In a recent public statement, Abdullahi Umar Ganduje, the former governor of Kano State and former National Chairman of the All Progressives Congress (APC), made a striking revelation about the financial allocations received by Kano State during his tenure compared to that of his successor, Governor Abba Kabir Yusuf. Ganduje claimed that the current administration, in just six months, received more federal allocations than his government did throughout his eight-year tenure from 2015 to 2023. This statement has ignited discussions about Nigeria’s federal allocation system, fiscal transparency, and the economic challenges faced by state governments, particularly in the context of Kano, one of Nigeria’s most populous and politically significant states.
Ganduje’s Tenure and Financial Context
Abdullahi Umar Ganduje served as the governor of Kano State for two terms, from May 29, 2015, to May 29, 2023. His administration was marked by ambitious infrastructure projects, political controversies, and efforts to modernize Kano’s economy. Kano State, located in Nigeria’s northwest, is a commercial hub with a rich history and a large population, estimated at over 15 million people according to projections from the 2006 census. The state relies heavily on federal allocations, as do most Nigerian states, due to limited internally generated revenue (IGR) relative to its budgetary needs.
During Ganduje’s tenure, Nigeria’s economy faced significant challenges, including a recession in 2016–2017, fluctuating global oil prices, and the economic disruptions caused by the COVID-19 pandemic in 2020–2021. These factors directly impacted the federal government’s revenue, which in turn affected the monthly allocations disbursed to states through the Federation Account Allocation Committee (FAAC). The FAAC, chaired by the Federal Ministry of Finance, distributes revenue among the federal, state, and local governments based on a formula that considers factors like population, landmass, and revenue generation capacity.
Ganduje’s administration often highlighted its efforts to deliver infrastructure despite these economic constraints. Projects such as road construction, urban renewal in Kano metropolis, and investments in education and healthcare were frequently cited as achievements. However, critics argued that the state’s debt profile grew significantly under Ganduje, raising questions about financial management and transparency. According to data from the Debt Management Office (DMO), Kano State’s domestic and external debt increased during Ganduje’s tenure, a trend attributed to borrowing for capital projects and recurrent expenditure.
The Claim: Six Months vs. Eight Years
Ganduje’s recent statement, made during a public event, has drawn significant attention due to its implications for fiscal governance and political accountability. He claimed that the current Kano State government, led by Governor Abba Kabir Yusuf of the New Nigeria People’s Party (NNPP), received more federal allocations in its first six months (May 2023 to November 2023) than his administration received over eight years. While Ganduje did not provide specific figures in the reported statement, the claim suggests a dramatic disparity in federal funding, raising questions about the factors driving this difference.
To understand this claim, it’s essential to examine the mechanics of Nigeria’s federal allocation system. The FAAC disburses funds monthly, with states receiving a share of revenue from sources such as oil sales, taxes, and other federal receipts. The allocation formula allocates 52.68% of the revenue to the federal government, 26.72% to states, and 20.60% to local governments, with additional considerations for derivation (for oil-producing states) and other criteria. Kano, as a non-oil-producing state with a large population, typically receives one of the highest allocations among Nigeria’s 36 states due to its demographic weight.
Several factors could explain the apparent increase in allocations under Yusuf’s administration. First, the removal of the fuel subsidy by the federal government in May 2023, announced by President Bola Ahmed Tinubu, significantly increased federal revenue. The subsidy, which cost Nigeria trillions of naira annually, was a major drain on public finances. Its removal led to higher revenue inflows to the FAAC, as funds previously used to subsidize fuel prices were redirected to the federation account. This policy change coincided with the start of Yusuf’s administration, potentially resulting in higher monthly allocations to Kano State.
Second, the devaluation of the naira, implemented as part of the Tinubu administration’s economic reforms, increased the naira value of oil revenues, which are earned in US dollars. Nigeria, as an oil-dependent economy, benefits from higher naira-denominated revenue when the exchange rate weakens. For example, the naira, which traded at around N460 to $1 in May 2023, depreciated to over N700 by late 2023, boosting the naira value of oil earnings. This likely contributed to larger FAAC disbursements to states, including Kano.
Third, improvements in non-oil revenue, such as taxes collected by the Federal Inland Revenue Service (FIRS), may have bolstered federal coffers. The FIRS reported increased revenue collection in 2023, driven by enhanced tax compliance and digitalization of tax processes. These factors combined to create a larger revenue pool for distribution, potentially supporting Ganduje’s claim.
Analyzing the Numbers
While Ganduje’s statement lacks specific figures, a rough estimate can provide context. During his tenure, Kano State’s monthly FAAC allocations typically ranged between N4 billion and N7 billion, depending on oil prices and federal revenue. For instance, in 2016, during the economic recession, allocations dropped significantly due to low oil prices. In contrast, periods of high oil prices, such as 2018–2019, saw higher disbursements. Assuming an average of N5 billion per month over eight years (96 months), Kano State would have received approximately N480 billion in federal allocations during Ganduje’s tenure.
In contrast, reports from 2023 indicate that Kano State’s monthly allocations increased significantly after the fuel subsidy removal. Some states reported receiving up to 50–70% more than previous years, with monthly disbursements for Kano likely exceeding N10 billion in some months. If Yusuf’s administration received an average of N12 billion per month for six months, the total would be approximately N72 billion. While substantial, this figure is far less than N480 billion, suggesting that Ganduje’s claim may be an exaggeration or based on specific metrics not fully disclosed.
