Kano LGAs receive N256.2bn allocations in one year, Nassarawa, Dala, Gwale lead

By Abdullateef Abubakar Jos On Nov 6, 2025

Kano, allocations, one, Nassarawa, Dale, Gwale, FAAC, — Kano LGAs receive N256.2bn allocations in one year, Nassarawa, Dale, Gwale lead

By Aminu Abubakar

Between September 2024 and August 2025, 44 LGAs in Kano collectively received N256.2 billion.

The breakdown of the allocation in December 2024 stood at N22 billion, that of November 2024 stood at N19 billion, October N17.8 billion and September 2024 N16.2 billion.

For the 2025 fiscal year, the LGA allocations began the year 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 steady climb: ₦22.1 billion in May, ₦22.6 billion in June, ₦24.2 billion in July, and a peak of ₦26.6 billion in August.

The allocations to LGAs have maintained a synchronized upward movement, rising month after month since April. This consistency reflects a broader national trend of revenue recovery after earlier disruptions caused by oil output fluctuations, debt servicing pressures, and exchange rate adjustments.

Kano LGAs Shared ₦214.5 Billion Federal Allocation in 2024

Kano State’s 44 Local Government Areas (LGAs) collectively received about ₦214.5 billion from the Federation Account in 2024, analysis of official data shows. The figure represents an average of ₦4.88 billion per LGA for the year, with wide disparities between urban and rural councils.

According to the breakdown, Nassarawa LGA topped the chart with ₦8.1 billion, followed by Dala with ₦6.6 billion, while Gwale, Kano Municipal, and Ungogo each received around ₦6 billion.

These five metropolitan LGAs alone accounted for roughly ₦32.8 billion — representing more than 15 percent of the total allocation to the state’s councils. Analysts say the higher disbursements to these areas reflect their dense populations, administrative roles, and the higher cost of providing urban services.

At the lower end, Tofa received the least with ₦3.8 billion, followed by Rimin-Gado, Ghari, and Warawa, which each got ₦4 billion, and Garun Mallam with ₦4.1 billion. These councils, largely agrarian and less populated, received allocations well 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 position in terms of population and economic activity. The difference between the highest and lowest allocations stood at ₦4.3 billion, underlining significant disparity in distribution across the state.

Overall, 11 LGAs received above-average funds, while 33 received less. The data underscores how fiscal distribution in Kano continues to favour metropolitan councils, where population pressure and infrastructure demands remain highest. Observers have, however, called for more balanced allocation formulas to address developmental gaps and improve service delivery in rural communities, which remain critical to the state’s agricultural and economic growth.

Kano LGAs Heavy on Recurrent Expenditure, Weak on Capital Needs

A SolaceBase review of consolidated audited financial statements of local governments in Kano State shows that the LGAs are heavy on salaries and overhead expenditures but spend far less on capital projects.

For instance, ₦74.3 billion was spent on salaries in 2023, and another ₦21.9 billion on overhead expenses, while social services stood at ₦5 billion. Meanwhile, only ₦3.2 billion was spent on procuring fixed assets during the same period; construction and provision accounted for ₦7.9 billion, while rehabilitation and repairs amounted to ₦2.2 billion.

The 2025 LGA FAAC OUTLOOK

By the second quarter of the year, FAAC disbursements to states had become more predictable, giving state governments greater capacity to plan and execute budgets without the volatility that characterized earlier years. For Kano, this has been a welcome development, particularly in financing infrastructure projects, education, and social services.

Despite these improvements, Kano State continues to face perennial developmental issues.

For instance, despite prevailing issues of water scarcity in Kano, a SolaceBase review of the state’s budget performance document for the first half of 2025 shows that only ₦1.5 million was spent on its water board.

This is despite a budget of ₦7.5 billion allocated for the water board in the 2025 fiscal year. To put it into context, the state noted that spending ₦1.5 million in six months for the state water board — despite a ₦7.5 billion budget — meant that 0.0% budget implementation was achieved.

In May 2023, the Kano State governor, Abba Kabir Yusuf, gave a one-week ultimatum to the management of the Kano State Water Board to submit their demands.

Addressing the media, the governor expressed his administration’s commitment to resolving the water scarcity issue, stating, “We have declared a state of emergency to tackle the problem of water shortage across the state.”

Areas worst hit by the perennial water scarcity were listed to include Dala, Fagge, Gwale, Kano Municipal, Kumbotso, Tarauni, Nassarawa, and Ungogo, as residents of these areas depend more on the state water board, boreholes, and water vendors as their primary sources of water for daily use.

The money disbursed to Kano’s 44 local government areas in one year marks a significant financial inflow at the grassroots level, indicating a stronger fiscal position than in previous years. The consistent rise from ₦19.5 billion in January to ₦26.6 billion in August underscores improved revenue performance and suggests that local administrations are receiving a more reliable share of the national allocation pool. This growth pattern also highlights how federal fiscal stability — buoyed by reforms in the oil and exchange rate sectors — is filtering down to local governance structures. Yet, the question remains whether these funds are translating into tangible development outcomes across the LGAs.

However, the disparity between allocations and actual spending priorities exposes a critical governance gap. Despite billions flowing into local and state accounts, key sectors like water supply remain grossly underfunded in practice. Spending only ₦1.5 million out of a ₦7.5 billion allocation for the Kano State Water Board within six months — representing 0.0% budget implementation — illustrates a troubling disconnect between budgetary intent and execution, even as water remains essential for Kano residents, including those in rural areas. The figures reveal that while fiscal inflows are robust, weak institutional accountability and poor project delivery continue to hinder progress, raising concerns about whether the increased federal allocations are yielding the intended socio-economic benefits for Kano residents.

Not just water, there have also been concerns over the poor state of Primary Health Centres in Kano State, with inadequate infrastructure and facilities identified as a major issue of concern.