Nigeria has cut its budgetary allocation to the digital economy sector to N84.56 billion in the 2026 fiscal year, a sharp pullback from the record spending of 2025, even as the Federal Government maintains that digital transformation remains central to its ambition of building a $1 trillion economy.
The allocation to the Federal Ministry of Communications, Innovation and Digital Economy was disclosed in the 2026 Appropriation Bill presented by President Bola Ahmed Tinubu to the National Assembly. The 2026 figure represents an 81.76 per cent year-on-year decline from the N463.57 billion provided in 2025, which had marked the most aggressive funding push into the sector in recent years.
Budget data show that funding for the digital economy ministry has been highly volatile. After rising from N39.47 billion in 2021 to N159.87 billion in 2022, allocations fell steeply to N47.02 billion in 2023 and N28.54 billion in 2024, before surging in 2025. The 2026 reduction signals a moderation in spending following the execution-heavy phase of major capital projects.
Read also: Digital economy evolution puts spotlight on smarter governance, says LIRS’ Rasheed Olu-Ajayi
Despite the cut, the allocation remains higher than amounts recorded in 2021, 2023 and 2024, suggesting what officials describe as a consolidation phase rather than a retreat from the digital economy agenda.
President Tinubu, in presenting the budget, said the 2026 fiscal plan was designed around consolidation, renewed resilience and shared prosperity.
Over the six-year period from 2021 to 2026, the ministry has received a cumulative N822.53 billion, with capital expenditure dominating spending. Nearly 80 per cent, or N657.42 billion, has been channelled into digital infrastructure, including broadband expansion, fibre-optic networks, innovation platforms and nationwide connectivity projects. Personnel costs accounted for N160.70 billion, while overheads stood at N4.97 billion.
The Ministry of Communications, Innovation and Digital Economy, led by Bosun Tijani, was created to drive Nigeria’s transition to a knowledge-based economy and promote inclusive growth through technology.
It supervises key agencies such as the Nigerian Communications Commission (NCC), National Information Technology Development Agency (NITDA), Nigerian Communications Satellite (NIGCOMSAT), Galaxy Backbone, the Nigerian Postal Service (NIPOST), the National Data Protection Commission (NDPC) and the Universal Service Provision Fund (USPF).
Tijani has previously described 2025 as an “inflection year” in which the sector moved from planning to execution, pointing to progress on large-scale initiatives such as Project BRIDGE, a $2 billion programme to deploy 90,000 kilometres of fibre-optic infrastructure nationwide, expected to begin rollout in late 2025. The ministry has also prioritised skills development through the 3 Million Technical Talent (3MTT) programme, which has trained over 135,000 Nigerians in digital skills.
Read also: Digital economy bill will unlock Nigeria’s $1 trillion growth potential — Tijani
The reduced 2026 allocation raises questions about the pace of implementation of Nigeria’s digital ambitions, particularly as the information and communication technology (ICT) sector continues to expand its contribution to the economy. ICT accounted for 16.51 per cent of Nigeria’s real gross domestic product in 2022, up from 15.51 per cent in 2021.
Tinubu has repeatedly linked these investments to his administration’s broader economic vision, arguing that productivity, innovation and globally competitive skills are essential to achieving a $1 trillion economy.
He has stressed that digital capabilities now underpin growth across sectors including agriculture, healthcare, finance, manufacturing and public services, positioning the digital economy as a core enabler of Nigeria’s long-term development strategy.
