Kano State Governor, Abba Kabir Yusuf, has submitted a supplementary and amendment budget proposal of N1.2 trillion for the 2026 fiscal year to the State House of Assembly. The proposal was presented in a correspondence read by the Speaker of the House, Jibril Isma’il Falgore, during a plenary session in Kano. This move is aimed at addressing the state's financial adjustments due to changes in revenue projections.
The need for a supplementary budget arose from a shortfall in revenue accruing to the state from the Federation Account, following the implementation of a new tax law. The state had anticipated increased receipts from the Federation Account, including Value Added Tax (VAT). However, some expected revenues, such as signature bonuses, exchange differences, and NNPC refunds, have not been received from the Federal Government.
The proposed supplementary budget plans to finance the additional appropriation with N45 billion from the opening balance, N753.44 billion in recurrent revenue, and N402.82 billion in capital receipts. This brings the total proposed supplementary budget to N1.201 trillion. The expenditure breakdown includes N390.31 billion for recurrent expenditure and N810.95 billion for capital expenditure.
A detailed breakdown of the recurrent expenditure shows that N169.96 billion is allocated for personnel costs, N195.21 billion for overheads, and N24.62 billion for debt servicing. The governor emphasized the need for the lawmakers to consider and approve the supplementary budget expeditiously, citing Section 122(a) and (b) of the 1999 Constitution, as amended.
In addition to the budget proposal, Governor Yusuf also proposed a new partnership arrangement between the state and local governments. This arrangement aims to promote economic growth and development by capturing jointly generated revenue and deploying it to finance selected development projects. The governor believes this partnership will enhance the state's financial capacity.
The House of Assembly has referred the proposed supplementary and amendment budget to the relevant committee for further legislative consideration. This committee will review the proposal and provide recommendations for approval or adjustments. The governor's request for expeditious approval underscores the importance of the supplementary budget in addressing the state's financial needs.
The approval of the supplementary budget will enable the state to implement its development plans and address any financial shortfalls. The governor's proposal reflects the state's efforts to manage its finances effectively and ensure sustainable development. The State House of Assembly's consideration of the proposal will determine the next steps in the budget approval process.
Key points
- The Kano State Governor, Abba Kabir Yusuf, has submitted a N1.2 trillion supplementary budget proposal for 2026.
- The supplementary budget is necessitated by a shortfall in revenue from the Federation Account.
- The proposed budget includes a new partnership arrangement between the state and local governments to promote economic growth.
