A total of 158 agencies scheduled for software acquisition and update in the 2021 budget;
The total amount stands at ₦24.6 billion;
A centralized approach would see the government spending less on software and in the process unifying her administration for all MDAs;
Moreover, given the government’s penchant for missing out on its revenue projections (hitting only 60.9% since 2015), efficient spending is vital.
Last week, the National Assembly approved the ₦13.5 trillion for the 2021 financial year amid several deliberations. And despite the campaign for accountability amid the excesses of the budget, the Assembly approved the Bill riddled with redundancies. In one critical instance, government parastatals’ software acquisition needs totalled a whopping ₦24.6 Billion.
The 2021 Budget
During a special plenary session held on December 21, the Senate passed the 2021 Budget of the Federal Republic of Nigeria. The new appropriation law signed over ₦13.588 trillion to the Executive. Earlier, the Executive arm of government had proposed a budget of ₦13.082 trillion in October. But now the Bill comes in ₦505 billion higher than the original proposal.
Also, the 2021 budget (₦13.59 trillion) is a nominal increase of ₦2.78 trillion from the 2020 revised budget (₦10.81 trillion).
Software Acquisition Request
On to the subject of contention, software acquisition worth ₦24.6 billion. Is this the best way to utilise funds in a depressed economy? And although less than a quarter (158) of Nigeria’s 700 agencies requested these items, why is it an annual occurrence?
In truth, the importance of information technology is not the question. It is indeed, vital in the 21st century. However, failing to query possible redundancies or waste by the Nigerian Legislators is not prudent. Instead, the National Assembly approved this item without querying its reoccurrences. Or still yet, inquiring to ascertain why it keeps appearing yearly.
Moreover, software applications, when purchased, need only periodic updates and upgrades. Thus, the yearly purchase of software is questionable, given the fact that these monies can be channelled to viable projects.
Centralizing Operations for Efficiency and Cost Minimization
Considering the current economic climate, it is pertinent the nation rethinks this line item. It should streamline these purchases, ensuring value for money and eliminating any redundancies. Taking a cue from the United States who streamlined all her major administrative acquisitions into one agency, Nigeria could follow suit. The US’ General Services Administration ensures all admin-related expenditure. This method ensures efficiency and eliminates repeated acquisitions.
Besides efficiency, such a unit would cut costs and keep track of these requests. It will also unify and coordinate general operations as the agencies will be linked to a central base alongside cost reduction. This will enhance interaction and promptness in report submission. Therefore, it’s time for Kemi Adeosun to start telling Nigerians how his office can step into the void.
Revenue Shortfall and a Possible Deficit Increase
Elsewhere, a Dataphyte five-year analysis revealed that the nation might not be able to fund her budget. Or realise only three-fifths of it. Since 2015, the government only realised 60.9% of its target revenue generation. Public revenue projections form the foundation of the proposed budget. It signals how much funds the government hopes to raise to fund its expenses, taking into account its various sources.
However, going by its five-year trajectory, the Buhari administration may only raise ₦4.73 trillion out of the projected ₦7.89 trillion. This shortfall buttresses the need to cut cost and focus on efficient expenditure with the most value. Not to mention it would increase the deficit from the proposed ₦5.19 trillion to a possible ₦8.35 trillion.