However, Ganduje’s statement could also reflect cumulative allocations, including special funds, grants, or interventions not part of regular FAAC disbursements. For example, the federal government occasionally provides bailout funds, refunds for infrastructure projects, or other financial support to states. If such funds were included in Ganduje’s comparison, they could skew the numbers. Without detailed data, it’s challenging to verify the claim definitively.
Political Implications
Ganduje’s statement is not merely a financial observation but also a politically charged remark, given the rivalry between him and Governor Yusuf. The two leaders belong to opposing political parties—Ganduje with the APC and Yusuf with the NNPP. Their relationship has been fraught with tension, particularly following Yusuf’s victory in the 2023 gubernatorial election, which ended the APC’s dominance in Kano. Ganduje’s tenure was marked by a high-profile fallout with his former political ally, Rabiu Kwankwaso, the NNPP leader and mentor to Yusuf. This political context adds a layer of complexity to Ganduje’s claim, as it could be interpreted as an attempt to undermine the current administration’s achievements or highlight perceived inequities in federal support.
Yusuf’s administration has prioritized social programs, infrastructure, and settling debts inherited from Ganduje’s government. The increased allocations, if accurate, would provide a financial cushion to pursue these goals. However, critics argue that the current government must demonstrate prudent financial management to avoid the pitfalls of previous administrations, such as rising debt levels. Kano’s debt profile, which includes domestic loans and foreign borrowings, remains a concern for analysts monitoring the state’s fiscal health.
Economic and Social Context
Kano State’s economic landscape is shaped by its role as a commercial and agricultural hub. The state is known for its vibrant markets, such as Dawanau and Kantin Kwari, and its agricultural output, including grains, cotton, and groundnuts. Despite its economic potential, Kano faces challenges such as high poverty rates, unemployment, and inadequate infrastructure. Federal allocations are critical to addressing these issues, as the state’s IGR—estimated at N40–50 billion annually—falls short of its budgetary needs.
The increased allocations under Yusuf’s administration, if substantiated, could enable investments in critical sectors. For example, education in Kano has long been a priority, with the state grappling with a high number of out-of-school children, particularly girls. The Yusuf administration has promised free education and infrastructure upgrades, which require significant funding. Similarly, healthcare improvements, such as equipping primary health centers and addressing maternal mortality, depend on robust financial resources.
However, the reliance on federal allocations underscores a broader challenge in Nigeria’s federal structure: the limited fiscal autonomy of states. Many states, including Kano, generate less than 20% of their revenue internally, making them vulnerable to fluctuations in federal disbursements. Experts argue that states must diversify their economies, improve tax collection, and invest in revenue-generating projects to reduce dependence on FAAC funds.
Transparency and Accountability
Ganduje’s claim also raises questions about transparency in the management of federal allocations. During his tenure, allegations of mismanagement and corruption surfaced, including a high-profile video allegedly showing Ganduje receiving bribes, which he denied. These controversies fueled public skepticism about the use of public funds in Kano. Yusuf’s administration has pledged to probe financial dealings under Ganduje, further intensifying the political rivalry.
For ordinary Kano residents, the debate over allocations is more than a political spat—it’s a matter of tangible impact. Increased funding could translate into better roads, schools, hospitals, and job opportunities, but only if managed effectively. Civil society groups have called for greater transparency in how both federal and state governments utilize FAAC funds, including regular publication of allocation details and project expenditures.
Broader Implications for Nigeria
Ganduje’s statement reflects broader trends in Nigeria’s fiscal federalism. The surge in federal allocations following the fuel subsidy removal has benefited many states, but it has also highlighted disparities in financial management. Some states have used the additional funds to clear salary arrears, fund infrastructure, or invest in social programs, while others face criticism for wasteful spending. The debate in Kano underscores the need for a more equitable and transparent allocation system that incentivizes fiscal responsibility.
Moreover, the economic reforms of the Tinubu administration, including subsidy removal and naira devaluation, have had mixed effects. While they have boosted federal revenue, they have also increased living costs, with inflation reaching 32.15% in August 2023, according to the National Bureau of Statistics. For Kano residents, higher allocations to the state government may be offset by rising prices for fuel, food, and other essentials, limiting the real impact of increased funding.
Conclusion
Abdullahi Umar Ganduje’s claim that the current Kano State administration received more federal allocations in six months than his government did in eight years has sparked a heated debate about Nigeria’s fiscal system, political accountability, and the economic realities of governance. While the claim may reflect increased FAAC disbursements due to federal policy changes, it also underscores the political tensions between Ganduje and Yusuf, as well as the broader challenges of fiscal transparency and state-level financial management.
For Kano State, the increased allocations present an opportunity to address longstanding developmental challenges, from education and healthcare to infrastructure and poverty reduction. However, the state’s success will depend on how effectively these funds are utilized and whether the government can diversify its revenue sources to reduce dependence on federal handouts. As Nigeria navigates its economic reforms, the case of Kano highlights the complexities of balancing fiscal federalism, political rivalry, and the urgent needs of citizens.
The debate sparked by Ganduje’s statement is unlikely to fade soon, as it touches on issues of equity, accountability, and governance that resonate across Nigeria. For now, residents of Kano and observers nationwide will be watching closely to see how the Yusuf administration leverages its financial resources—and whether it can deliver on its promises in a way that distinguishes it from its predecessor.
