Kano LGAs Receive ₦256.2bn Allocations in One Year, Nassarawa, Dala, Gwale Lead.
By Bala Salihu Dawakin Kudu
Democracy Newsline Newspaper
November 6, 2025
Between September 2024 and August 2025, the 44 Local Government Areas (LGAs) in Kano State collectively received ₦256.2 billion from the Federation Account Allocation Committee (FAAC), an analysis of official data has shown.
A monthly breakdown indicates that allocations to the councils have steadily risen over the period, reflecting improved national revenue performance and increased fiscal stability.
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In December 2024, Kano LGAs shared ₦22 billion, following ₦19 billion in November, ₦17.8 billion in October, and ₦16.2 billion in September 2024.
For the 2025 fiscal year, allocations began at ₦19.5 billion in January, rose sharply to ₦23.3 billion in February, and remained relatively stable through March (₦22.1 billion) and April (₦20.8 billion).
Subsequent months saw a consistent upward trajectory — ₦22.1 billion in May, ₦22.6 billion in June, ₦24.2 billion in July, and a peak of ₦26.6 billion in August 2025.
Officials attribute this steady rise to the broader national trend of revenue recovery, following earlier disruptions caused by oil output fluctuations, debt servicing pressures, and exchange rate adjustments.
Urban Councils Dominate Allocations.
In 2024 alone, Kano’s 44 LGAs collectively received about ₦214.5 billion, representing an average of ₦4.88 billion per LGA for the year. However, the figures show wide disparities between urban and rural councils.
According to the breakdown:
Nassarawa LGA topped the chart with ₦8.1 billion,
followed by Dala (₦6.6 billion),
Gwale, Kano Municipal, and Ungogo each received about ₦6 billion.
These five metropolitan LGAs together accounted for ₦32.8 billion, representing more than 15 percent of the total allocations to the state’s councils. Analysts say the higher disbursements to these areas reflect their dense populations, administrative importance, and higher cost of urban service delivery.
At the lower end, Tofa received the least with ₦3.8 billion, followed by Rimin Gado, Ghari, and Warawa (₦4 billion each), and Garun Mallam (₦4.1 billion). These predominantly agrarian and less-populated councils received allocations below the state average, highlighting persistent fiscal imbalances between urban and rural areas.
Mid-tier LGAs such as Kumbotso (₦5.4 billion), Gezawa (₦5.3 billion), and Bichi (₦5.3 billion) recorded moderate allocations, reflecting their middle positions in terms of population and economic activity.
Overall, 11 LGAs received above-average funds, while 33 received less, underlining the skewed fiscal distribution pattern in favour of metropolitan councils where infrastructure and population pressures are highest.
Expenditure Trends and Accountability Concerns
A review of the consolidated audited financial statements of Kano’s LGAs revealed that most councils remain heavily dependent on recurrent expenditure, leaving limited room for capital investment.
In 2023, LGAs collectively spent ₦74.3 billion on salaries, ₦21.9 billion on overheads, and ₦5 billion on social services. However, only ₦3.2 billion was spent on fixed asset procurement, ₦7.9 billion on construction and provision projects, and ₦2.2 billion on rehabilitation and repairs.
Analysts say this expenditure pattern underscores a critical governance issue: high administrative costs and limited investment in infrastructure and public services.
Fiscal Stability but Persistent Developmental Gaps
By the second quarter of 2025, FAAC disbursements to states had become more predictable, enabling better budget planning and execution across the federation. For Kano, this fiscal stability has been welcomed as it strengthens funding for infrastructure, education, and social services.
However, despite the improved inflows, developmental challenges persist, particularly in critical sectors such as water supply and primary healthcare.
Kano’s 2025 budget performance report revealed that only ₦1.5 million was spent on the Kano State Water Board in the first half of the year — out of a ₦7.5 billion budget allocation. This represents near-zero (0.0%) budget implementation despite widespread water scarcity across the state.
In May 2023, Governor Abba Kabir Yusuf had issued a one-week ultimatum to the management of the state Water Board to submit their needs, declaring a state of emergency to tackle the long-standing water shortage.
Yet, two years later, many communities — including Dala, Fagge, Gwale, Kano Municipal, Kumbotso, Tarauni, Nassarawa, and Ungogo — continue to grapple with irregular or non-existent water supply, relying heavily on boreholes and private water vendors.
The situation has sparked concerns over whether the increased allocations to LGAs are translating into tangible improvements in citizens’ welfare.
Calls for Reform and Equitable Development
Observers argue that while the steady rise in FAAC allocations — from ₦19.5 billion in January to ₦26.6 billion in August 2025 — signals stronger fiscal performance, the absence of transparent and accountable spending mechanisms undermines potential gains.
Economists and civic advocates are calling for a more equitable allocation formula, stronger fiscal oversight, and improved transparency in local government spending.
They also emphasize the need for targeted investment in rural infrastructure, primary healthcare, water, and education, which are crucial for sustainable development at the grassroots.
As Kano’s LGAs continue to receive record-high allocations, the key question remains: Are these funds improving lives on the ground — or merely expanding bureaucratic expenditure?
