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Twenty-three Nigerian states plan to spend ₦132.45 billion ($97.15 million) to fund their technology ministries and digital ambitions in 2026, according to budget documents sourced from Budgit’s Open States, a digital platform that publishes budget reports for all 36 Nigerian states.
This is nearly four times the ₦33.59 billion ($24.64 million) they actually spent in 2025. Last year, these states budgeted ₦80.21 billion ($58.83 million) for technology initiatives and achieved an execution rate of just 41.88%.
Despite the jump in headline allocation, technology ministries accounted for just 0.25% of total state expenditure in 2025. In 2026, it is projected to rise to only 0.53%, still less than one naira out of every ₦100 spent.
The states include Abia, Akwa-Ibom, Bauchi, Bayelsa, Benue, Cross River, Delta, Ebonyi, Edo, Ekiti, Enugu, Gombe, Imo, Kano, Kebbi, Kogi, Lagos, Ondo, Osun, Plateau, Sokoto, Taraba, and Yobe.
Of Nigeria’s 36 states, 23 maintained dedicated technology or digital economy budgets in 2026. Several states, including Nasarawa, Borno, and Kwara, lack standalone technology ministries, while others, such as Niger, Katsina, and Ogun, did not allocate specific funding to tech-focused agencies.
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The widening gap between what states promise and what they deliver raises questions about how serious they are about building a digital economy. States control right-of-way approvals, fibre deployment, and local startup ecosystems.
Yet persistent underspending suggests technology budgets function more as policy signals than operational commitments.
Achieving universal digital connectivity, widespread financial inclusion, and higher value-added manufacturing could cost about $1,231 per person annually, according to the United Nations Trade and Development.
Big tech ambitions, thin execution
Even after underspending in 2025, the 23 states increased their collective technology allocation by 65.13%.
Across 23 states, the ₦132.45 billion allocation for 2026 may barely be enough to fund large-scale fibre deployment or statewide digital infrastructure.
The Nigerian Communications Commission (NCC), the country’s telecoms regulator, in 2021 warned that inadequate public funding from states remains a major barrier to ICT development, noting that successive governments have struggled to finance digital infrastructure through national and state budgets.
Meanwhile, most states continue to prioritise roads, bridges, and other politically visible capital projects. Education and health consume much of what remains. Technology, despite being the backbone of modern public service delivery, continues to receive relatively symbolic allocations.
States’ profile
Across the country, digital ambition is visible.
In Lagos State, home to more than 900 startups, the government operates a ₦1 billion ($733,460) innovation fund through the Lagos State Science Research and Innovation Council (LASRIC). The state is laying over 6,000 km of metro fibre to close connectivity gaps and is advancing an innovation bill that could earmark between 1.5% and 2% of annual capital expenditure for innovation.
Ogun State has invested in infrastructure such as the Ogun Tech Hub to promote digital literacy and entrepreneurship. In Ekiti State, the Ekiti Knowledge Zone, backed by an $80 million investment from the African Development Bank, aims to position the state as a regional hub for the knowledge economy.
Enugu State is pursuing technology partnerships with the private sector. Edo State recently launched a data centre as part of efforts to build a modern digital economy. In 2025, Kwara State opened an innovation hub in Ilorin to nurture local tech talent. In Anambra State, the ICT agency is exploring artificial intelligence tools to address payroll fraud and improve service delivery.
These initiatives reflect aspiration. But in many cases, funding remains thin relative to ambition.
Revenue realities
Many Nigerian states depend heavily on monthly allocations from the Federation Account Allocation Committee (FAAC) and struggle to generate sufficient internal revenue. States with weaker IGR bases typically struggle with digital transformation because of the heavy upfront capital needed.
Due to these revenue constraints, tech budgets are usually symbolic and signals of modernity, rather than clear commitments of delivery. States, like the federal government, frequently rely on private sector partnerships and donor funding to advance digital projects.
There is also the political logic to technology allocations. Digital economy initiatives are attractive policy signals. Governors announce startup hubs or smart city projects to score political points. In some cases, commissioners are appointed based on political affiliations rather than sectoral competence.
For many states, technology allocations are also skewed toward hardware procurement and consultancy contracts instead of long-term infrastructure investments. Without detailed budget breakdowns, it is difficult to assess whether the ₦132.45 billion ($97.15 million) earmarked for 2026 will translate into durable digital public infrastructure or short-cycle spending.
22.84% of the approved tech budget for 2026 is designated for recurrent expenditure, such as payment of salaries and administrative costs.
Nigeria has ambitious digital economy targets. Broadband expansion, startup growth, e-governance systems, and digital public infrastructure all depend on coordinated investment across federal and state levels.
But at less than 1% of total expenditure, most states are not funding digital transformation at a scale that matches the scale of their ambitions.
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