Nigerian software developers have sounded the alarm over the continued preference of Ministries, Departments, and Agencies (MDAs) for foreign software packages. They warn this trend poses significant security threats, represents a massive waste of public funds, and leads to substantial capital flight.
Massive Budget Allocations for Foreign Software
This concern arises from the Federal Government's 2026 Appropriation Bill, which reveals that about 115 MDAs plan software procurements this year. Among them, 10 agencies stand out with a combined budget of approximately N24 billion earmarked for software-related projects.
The planned spending spans critical sectors central to Nigeria's digital governance ambitions, including identity management, education, mining, cybersecurity, health, finance, and immigration.
Top Spenders and Their Allocations
Leading the list is the National Identity Management Commission (NIMC), which plans to spend N7.58 billion on software in 2026. Close behind is the Federal Ministry of Education (headquarters), proposing N7.55 billion for digitising education administration, data management, and examination systems.
Other major allocations identified in the proposal include:
- Mining Cadastral Office: N2.23 billion
- Geological Survey Agency of Nigeria: N1.32 billion
- National Cybercrime Coordination Centre: N1.26 billion
- Nigeria Centre for Disease Control: N1.23 billion
- Federal Ministry of Finance: N1.09 billion
- Nigeria Immigration Service: N1.01 billion
- Budget Office of the Federation: N827.14 million
Reports indicate that many of these MDAs continue to source software from countries like the United States, the United Kingdom, Israel, South Africa, and the UAE.
Security Risks and Calls for Local Content
Chris Uwaje, Chairman of Mobile Software Nigeria and former President of the Institute of Software Practitioners of Nigeria (ISPON), expressed deep concern. He stated that the continued patronage of foreign software is like blindly digging more holes into Nigeria's already porous data and digital sovereignty.
"The future of Indigenous Software development and innovation is worrisome," Uwaje said. "It shows a disdain for the indigenous software ecosystem and local content. Corruption and kickbacks in US dollars are pushing them. It is sad!"
He lamented the government's lack of interest in promoting and enacting an Indigenous Software Security Act, calling for a strategic change in leadership thinking.
Echoing this sentiment, James Agada, Software expert and Founder/CEO of Ziemozi Interactive Limited, urged the government to stop relying on foreign technology. He cited sovereignty, security, and cost (both direct and indirect) as primary reasons.
"This requires a dedicated multi-year effort to build and domesticate critical technologies and applications locally," Agada advised. "I do not subscribe to knee-jerk bans and prohibitions that only exist on paper. We should define how such an initiative can work and convince the government to support and drive it."
Systemic Failures and Procurement Flaws
Amid these complaints, there are broader concerns about systemic wastage and failed projects. The National Information Technology Development Agency (NITDA) recently revealed that 56 per cent of IT projects executed by Federal Public Institutions (FPIs) have failed.
NITDA's Director-General, Kashifu Inuwa, attributed this high failure rate 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," Inuwa stated.
The Director-General of the Bureau of Public Procurement (BPP), Dr. Adebowale Adedokun, corroborated this, alleging that some MDAs hide under the technical nature of IT projects to siphon funds. "Most IT projects are intangible, and some MDAs use them as a cover to siphon public funds. We’ve seen projects presented without standardisation, which leads to inefficiencies and corruption," he said.
Adding his voice to the discourse, Jide Awe, Founder of Jidaw Systems, called for a complete overhaul of the ICT procurement system. He stressed that the national question of local content must be resolved and fully embraced by all MDAs to ensure sustainable technological development and security for Nigeria.
