The National Identity Management Commission (NIMC) and nine other federal ministries, departments and agencies (MDAs) are projected to spend about N24 billion on software-related projects in 2026, according to details in the Federal Government’s 2026 Appropriation Bill.
Although 115 MDAs received allocations for software acquisition, 10 agencies account for the largest share, spanning identity management, education, mining, cybersecurity, health, finance and immigration.
NIMC tops the list with a proposed N7.58 billion, making it the single largest spender on software among MDAs. It is closely followed by the Federal Ministry of Education (Headquarters) with N7.55 billion, reflecting ongoing digitisation efforts in education administration and data systems.
Other major allocations include the Mining Cadastral Office (N2.23 billion), the Geological Survey Agency of Nigeria (N1.32 billion), and the National Cybercrime Coordination Centre (NCCC) (N1.26 billion).
In the health sector, the Nigeria Centre for Disease Control (NCDC), Abuja, is allocated N1.23 billion, while the Federal Ministry of Finance (Headquarters) has N1.09 billion. The Nigeria Immigration Service is set to spend N1.01 billion, and the Budget Office of the Federation rounds out the list with N827.14 million.
The large allocations have, however, renewed concerns over waste, inefficiency and abuse of IT procurement across MDAs. Stakeholders in the ICT sector have repeatedly questioned the value delivered by billions of naira spent annually on software.
The National Information Technology Development Agency (NITDA) recently warned that MDAs often push huge IT budgets because such projects are highly technical and difficult for lawmakers to scrutinise during budget defence. The agency disclosed that 56 per cent of IT projects executed by Federal Public Institutions have failed, largely due to poor compliance with its IT Project Clearance Guidelines.
Similarly, the Director-General of the Bureau of Public Procurement (BPP), Dr. Adebowale Adedokun, said some MDAs hide under IT projects to siphon public funds, citing lack of standardisation and weak oversight.
An IT expert, Adewale Adeoye, argued that the economy would benefit more if a significant portion of software budgets were invested in locally developed solutions rather than imported software. According to the Institute of Software Practitioners of Nigeria (ISPON), the country loses about N156 billion annually to software importation, a trend it says is driven largely by government MDAs.
To address the problem, the BPP has introduced standard bidding documents for IT procurement and pledged closer collaboration with NITDA to reduce duplication, improve transparency and cut waste. Adedokun also advocated centralised procurement of software licences from major global vendors and the creation of a national IT price benchmark.
NITDA’s IT Project Clearance Guideline, first introduced in 2018 and revised last year, now emphasises interoperability, cost-effectiveness, transparency and alignment with national digital economy goals, with a three-step framework covering solution design, implementation and quality assurance.
