NDIC, FIRS Under Financial Scrutiny Over Plan to Spend N8.7bn on Software
- Financial agencies have come under the radar after reports showed they budgeted huge sums of money for software deployment
- While the FIRS is proposing a budget of N3.5 billion for software acquisition, the NDIC intends to invest N5.2 billion
- Other government agencies like NIS, FCCPC, and PenCom have also outlined their intentions to procure software in 2024
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Legit.ng journalist Victor Enengedi has over a decade's experience covering Energy, MSMEs, Technology and the stock market.
The proposal to allocate N8.7 billion exclusively for software expenditures in the current year, jointly by the Nigeria Deposit Insurance Corporation (NDIC) and the Federal Inland Revenue Service (FIRS), has generated diverse opinions from various stakeholders.
This financial allocation is outlined in the government-owned enterprises (GOEs) budget for the year 2024, as disclosed by the Ministry of Budget and Economic Development.
Source: UGC
The NDIC intends to invest N5.2 billion specifically for software acquisition to bolster its operations in 2024.
Notably, this appropriation represents the highest software budget among GOEs, with the FIRS coming second with a proposal to invest N3.5 billion for software acquisition to bolster its tax reform initiatives in 2024.
Earlier this week, the Chairman of FIRS, Zacch Adedeji, disclosed that the Federal Government had handed the agency a target of N19.4 trillion for 2024.
It would be recalled that in late December 2023, the Senate passed a N28.7 trillion 2024 appropriation bill proposed by President Bola Ahmed Tinubu.
GOEs budget heavily on software acquisitions
Several other Government-Owned Enterprises (GOEs) have outlined their intentions to procure software in the current fiscal year.
According to The Guardian, the Nigeria Immigration Service (NIS) has earmarked a budget of N874.5 million for the same purpose.
Additionally, the National Pension Commission (PenCom) and the Federal Competition and Consumer Protection Commission (FCCPC) have proposed budgets of N384 million and N255 million, respectively, for software acquisition
Nonetheless, there is apprehension regarding the recurring practice of allocating substantial amounts of money for software upgrades by ministries, departments, and agencies (MDAs).
This annual budgetary trend has raised concerns about the potential misuse of public funds and has been viewed as a channel for diverting financial resources.
Investing in technology is the right way to go
Reacting to the enormous software budget, Chuka Okonkwo, an information technology expert, told Legit.ng that it is quite logical that the FIRS has chosen to make significant investments in technology.
He said:
The implementation of the Tax Promax initiative, introduced a few years ago, has proven beneficial in boosting tax collections, despite encountering some challenges. Notably, there has been a substantial increase from N8 trillion in 2019 to N12 trillion in 2023. To further enhance their performance, it is suggested that increased investments in technology is crucial.
He added that with a heightened focus on technological advancements, there is potential for the tax authorities to surpass their ambitious N19 trillion target for the current year.
However, the National Information Technology Development Agency (NITDA) has previously expressed reservations about public institutions' substantial budget allocations for information technology (IT), emphasizing the lack of tangible value derived from such expenditures.
NDIC asks depositors failed banks to come for their money
In related news, Legit.ng reported that depositors, creditors, and shareholders of 20 failed banks in Nigeria would get an additional N16.18 billion in liquidation dividends
The Nigeria Deposit Insurance Corporation (NDIC) stated this, noting that the 20 failed banks were shut down due to the Central Bank of Nigeria (CBN) revocation of their operating licences between 1994 and 2018.
The latest payment will increase dividends paid to the depositors to N61.63 billion after making cumulative payments of liquidation dividends totalling N45.45 billion as of July 2023.
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Source: Legit.ng
