There is a common saying in the halls of the Federal Secretariat: “If you want to hide money, put it in software; if you want to burn money, put it in diesel.”
In the newly released 2026 Appropriation Bill, the Federal Government has done both at once, and the numbers are shocking. While you were busy complaining about data prices, the National Identity Management Commission (NIMC) and nine other government agencies carved out a huge N24 billion just for “Software Acquisition.”
Here’s the kicker: NIMC wants to spend N7.58 billion on software, but also needs N1.8 billion just to buy generators to keep the computers running. Welcome to the 2026 Budget, where we aim to create a First World digital economy on a Third World power grid.
Let’s start with the big issue: N24 billion.
In the private sector, N24 billion (over $16 million) can buy a top-notch technology system. It can start businesses and launch successful companies. But in the Nigerian government, “Software” often seems to disappear without a trace.
NIMC leads the spending with N7.58 billion. You have to wonder: What software are they really buying? Is this for a new identity system? Is it for fees to big companies like Oracle or Microsoft? Or is this just the routine “upgrade” where agencies spend billions every year on the same system that still takes three weeks to generate a National Identification Number (NIN) slip?
The Ministry of Education follows closely with N7.55 billion. For a sector where university strikes happen regularly, and primary school teachers don’t get paid, spending N7.5 billion on “digital administration” seems misplaced.
Why is this a warning sign for theft?
Software is perfect for inflating budgets because it’s hard to measure its impact. If you build a road, we can measure the materials. If you buy a car, we can count the tires. But if you claim to spend N2 billion on “System Optimisation” or “Cloud Licensing,” who will check the code? Who can see if the license cost $1 million or $5 million? That’s why “Software Acquisition” has become a favourite line item for budget manipulation, replacing “Stationery.”
Spending N1.8 Billion to Bypass a Broken Power Sector
Let’s examine what’s happening behind the scenes. The National Identity Management Commission (NIMC) has set aside N1.8 billion for “Power Generating Systems” for its main office and 36 state offices.
It’s ironic. We are creating a database with the biometric identities of 200 million Nigerians, the “fuel” for our new economy, but we cannot rely on the national power grid to keep it running.
This N1.8 billion will not go towards solar power or renewable energy (the State House has its own separate N7 billion budget for solar). Instead, it will mainly fund diesel generators.
Anyone in charge of facilities in Abuja knows: The real money isn’t in buying the generator; it’s in fueling it. Diesel costs and “Generator Maintenance” are common ways to misuse funds because once fuel is burned, it’s hard to trace. Did the generator run for 24 hours or just 4 hours? Did we buy 10,000 liters or only 5,000 liters? Only the top officials and the supplier know the truth.
Buying Ferraris for Village Roads
The real issue with the 2026 budget is not just how much money is being spent, but how it is being spent. The National Cybercrime Coordination Centre (NCCC) plans to spend N1.26 billion on software to fight hackers, while the Mining Cadastral Office will spend N2.23 billion on software to track minerals. Each agency is creating its own separate digital system.
Instead of using a central “Government Cloud” that agencies like Galaxy Backbone were supposed to manage, every agency is purchasing software on its own at high prices and buying generators to power these systems. This approach is costly and inefficient. It raises serious concerns about how funds are being used.
As we move deeper into 2026, the Senate Committee on Appropriations should be asking not just “How much?” but also “Why?” Why does an agency that already has a database need N7.5 billion for new software? And why, despite billions spent on reforms in the power sector, does the government still rely on buying generators from importers?
Until we address these questions, we are simply putting technology into a corrupt system.
