Can Digital Technology Fix Efficiency and Accountability in Nigeria’s Government Agencies?

When the Central Bank of Nigeria (CBN) established the DocFlow and the MDA Naira Payment Solution in January, it aimed to improve official workflows, efficiency, and accountability in many government parastatals. The CBN governor, Olayemi Cardoso, said he was confident these initiatives would cut costs, speed up processes, and improve service delivery across the board.

On one hand, the DocFlow system was created to digitalise the daily operations of government workers, replacing paper-heavy processes with a fully digital document management system. The new scheme streamlines approvals, reducing physical paperwork, and saving time. Experts have described the CBN’s latest move as a big win for the environment, as it reduces the need for paper and contributes to sustainability. Excited about the launch, CBN governor Cardoso said it is a pivotal moment in the bank’s digital transformation efforts, which started with the “Digital First” strategy in December 2023.

The MDA Naira Payment Solution, on the other hand, focuses on automating payment processes for Ministries, Departments, and Agencies (MDAs), with a system promising to make transactions faster and more accurate while also preventing fraud and reducing errors. Digital infrastructure experts told HumAngle that this initiative will be “wonderful if well implemented” because it is expected to reduce redundancy and inefficiency in government institutions.

“The MDAs Naira Payment Solution is considered a game-changer in the CBN’s financial transaction management. It is projected to improve payment turnaround time by 70 per cent and further enhance Nigeria’s financial ecosystem,” the CBN said in a statement.

The governor said the digital initiatives were developed in-house, achieving significant cost savings of internal resources. He added that CBN’s commitment to leveraging technology to enhance operational efficiency, foster sustainability, and improve service delivery.

Emem Usoro, CBN’s Deputy Governor of Operations, echoed this sentiment, describing the solutions as proof of the bank’s dedication to automating processes and putting stakeholders first. Emem noted that these solutions reflect the apex bank’s ongoing commitment to innovation.

For decades, concerned Nigerians advocated for a digital system that boosts the efficiency and transparency of government parastatals. In 2024, for instance, a national assembly panel tackled MDAs and government-owned enterprises over “poor” revenue remittances to the federal government. Sani Musa, chairman of the Senate Committee on Finance and James Faleke, his House of Representatives counterpart, expressed worries over the issue. 

The MDAs involved in the scrutiny include the Nigeria Customs Service (NCS), Federal Road Safety Commission (FRSC), Joint Admissions and Matriculation Board (JAMB), Nigeria Immigration Service (NIS), Nigeria Communications Commission (NCC), and Fiscal Responsibility Commission (FRC).

Sani said the gap between revenues generated by the MDAs and what they remitted is worrisome. “This trend undermines the government’s capacity to fund critical infrastructure and social services, calling to question issues of inefficiency, mismanagement and possible revenue leakages,” he said. “Let us approach these tasks with a shared commitment to building a stronger and more accountable fiscal framework for Nigeria.”

However, Samuel Jekeli, an official of the Centre for Social Justice, an Abuja-based knowledge institution, said digital technology offers a powerful solution to inefficiency, corruption, and bribery in government agencies, by enabling greater transparency, efficiency, and accountability in governance, noting that digitalising public services could prove to be a pivotal step, as it has the potential to transform how citizens interact with the government and receive essential services.

“Cash transactions in government processes are often gateways for corrupt practices, as they are difficult to trace and lack transparency; implementing electronic payment systems for transactions such as licensing fees, fines, and government services can help eliminate cash handling, thereby reducing the potential for bribery,” Samuel argued, adding that payments are made through digital platforms, all transactions can be recorded and audited, leaving a paper trail that discourages corrupt behaviour.

The social justice advocate also noted that real-time data collection and monitoring systems provide transparency in government projects and ensure that allocated funds are used as intended. By leveraging technology, he said, public officials, media, and civil society can track the progress and expenditures of projects such as road construction, school renovations, and healthcare initiatives. 

“For instance, mobile applications can allow citizens to report issues, upload photographs of stalled projects, or verify the completion of public works. This kind of accountability helps build a culture of transparency and strengthens citizen trust in public services,” he added.

Danjuma Muhammad, an official of the Nigerian Immigration Service, said the DocFlow and the new payment system for MDAs will go a long way to improve accountability in many government agencies. He stressed that some of Nigeria’s government workers are redundant and lack transparency, noting that a policy such as this will foster productivity at all times.

“The only problem we have in Nigeria is implementation,” he said. “In Nigeria, we have so many great policies that have not been implemented and I hope this one is not the same. If this initiative is well monitored, to sanitise MDAs, then we will get things right in this country.”

This report is produced as part of the DPI Africa Journalism Fellowship Programme, a collaboration between the Media Foundation for West Africa and Co-develop.