The National Identity Management Commission (NIMC) and nine other federal ministries, departments and agencies (MDAs) are set to spend about N24 billion on software-related projects this year.
This is according to details from the Federal Government’s 2026 Appropriation Bill.
While a total of 115 MDAs were budgeted for software acquisition for the year, these 10 came top as the biggest spenders, with allocations across identity management, education, mining, cybersecurity, health, finance, and immigration.
However, the huge allocation also comes amid concerns over perennial wastages and widespread abuse of IT procurement processes by MDAs.
What the data is saying
Data from the appropriation bill shows that NIMC alone accounts for the single largest software allocation among the 10 MDAs with the largest allocation for software.
According to the budget breakdown, NIMC is expected to spend N7.58 billion on software in 2026, the highest allocation among the MDAs.
This is followed closely by the Federal Ministry of Education (Headquarters), which has a proposed software budget of N7.55 billion, reflecting increased digitisation efforts in education administration and data systems.
- Other notable allocations include the Mining Cadastral Office, which is set to spend N2.23 billion, and the Geological Survey Agency of Nigeria, with N1.32 billion earmarked for software.
- The National Cybercrime Coordination Centre (NCCC) is allocated N1.26 billion, reinforcing the government’s push to strengthen cybersecurity coordination and digital crime prevention.
- In the health sector, the Nigeria Centre for Disease Control (NCDC), Abuja, has N1.23 billion budgeted for software, while the Federal Ministry of Finance (Headquarters) is expected to spend N1.09 billion.
- The Nigeria Immigration Service has a proposed allocation of N1.01 billion, and the Budget Office of the Federation rounds out the list with N827.14 million.
Concerns over the annual budget for software
Several stakeholders in the Nigerian ICT industry have expressed concerns over the annual practice of budgeting billions for software by (MDAs of the government without commensurate improvement in their services to the people.
The National Information Technology Development Agency (NITDA) also confirmed this worry recently, noting that billions of naira are being pushed by MDAs through IT projects because they are too technical to be scrutinized by the National Assembly during the budget defence.
Last year, NITDA revealed that 56% of IT projects executed by Federal Public Institutions (FPIs) have failed, citing poor compliance with the agency’s IT Project Clearance Guidelines as a major reason.
“These projects fail because they are not cleared to ensure alignment with national standards and priorities. We must stop wasting public funds on fragmented, uncoordinated IT systems that don’t deliver value,” Inuwa stated.
The Director-General of the Bureau of Public Procurement (BPP), Dr. Adebowale Adedokun, corroborated this, adding that MDAs hide under IT projects to siphon funds.
“Most IT projects are intangible, and some MDAs use them as a cover to siphon public funds,” Adedokun said.
“We’ve seen projects presented without standardisation, which leads to inefficiencies and corruption,” he added.
Preference for foreign software
An IT expert, Mr. Adewale Adeoye, said the country’s economy could have benefited from the annual budget for software by the government if half of the money are spent on local software.
“One major problem with the annual budget for software by the MDAs is that the money is not being pumped into the economy.
“Most of the agencies still prefer to import software even in cases where there are locally developed ones that could do the same thing,” he said.
Adeoye added that most of the funds that could have been used to encourage local developers and grow the country’s software industry are going into other countries as they continue to import software.
According to the Institute of Software Practitioners of Nigeria (ISPON), Nigeria loses N156 billion annually to software importation, and the institute believes this is being fuelled by MDAs with their penchant for the acquisition of foreign software.
Moves to stop wastage
To curb the wastage through IT projects, the BPP DG said the Bureau has introduced standard bidding documents for IT procurement and pledged to work closely with NITDA to ensure transparency, avoid duplication of efforts, and eliminate waste in IT spending.
- Adedokun also recommended that NITDA explore service-wide procurement of software licenses, particularly for global vendors like Microsoft and Oracle, to cut costs and prevent contract inflation.
- He further urged the development of a national IT price intelligence template to help benchmark costs.
“We have a responsibility to stop the misuse of resources that could be better deployed to meet other national needs.
“With proper coordination and standardisation, we can turn IT from a liability into a powerful asset for national development,” Adedokun said.
What you should know
NITDA first introduced its Guideline for IT Project Clearance in 2018 as a tool to ensure federal IT projects deliver value and support Nigeria’s digital transformation goals.
- Last year, the agency revised the Guideline with emphasis on interoperability, cost-effectiveness, transparency, and compliance with national digital economy goals.
- The revised guidelines introduce a three-step implementation framework—Solution Design, Implementation, and Quality Assurance.
- It also mandates that contractors must be licensed and employ certified professionals across these stages before they can qualify for government IT contracts.
