Blogs The Role of IT Service Providers in Enabling Public Sector Digitalisation in Nigeria Publish on February 20, 2025 In the evolving landscape of governance, digital transformation is no longer optional for the Nigerian public sector—it is a necessity. The increasing demand for efficient service delivery, transparency, data security, and economic competitiveness makes digital transformation essential for modern governance in Nigeria. With an annual federal budget exceeding N49.7 trillion (2025), 36 states and 774 local government areas striving for efficiency, IT service providers have a critical role in accelerating Nigeria’s digital journey. How is Nigeria currently positioned globally on the digitalisation scale? – According to the United Nations E-Government Development Index, Nigeria was ranked 144th in 2022, with a score of 0.48146. This index assesses e-government development based on online services, telecommunication infrastructure, and human capital. – In terms of digital competitiveness, Nigeria was placed 125th out of 137 countries in a 2024 report, indicating challenges in technology infrastructure and adoption. – The positive statistics is from International Telecommunication Union (ITU) highlighting Nigeria’s readiness for digital transformation sits on 71% in a its 2024 assessment.TrendingHow Multi-Factor Authentication Can Save Your Business from Breaches These statistics are congruous with the data from Nigerian regulatory agencies such as the National Bureau of Statistics (NBS) which stated that only 35% of government agencies have integrated digital tools for service delivery, compared to 85% in the private sector. What Does Nigeria’s 2025 Budget Say About Digitalisation? The 2025 budget, approved on 13 February 2025, seems to have reinforced the commitment of the Federal Government to public sector digitalisation as observed in key budget allocations for digital initiatives: – Ministry of Communications, Innovation & Digital Economy: Strengthening cloud computing adoption, e-Government platforms, and digital literacy initiatives. – Ministry of Education: Investments in e-learning infrastructure, digital libraries, and STEM education. – Ministry of Finance: Expansion of automated tax collection systems and digital revenue tracking. – Ministry of Power: Deployment of smart grid technologies to improve electricity distribution. – Ministry of Interior: Enhancing digital identity systems and biometric security frameworks. These initiatives highlight the Government’s recognition that digitalisation is a key driver of governance, economic development, national security and alignment with global standards. What Regulations Drives Digitalisation in Nigerian Agencies? Several policies and regulations continue to shape digital transformation in Nigeria’s public sector: – National e-Government Master Plan (NeGMP): Provides a roadmap for digital government services and inter-agency collaboration. – Nigeria Data Protection Act (2023): Ensures secure handling of citizens’ data and mandates compliance for MDAs. – Cybercrime (Prohibition, Prevention, etc.) Act (2015): Establishes guidelines for securing government digital assets. – Federal Government’s Digital Economy Policy and Strategy (2020-2030): Aims to enhance digital literacy, infrastructure, and service delivery. – Nigerian National Broadband Plan (2020-2025): Supports connectivity for government institutions to improve service efficiency. These regulations provide the foundation for IT service providers to deploy secure, scalable, and effective digital solutions in MDAs. In What Areas Can IT Service Providers Drive Impact? 1) Enhancing Government Service Delivery: – Digital platforms for citizen engagement (e-government portals) can reduce processing times by 40%. – The Automation of manual processes. Government Agencies like FIRS, NIMC, and NUPRC have improved efficiency by 50% post-automation. – AI-driven virtual assistants can manage 24/7 government service inquiries, reducing the workload on civil servants. 2) Strengthening Revenue Generation through Digital Platforms: – Nigeria’s Internally Generated Revenue (IGR) has the potential to grow beyond N3.4 trillion annually with better automation of tax collection. – Deployment of Digital Tax Collection Solutions to State Governments. Lagos State’s deployment of digital tax solutions increased revenue by 30% in 2022. – IT service providers can develop integrated digital tax payment systems for seamless transactions in the States and Local Governments. 3) Improved Cybersecurity & Data Protection in Public Sector Agencies – Nigeria loses over $500 million annually due to cyber breaches. – IT service providers can partner with Government MDAs to implement multi-layer security frameworks, including cloud-based security solutions, advanced threat detection, and blockchain-based transaction monitoring. – Compliance with ISO 27001, PCI DSS, and GDPR will be critical in protecting government data. 4) Infrastructure Modernisation & Cloud Adoption – Less than 25% of Nigerian government agencies have adopted cloud computing, leading to inefficiencies. – IT Service Providers can support Federal MDA’s transition to hybrid cloud models thereby reducing operational costs by 40%. – Public-Private Partnerships (PPPs) with leading cloud service providers can fast-track digital transformation. 5) Bridging the Digital Skills Gap – Over 60% of public sector employees lack digital literacy which often hinders the implementation of roadmap or adoption of new tools and solutions. – IT providers can offer capacity-building programs to accelerate the adoption of digital tools. – Partnerships with Tech Academies and e-learning platforms will ensure continuous staff training. 6) Smart City Initiatives & Digital Identity Management – Nigeria’s urbanization necessitates smart city solutions such as traffic monitoring, automated waste management, and public safety technologies. – NIMC’s National Identity Number (NIN) will soon commence the implementation of NIMC 2.0, a solution that will foster efficient governance, and accelerate nationwide digital identity verification. – Geographic Information System (GIS) mapping and Internet of Things (IoT)-driven solutions for monitoring and managing Critical National Infrastructure. Benefits of Digitalisation – FIRS as a Case Study Federal Inland Revenue Service (FIRS), in partnership with IT service providers, automated tax filing and compliance process, which significantly contributed to the increase in revenue collection from N5.3 trillion (2020) to N10.1 trillion (2023). This transformation underscores the impact of strategic digital adoption. Additionally, states like Ogun and Kaduna have launched digital tax solutions, improved compliance rates, reducing revenue leakages. Several ministries and agencies (75%) in the 3 tiers of government can leverage the expertise of IT service providers to improve their processes, secure assets, reduce running costs, increase revenue, boost cybersecurity and upskill employees. Conclusion and The Path Forward IT service providers are no longer just vendors; they are strategic partners in Nigeria’s digital governance agenda. With the right policies, infrastructure investment, and cybersecurity measures, Nigeria can unlock the full potential of e-Government, e-Citizens and digital public services. A multi-stakeholder approach is required: – Government agencies must embrace digital transformation by priming civil servants through training and value communication. – IT service providers must offer scalable, secure, and cost-effective solutions. – Private sector players must invest in digital infrastructure and skills development. By effectively integrating these elements, Nigeria’s public sector will become more transparent, efficient, and future-ready. At Heirs Technologies, we drive public sector digital transformation through innovative IT solutions, cloud computing, cybersecurity, and process automation. Our expertise enables government agencies to enhance e-government services, streamline digital workflows, and strengthen data security—ensuring efficiency, transparency, and seamless citizen engagement. With the right technology partners, Nigeria’s public sector can achieve smarter, more secure, and citizen-centric services—paving the way for a truly digital future.