spenders, with allocations throughout id administration, schooling, mining, cybersecurity, well being, finance, and immigration.
Nonetheless, the massive allocation additionally comes amid issues over perennial wastages and widespread abuse of IT procurement processes by MDAs.
What the info is saying
Knowledge from the appropriation invoice reveals that NIMC alone accounts for the one largest software program allocation among the many 10 MDAs with the biggest allocation for software program.
In keeping with the funds breakdown, NIMC is anticipated to spend N7.58 billion on software program in 2026, the best allocation among the many MDAs.
That is adopted intently by the Federal Ministry of Training (Headquarters), which has a proposed software program funds of N7.55 billion, reflecting elevated digitisation efforts in schooling administration and information programs.
- Different notable allocations embrace the Mining Cadastral Workplace, which is about to spend N2.23 billion, and the Geological Survey Company of Nigeria, with N1.32 billion earmarked for software program.
- The Nationwide Cybercrime Coordination Centre (NCCC) is allotted N1.26 billion, reinforcing the federal government’s push to strengthen cybersecurity coordination and digital crime prevention.
- Within the well being sector, the Nigeria Centre for Illness Management (NCDC), Abuja, has N1.23 billion budgeted for software program, whereas the Federal Ministry of Finance (Headquarters) is anticipated to spend N1.09 billion.
- The Nigeria Immigration Service has a proposed allocation of N1.01 billion, and the Finances Workplace of the Federation rounds out the record with N827.14 million.
Issues over the annual funds for software program
A number of stakeholders within the Nigerian ICT business have expressed issues over the annual apply of budgeting billions for software program by (MDAs of the federal government with out commensurate enchancment of their companies to the folks.
The Nationwide Data Expertise Growth Company (NITDA) additionally confirmed this fear just lately, noting that billions of naira are being pushed by MDAs by means of IT initiatives as a result of they’re too technical to be scrutinized by the Nationwide Meeting in the course of the funds defence.
Final 12 months, NITDA revealed that 56% of IT initiatives executed by Federal Public Establishments (FPIs) have failed, citing poor compliance with the company’s IT Mission Clearance Pointers as a significant motive.
“These initiatives fail as a result of they aren’t cleared to make sure alignment with nationwide requirements and priorities. We should cease losing public funds on fragmented, uncoordinated IT programs that don’t ship worth,” Inuwa said.
The Director-Common of the Bureau of Public Procurement (BPP), Dr. Adebowale Adedokun, corroborated this, including that MDAs disguise below IT initiatives to siphon funds.
“Most IT initiatives are intangible, and a few MDAs use them as a canopy to siphon public funds,” Adedokun stated.
“We’ve seen initiatives introduced with out standardisation, which results in inefficiencies and corruption,” he added.
Choice for overseas software program
An IT knowledgeable, Mr. Adewale Adeoye, stated the nation’s economic system might have benefited from the annual funds for software program by the federal government if half of the cash are spent on native software program.
“One main downside with the annual funds for software program by the MDAs is that the cash isn’t being pumped into the economic system.
“Many of the businesses nonetheless want to import software program even in circumstances the place there are regionally developed ones that would do the identical factor,” he stated.
Adeoye added that a lot of the funds that would have been used to encourage native builders and develop the nation’s software program business are going into different nations as they proceed to import software program.
In keeping with the Institute of Software program Practitioners of Nigeria (ISPON), Nigeria loses N156 billion yearly to software program importation, and the institute believes that is being fuelled by MDAs with their penchant for the acquisition of overseas software program.
Strikes to cease wastage
To curb the wastage by means of IT initiatives, the BPP DG stated the Bureau has launched normal bidding paperwork for IT procurement and pledged to work intently with NITDA to make sure transparency, keep away from duplication of efforts, and get rid of waste in IT spending.
- Adedokun additionally advisable that NITDA discover service-wide procurement of software program licenses, significantly for world distributors like Microsoft and Oracle, to chop prices and forestall contract inflation.
- He additional urged the event of a nationwide IT worth intelligence template to assist benchmark prices.
“We’ve got a accountability to cease the misuse of sources that might be higher deployed to satisfy different nationwide wants.
“With correct coordination and standardisation, we are able to flip IT from a legal responsibility into a strong asset for nationwide growth,” Adedokun stated.
What it is best to know
NITDA first launched its Guideline for IT Mission Clearance in 2018 as a device to make sure federal IT initiatives ship worth and assist Nigeria’s digital transformation objectives.
- Final 12 months, the company revised the Guideline with emphasis on interoperability, cost-effectiveness, transparency, and compliance with nationwide digital economic system objectives.
- The revised pointers introduce a three-step implementation framework—Resolution Design, Implementation, and High quality Assurance.
- It additionally mandates that contractors should be licensed and make use of licensed professionals throughout these phases earlier than they will qualify for presidency IT contracts.
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