The National Identity Management Commission (NIMC) and nine other federal ministries, departments and agencies (MDAs) are set to spend about N24 billion on software projects in 2026, according to details in the Federal Government’s 2026 Appropriation Bill.
Out of 115 MDAs budgeted for software acquisition this year, these 10 agencies account for the largest allocations, spanning identity management, education, mining, cybersecurity, health, finance and immigration. The scale of spending, however, has reignited concerns over recurring waste and abuse of IT procurement processes across government.
Budget data shows NIMC alone accounts for the biggest allocation, with N7.58 billion earmarked for software in 2026. Close behind is the Federal Ministry of Education (Headquarters), which plans to spend N7.55 billion, reflecting increased digitisation efforts in education administration.
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 (N1.26 billion). In the health and finance sectors, the Nigeria Centre for Disease Control has N1.23 billion, while the Federal Ministry of Finance is allocated N1.09 billion. The Nigeria Immigration Service plans to spend N1.01 billion, and the Budget Office of the Federation rounds out the list with N827.14 million.
Industry stakeholders have questioned why annual software spending runs into billions without a corresponding improvement in public service delivery. The National Information Technology Development Agency (NITDA) has repeatedly flagged the issue, noting that IT projects are often poorly scrutinised during budget defence because of their technical nature.
NITDA disclosed last year that 56 per cent of IT projects executed by federal public institutions failed, largely due to poor compliance with its IT Project Clearance Guidelines. The Bureau of Public Procurement (BPP) has echoed these concerns, warning that some MDAs use opaque IT projects as channels for misappropriating funds.
Experts also point to a strong preference for foreign software. IT analyst Adewale Adeoye said Nigeria loses significant economic value because MDAs often import software even when local alternatives exist. According to the Institute of Software Practitioners of Nigeria, the country loses about N156 billion annually to software importation, driven largely by government demand.
To address the problem, the BPP has introduced standard bidding documents for IT procurement and is working with NITDA to improve transparency, reduce duplication and cut costs. The bureau has also proposed centralised procurement of software licences and the development of a national IT price benchmark to prevent inflated contracts.
NITDA’s revised IT Project Clearance Guidelines now emphasise interoperability, value for money and compliance with national digital economy goals, as the government seeks to rein in waste and turn IT spending into a driver of development rather than a fiscal drain.
