Kano State Governor Abba Yusuf has transmitted a supplementary and amendment budget of N1.201 trillion for the 2026 fiscal year to the state House of Assembly. The budget was submitted in a letter read by the Speaker of the House, Isma’il Falgore, during a plenary session. The governor explained that the supplementary budget was necessary due to a shortfall in state receipts from the Federation Account.
The shortfall was attributed to the implementation of the new tax law and lower-than-expected inflows from the Federation Account, particularly Value Added Tax (VAT). The state had anticipated higher receipts, including signature bonuses, exchange differences, and NNPC refunds, but these remained with the federal government. As a result, the governor proposed a supplementary budget to ensure the state's continued development and growth.
The proposed supplementary budget will be financed through an opening balance of N45 billion, recurrent revenue of N753.440 billion, and capital receipts of N402.821 billion. These sources are expected to generate a total of N1.201 trillion to fund the proposed appropriation. The budget breakdown shows that N390.314 billion will be allocated for recurrent expenditure and N810.946 billion for capital expenditure.
The recurrent expenditure comprises N169.961 billion for personnel costs, N195.207 billion for overhead costs, and N24.616 billion for debt servicing. The governor also disclosed a new partnership arrangement between the state and local governments to improve economic growth and development. This arrangement will enable jointly accruing revenue to be captured and utilized to finance selected development projects.
The partnership arrangement aims to boost economic growth and development in the state. By working together, the state and local governments can identify areas of need and allocate resources effectively. The governor emphasized the importance of this partnership in his letter to the state assembly.
Governor Yusuf urged the Assembly to consider the proposal expeditiously, citing Section 122(a) and (b) of the 1999 Constitution, as amended. The Speaker of the House, Isma’il Falgore, subsequently referred the bill to the Rules and Business Committee for further legislative processing. The committee will review the proposal and make necessary recommendations for consideration by the House.
The Kano State House of Assembly will review the supplementary budget proposal and make a decision on its approval. The governor's submission of the budget proposal is a critical step in ensuring the state's continued development and growth. The assembly's consideration of the proposal will determine the fate of the supplementary budget and its potential impact on the state's economy.
Key points
- Kano State governor submits N1.201 trillion supplementary budget to state assembly
- Shortfall in state receipts from Federation Account attributed to new tax law
- Supplementary budget aims to improve economic growth and development in Kano State
