Nine Federal MDAs Budget ₦24bn For Software in 2026

The National Identity Management Commission (NIMC) and nine other federal ministries, departments and agencies (MDAs) are projected to spend about ₦24 billion on software-related projects in 2026, according to details contained in the Federal Government’s 2026 Appropriation Bill.

Although 115 MDAs made provisions for software acquisition in the budget, 10 agencies account for the largest share of spending, with allocations cutting across identity management, education, mining, cybersecurity, health, finance, and immigration services.

However, the size of the allocations has once again raised concerns over persistent wastage, poor value delivery, and alleged abuse of IT procurement processes within government institutions.

What the data shows

Budget data indicate that NIMC alone accounts for the largest single software allocation, with ₦7.58 billion earmarked for software projects in 2026.

Close behind is the Federal Ministry of Education (Headquarters), which has a proposed ₦7.55 billion software budget, reflecting ongoing efforts to digitise education administration and data systems.

Other major allocations include:

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

Concerns over annual software spending

Stakeholders in Nigeria’s ICT ecosystem have repeatedly questioned the practice of budgeting billions of naira annually for software without commensurate improvement in public service delivery.

The National Information Technology Development Agency (NITDA) has also raised red flags, noting that IT projects are often difficult for lawmakers to scrutinise during budget defence due to their technical nature.

In 2025, NITDA disclosed that 56% of IT projects executed by Federal Public Institutions failed, largely due to non-compliance with its 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 DG, Kashifu Inuwa, said.

Similarly, Dr. Adebowale Adedokun, Director-General of the Bureau of Public Procurement (BPP), warned that some MDAs use IT projects as a cover to siphon public funds.

“Most IT projects are intangible, and some MDAs hide under them to siphon public funds. We’ve seen projects presented without standardisation, leading to inefficiencies and corruption,” he said.

Preference for foreign software

IT expert Adewale Adeoye argued that Nigeria could derive greater economic benefits if a significant portion of government software spending were directed toward locally developed solutions.

“One major issue is that these funds are not circulating within the local economy. Most MDAs still prefer imported software, even when local alternatives exist,” he said.

According to the Institute of Software Practitioners of Nigeria (ISPON), the country loses about ₦156 billion annually to software importation, a trend it says is being fuelled largely by government agencies.

Moves to curb wastage

To address inefficiencies, the BPP says it has introduced standard bidding documents for IT procurement and is working closely with NITDA to improve transparency, eliminate duplication, and reduce waste.

Dr. Adedokun also recommended service-wide procurement of software licences, particularly for global vendors such as Microsoft and Oracle, to cut costs and curb contract inflation. He further called for a national IT price intelligence template to benchmark software costs.

“With proper coordination and standardisation, we can turn IT from a liability into a powerful asset for national development,” he said.

What you should know

NITDA introduced its IT Project Clearance Guidelines in 2018 to ensure federal IT projects deliver value and align with Nigeria’s digital transformation agenda.

The guidelines were revised in 2025 to emphasise interoperability, cost-effectiveness, transparency, and alignment with national digital economy goals.

They now feature a three-stage framework: Solution Design, Implementation, and Quality Assurance.

Contractors must be licensed and employ certified professionals before qualifying for government IT contracts.