Are you secretly wondering, ‘How much does FIRS and NDIC plan to spend on software acquisition in 2024?’ based on the recent announcement by FIRS?
Well, your favorite blog, howmuchinnigeria.com.ng, is right here to provide a satisfying answer to this crucial question.
A total N8.7 billion would be invested in software purchases by the Federal Inland Revenue Service (FIRS) and the Nigeria Deposit Insurance Corporation (NDIC) in 2024, according to their lofty goals.
The Ministry of Budget and National Planning has announced the government-owned businesses (GOEs) budget for the year, which includes a large allocation.
Even if several agencies indicate that they want to purchase software, NDIC, and FIRS are the organizations that spend the most in this area.
In this article, I am going to cover the details of their financial allocations, the broader picture of government software spending, the worries expressed by ICT industry stakeholders, and the possible effects on the local software development sector.
How much does FIRS and NDIC plan to Spend on Software Acquisition in 2024?
NDIC and FIRS Leading the Pack
NDIC will take the lead among government agencies in terms of budgetary allocation for software in 2024.
The corporation plans to spend a substantial N5.2 billion on software acquisition, reflecting a commitment to enhancing its technological infrastructure.
Following closely is the Federal Inland Revenue Service (FIRS), allocating N3.5 billion for software acquisition, solidifying its position as the second-highest spender among the GOEs.
These allocations indicate a recognition of the critical role that advanced software solutions play in the operations of these financial institutions.
Other Major Players
Apart from NDIC and FIRS, several other government agencies are also gearing up for significant investments in software acquisition.
The Nigeria Immigration Service (NIS) is allocating N874.5 million for software, with a specific focus on upgrading its automated platform for passport acquisition.
This move aims to streamline the passport acquisition process, enabling Nigerians to complete the entire procedure online without physical visits to NIS offices.
Additionally, the National Pension Commission (NPC) and the Federal Competition and Consumer Protection Commission (FCCPC) have earmarked N384 million and N255 million, respectively, for software acquisition in 2024.
These diverse allocations across various government agencies highlight the widespread recognition of the importance of software in improving efficiency and service delivery.
Stakeholder Concerns
Despite the significant budgetary allocations for software acquisition, concerns have been raised by stakeholders in the Nigerian ICT industry.
Many express worry about the consistent practice of budgeting substantial amounts for software without corresponding improvements in services provided by Ministries, Departments, and Agencies (MDAs).
The National Information Technology Development Agency (NITDA) has acknowledged this concern, emphasizing the need for accountability, transparency, efficiency, and effectiveness in utilizing public funds for IT projects.
NITDA has implemented an IT projects clearance system, requiring all MDAs to present their IT projects for clearance before funds are committed.
This proactive measure aims to ensure that substantial investments in IT projects translate into tangible value and contribute to the development of a digitally-enabled public service.
Loopholes in Software Budgets
While NITDA’s clearance system is a step towards ensuring accountability, industry stakeholders argue that there are still loopholes in the budgeting and acquisition processes.
Mr. James Emadoye, a former President of the Institute of Software Practitioners of Nigeria (ISPON), notes the deceptive nature of memos justifying software acquisitions.
He highlights instances where memos describe the software as special and essential for specific engineering processes, potentially obscuring the true nature and necessity of the acquisition.
One key concern raised by Mr. Adewale Adoye, an IT expert, is the preference for foreign software over locally developed alternatives.
He asserts that if a significant portion of the allocated budget were directed toward local software development, it could significantly benefit the country’s economy.
Currently, Nigeria loses an estimated N156 billion annually to software importation, with MDAs contributing to this trend by prioritizing foreign software over locally available solutions.
Impact on Local Software Development
The Institute of Software Practitioners of Nigeria (ISPON) has been vocal about the economic impact of the preference for foreign software.
The annual loss of N156 billion to software importation underscores the need for a shift in focus towards supporting and promoting local developers.
Redirecting a portion of the budgetary allocations to locally developed software could not only boost the economy but also foster the growth of the country’s software industry.
Encouragingly, the government’s commitment to software acquisition presents an opportunity to reshape the sector by mentioning the use of indigenous software solutions.
By actively promoting and investing in local developers, the government can contribute to job creation, technological innovation, and the overall growth of the Nigerian software industry.
NITDA’s Ongoing Efforts
NITDA’s role in monitoring all IT projects of MDAs is crucial in addressing concerns over mismanagement and misuse of funds.
The agency’s clearance system serves as a gatekeeper, ensuring that proposed IT projects undergo scrutiny and align with strategic objectives. This active method, if effectively carried out, has the potential to minimize wastage and improve the overall efficiency of government IT projects.
In Summary
How Much does FIRS and NDIC plan to spend on Software Acquisition in 2024? The answer lies in the massive budgetary allocations of N5.2 billion and N3.5 billion by NDIC and FIRS, respectively.
While these allocations signify a commitment to technological advancement, stakeholders’ concerns regarding accountability, transparency, and the preference for foreign software cannot be ignored.
The challenges in the system, as spotted by industry experts, call for a comprehensive approach to ensure that the funds allocated for software acquisition translate into tangible benefits for the Nigerian economy and the local software development industry.
As the government continues to invest in software, the goal should shift towards leveraging indigenous solutions to promote economic growth and technological self-sufficiency.
