The budget allocation to the Ministry of Communications, Innovation and Digital Economy fell for the second year in a row, despite its significant contributions to the country’s Gross Domestic Product.
According to the budget submitted by President Bola Tinubu, the communications ministry is expected to spend N28.54bn in 2024, a 39.31 per cent decline from the N47.02bn it was allocated in 2023.
The ministry’s budgetary allocation had declined by 70.93 per cent in 2023 after it got N159.87bn in 2022.
N20.25bn was earmarked for personnel costs, N698.59, N6276m for overhead, and N7.59bn for capital spending.
This leaves the Ministry of Communications, Innovation, and Digital Economy with one of the lowest expected expenditures for 2024.
The low allocation for the ministry may also be connected to the new direction of the government, which expects the private sector to fund many capital projects due to its low revenue problem.
During the presentation of the budget, the Minister of Finance and Budget Planning, Abubakar Bagudu, stated, “Equally on infrastructure spending, part of the instruction of Mr President to the cabinet is that, as he has done in Lagos, we have to bring in private sector investments into infrastructure.
“He has mandated all ministries to examine how to access investors who are willing to put money into infrastructure. What the government can put into infrastructure is small compared to what the private sector can bring.”
In his roadmap titled ‘Accelerating our collective prosperity through technical efficiency,’ for the ministry, the Minister for Communications, Innovation and Digital Economy, Bosun Tijani, highlighted that he hoped to boost investment in broadband infrastructure by 300-500 per cent by the end of 2027.
Commenting on the need for improved ICT infrastructure in the country, he said.
“The 3rd pillar of our strategic blueprint showcases our commitment to building the critical infrastructure required to power a strong digital economy.
“We recognise that economic prosperity is linked to a robust digital foundation. Our emphasis on building stronger digital infrastructure extends beyond connecting people but also focuses on economic empowerment and creating opportunities for inclusion. With improved access to quality broadband and upgraded critical services, this pillar will catalyse a digital transformation that impacts our entire population.”
He announced a plan to increase fibre optic cables to over 95,000km across the country.
According to the World Bank, the ICT sector is crucial to the growth of the Nigerian economy. However, the United States believed that the country’s lack of digital infrastructure would limit economic growth.
According to the US Deputy Secretary of Treasury, Wally Adeyemo, this underscores the need for increased investment in digital infrastructure.
He said, “In order for that to be successful, you must invest in digital infrastructure.
“Ultimately, if there is no access to high-speed internet and information across the country, it is going to limit the potential of the economy to grow. So, in addition to investing in companies and helping them grow, we want to make sure that Nigeria has the infrastructure it needs, both physical and digital, to be able to benefit from entrepreneurs and creativity in the economy.”
