The National Identity Management Commission (NIMC) and nine other federal ministries, departments, and agencies (MDAs) are projected to spend a combined ₦24 billion on software-related projects in 2026, according to details contained in the Federal Government’s 2026 Appropriation Bill.
Although 115 MDAs have allocations for software acquisition in the proposed budget, these 10 agencies emerged as the biggest spenders, with investments spanning identity management, education, mining, cybersecurity, healthcare, public finance, and immigration services.
However, the scale of the allocation has renewed concerns over persistent wastage, weak oversight, and abuse of IT procurement processes across government institutions.
What the Budget Data Shows
Analysis of the appropriation bill indicates that NIMC alone accounts for the single largest software allocation among the top 10 MDAs.
- NIMC: ₦7.58 billion
- Federal Ministry of Education (Headquarters): ₦7.55 billion
- Mining Cadastral Office: ₦2.23 billion
- Geological Survey Agency of Nigeria: ₦1.32 billion
- National Cybercrime Coordination Centre (NCCC): ₦1.26 billion
- Nigeria Centre for Disease Control (NCDC), Abuja: ₦1.23 billion
- Federal Ministry of Finance (Headquarters): ₦1.09 billion
- Nigeria Immigration Service: ₦1.01 billion
- Budget Office of the Federation: ₦827.14 million
The near-parity between NIMC and the Ministry of Education highlights the government’s push toward digitisation of identity systems and education administration, while cybersecurity and health-related software spending also feature prominently.
Rising Concerns Over Software Budgeting
Stakeholders in Nigeria’s ICT ecosystem have repeatedly questioned the annual practice of allocating billions of naira to software projects without visible improvements in public service delivery.
The National Information Technology Development Agency (NITDA) recently confirmed these concerns, noting that IT projects are often difficult for lawmakers to scrutinise during budget defence due to their technical nature.
According to NITDA, 56% of IT projects executed by Federal Public Institutions (FPIs) failed last year, largely due to poor compliance with the agency’s IT Project Clearance Guidelines.
“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,” NITDA’s Director-General stated.
IT Projects as a Channel for Fund Diversion
The Director-General of the Bureau of Public Procurement (BPP), Adebowale Adedokun, corroborated NITDA’s position, warning that some MDAs exploit IT projects to siphon public 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.”
Preference for Foreign Software Hurting the Economy
ICT experts also argue that Nigeria is missing a major economic opportunity by prioritising foreign software solutions.
An IT analyst, Adewale Adeoye, said the economy would benefit significantly if even half of government software spending were directed to local developers.
“One major problem is that the money is not being pumped into the local economy. Many agencies still prefer imported software even when locally developed alternatives exist,” he noted.
Data from the Institute of Software Practitioners of Nigeria shows that Nigeria loses ₦156 billion annually to software importation, a trend the institute says is being driven largely by MDAs.
Government Moves to Curb IT Spending Waste
To address recurring inefficiencies, the BPP says it has introduced standard bidding documents for IT procurement and is strengthening collaboration with NITDA to eliminate duplication and improve transparency.
Adedokun also proposed service-wide procurement of software licences for global vendors such as Microsoft and Oracle to reduce costs and prevent contract inflation. He further called for a national IT price intelligence template to benchmark software costs across MDAs.
“With proper coordination and standardisation, we can turn IT from a liability into a powerful asset for national development,” he said.
Strengthening IT Project Oversight
NITDA first introduced its IT Project Clearance Guidelines in 2018 to ensure federal IT investments deliver measurable value. The guidelines were revised last year to emphasise interoperability, cost-effectiveness, transparency, and alignment with national digital economy goals.
The updated framework introduces a three-step process, Solution Design, Implementation, and Quality Assurance, and mandates that contractors be licensed and employ certified professionals before qualifying for government IT contracts.
As ₦24 billion is set aside for software in 2026, experts say effective enforcement of these guidelines will determine whether the spending drives real digital transformation or continues a cycle of waste.
