NIMC, 9 MDAs to Allocate ₦24 Billion to Software in 2026
The National Identity Management Commission (NIMC), alongside nine other federal ministries, departments, and agencies (MDAs), are expected to commit approximately ₦24 billion to software-related projects in 2026, based on figures from the Federal Government’s 2026 Appropriation Bill.
Although 115 MDAs received software-related budgetary allocations, these 10 institutions account for the largest share of spending, covering sectors such as identity management, education, mining, cybersecurity, healthcare, public finance, and immigration.
The scale of the proposed expenditure has once again drawn attention to long-standing issues of inefficiency, weak accountability, and alleged abuse of IT procurement processes within government agencies.
Breakdown of Software Allocations
A review of the budget data shows that NIMC leads all MDAs in proposed software spending for the year.
- 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-equal allocations for NIMC and the Ministry of Education underscore the government’s emphasis on digital identity systems and education data management, while notable funding for cybersecurity and health software reflects growing digital risks and public health needs.
Questions Over Value for Money
Players in Nigeria’s ICT sector have continued to express concern about the routine budgeting of billions of naira for software projects without corresponding improvements in service delivery.
The National Information Technology Development Agency (NITDA) has echoed these concerns, pointing out that the technical nature of IT projects often makes them difficult for legislators to properly interrogate during budget defence sessions.
NITDA disclosed that 56% of IT projects implemented by Federal Public Institutions (FPIs) failed in the previous year, attributing the trend largely to non-compliance with its IT Project Clearance Guidelines.
“These failures stem from poor alignment with national standards and priorities. Public funds should not be wasted on disjointed IT systems that deliver little or no value,” the agency said.
Allegations of IT Projects Being Used to Divert Funds
The Director-General of the Bureau of Public Procurement (BPP), Adebowale Adedokun, reinforced NITDA’s concerns, warning that some MDAs exploit the intangible nature of IT projects to conceal financial misconduct.
“Because IT projects are often difficult to quantify, some agencies use them as a channel to divert public funds,” he said, adding that poor standardisation has contributed to inefficiency and corruption.
Heavy Reliance on Imported Software
Experts say Nigeria is also losing significant economic value due to MDAs’ continued preference for foreign software solutions.
ICT analyst Adewale Adeoye noted that directing even a portion of government software spending to local developers could stimulate growth in the domestic tech ecosystem.
“Much of this money leaves the country because agencies still favour imported software, even when locally developed alternatives are available,” he said.
According to the Institute of Software Practitioners of Nigeria, Nigeria forfeits about ₦156 billion every year to software importation, a loss it attributes largely to government procurement practices.
Efforts to Reduce Waste and Improve Oversight
In response, the BPP says it has rolled out standardised bidding documents for IT procurement and is working more closely with NITDA to improve coordination, reduce duplication, and enhance transparency.
Adedokun also advocated for centralised procurement of software licences from global vendors such as Microsoft and Oracle to curb inflated contracts. He further proposed the creation of a national IT price benchmarking framework to guide MDAs.
“With better coordination, IT spending can shift from being a drain on public resources to a driver of national development,” he said.
Tighter Rules for Government IT Projects
NITDA first launched its IT Project Clearance Guidelines in 2018 to ensure federal IT investments align with Nigeria’s digital transformation objectives. The framework was updated last year to place a stronger emphasis on interoperability, transparency, affordability, and national digital economy priorities.
The revised guidelines introduce a three-stage approach, Solution Design, Implementation, and Quality Assurance, and require contractors to be licensed and staffed with certified professionals before they can secure government IT contracts.
As the 2026 budget earmarks ₦24 billion for software, analysts say the real test will be whether stricter enforcement translates into measurable digital progress or continued inefficiencies.
