Communications ministry budget allocation hits ₦822.53bn in six years

By Progress Godfrey

ABUJA — The Federal Ministry of Communications, Innovation and Digital Economy received a cumulative budgetary allocation of ₦822.53 billion between 2021 and 2026, reflecting the Federal Government’s evolving spending priorities in Nigeria’s digital and technology sector.

An analysis by Financial Vanguard shows that the ministry was allocated ₦39.47 billion in 2021, before the figure surged to ₦159.87 billion in 2022—representing a 405 per cent year-on-year increase.

Despite the Information and Communication Technology (ICT) sector contributing 16.51 per cent to Nigeria’s real Gross Domestic Product (GDP) in 2022—up from 15.51 per cent in 2021—the ministry’s allocation fell sharply in 2023. The budget dropped by 70.59 per cent year-on-year to ₦47.02 billion, marking a significant downturn.

The decline continued in 2024, with the allocation further reduced to ₦28.54 billion.

However, the trend reversed dramatically in 2025, when the ministry’s budget soared to ₦463.57 billion, exceeding the combined allocations of the previous four years under review.

President Bola Ahmed Tinubu, while presenting the 2026 Appropriation Bill, described it as a budget of consolidation, renewed resilience and shared prosperity. Under the proposal, the Ministry of Communications, Innovation and Digital Economy received an allocation of ₦84.56 billion.

Although this represents an 81.76 per cent decrease year-on-year from the 2025 figure, it remains higher than allocations recorded in 2024, 2023 and 2021.

Further breakdown of the six-year budget cycle shows that personnel costs amounted to ₦160.70 billion, accounting for approximately 19.5 per cent of total allocations. This reflects the expanding size of the ministry and its agencies, alongside rising wage pressures in the public sector.

Overhead expenditure stood at ₦4.97 billion, making it the smallest component of the ministry’s budget and suggesting relatively low spending on routine administrative operations.

Capital expenditure dominated the allocations, totalling ₦657.42 billion, or nearly 80 per cent of total spending. This underscores a strong emphasis on infrastructure development, digital platforms, innovation hubs and sector-wide projects within the communications and digital economy space.

The Ministry of Communications, Innovation and Digital Economy, currently headed by Dr. Bosun Tijani, was established to drive Nigeria’s transition to a knowledge-based economy and build an inclusive information society. Its mandate includes leveraging ICT to promote job creation, economic growth and transparency in governance.

The ministry also oversees key agencies, including the Nigerian Communications Commission (NCC), National Information Technology Development Agency (NITDA), Nigerian Communications Satellite (NIGCOMSAT), Galaxy Backbone, Nigerian Postal Service (NIPOST), National Data Protection Commission (NDPC) and the Universal Service Provision Fund (USPF).

Analysts note that the heavy tilt towards capital spending aligns with the Federal Government’s strategy to position the digital economy as a major growth driver, particularly through broadband expansion, digital inclusion and innovation-led job creation, as Nigeria targets a $1 trillion economy by 2030.