In a remarkable feat of fiscal discipline and strategic governance, Kano State has emerged as one of Nigeria’s fastest-growing revenue-generating states in 2024, achieving a staggering 100% increase in its Internally Generated Revenue (IGR). This milestone underscores the state’s commitment to financial independence at a time when many Nigerian states grapple with economic challenges and dependency on federal allocations. The surge in IGR, which soared from ₦37.38 billion in 2023 to an impressive ₦74.77 billion in 2024, reflects a bold and transformative approach to revenue management under the leadership of Governor Abba Kabir Yusuf. This achievement not only highlights Kano’s economic potential but also sets a benchmark for other states striving for fiscal autonomy.
A Leap in Revenue: The Numbers Tell the Story
According to data released by the National Bureau of Statistics (NBS) and corroborated by Statista, Kano State’s IGR doubled within a single year, marking a 100% growth rate. This places Kano among the top performers in Nigeria’s IGR landscape for 2024, second only to Enugu State, which recorded an extraordinary 433% increase to reach ₦180.50 billion. While Enugu’s absolute figures are higher, Kano’s percentage growth is a testament to the state’s rapid progress in harnessing its internal revenue potential. The ₦74.77 billion generated in 2024 represents a significant leap from the ₦37.38 billion collected in 2023, showcasing the effectiveness of the state’s fiscal reforms.
This achievement is particularly noteworthy given the broader context of Nigeria’s economic challenges. Many states struggle to reduce their reliance on federal allocations, which are often subject to fluctuations due to global oil prices and other macroeconomic factors. Kano’s ability to double its IGR signals a shift toward greater self-sufficiency, positioning the state as a model for others seeking to bolster their financial independence.
Strategic Reforms: The Engine of Growth
The dramatic increase in Kano’s IGR did not happen by chance. It is the result of deliberate and well-executed reforms spearheaded by Governor Abba Kabir Yusuf’s administration. Immediately after assuming office, the governor prioritized fiscal restructuring, focusing on transforming the Kano State Internal Revenue Service (KIRS) into a more efficient and effective institution. According to Ibrahim Adam, the Governor’s Special Adviser on Information, the administration’s swift action was pivotal in achieving this financial milestone.
“The administration of Governor Abba Kabir Yusuf, immediately after being sworn in, swung into action and doubled the state’s revenue generation by overhauling the Kano State Internal Revenue Service,” Adam stated in a press release. The overhaul involved streamlining operations, enhancing transparency, and plugging longstanding leakages in the revenue collection system. By addressing inefficiencies and loopholes, the administration was able to significantly boost revenue without resorting to excessive taxation.
A key element of the reform was the strategic appointment of highly competent personnel to lead the KIRS. Governor Yusuf’s decision to bring in “one of the best hands” to manage revenue generation was a game-changer. These professionals introduced innovative strategies and modernized processes, ensuring that the state maximized its revenue potential. The focus on merit-based appointments underscores the administration’s commitment to competence and results-driven governance.
Protecting the Vulnerable: A Balanced Approach
One of the standout features of Kano’s IGR growth is the administration’s commitment to protecting low-income earners from excessive tax burdens. Unlike the previous administration, which was criticized for exploiting vulnerable groups such as Adaidaita Sahu tricycle riders, Governor Yusuf’s government adopted a more equitable approach. “The financial success was achieved primarily by blocking leakages and loopholes, rather than burdening the populace with new taxes,” Adam explained.
This approach reflects a broader philosophy of inclusive governance. By prioritizing the welfare of low-income earners, the administration ensured that the benefits of increased revenue would be felt across all segments of society. The decision to avoid overtaxing small-scale workers and businesses demonstrates a nuanced understanding of the economic realities faced by many Kano residents. Instead of squeezing the poor, the government focused on optimizing existing revenue streams and improving collection efficiency.
Funding Development: The Impact of Increased IGR
The doubling of Kano’s IGR has had a transformative impact on the state’s ability to fund critical infrastructure and development projects. With ₦74.77 billion in internally generated revenue, the state is better equipped to address pressing needs in areas such as transportation, healthcare, education, and urban development. “People are asking where the government is getting the funds for infrastructural projects—this is the only way,” Adam remarked, emphasizing that the increased IGR is the backbone of the state’s ambitious development agenda.
Kano’s infrastructure projects, which include road construction, water supply improvements, and urban renewal initiatives, are now being financed primarily through internal resources rather than loans or federal handouts. This shift not only enhances the state’s financial independence but also reduces the risk of accumulating unsustainable debt. The ability to fund development projects internally is a significant step toward long-term economic stability and growth.
Moreover, the increased revenue has enabled the state to invest in social programs that directly benefit its citizens. By channeling funds into education and healthcare, for instance, the government is addressing key human development indicators that are critical for sustainable progress. The ripple effects of these investments are likely to be felt for years to come, as improved infrastructure and social services lay the foundation for economic prosperity and improved quality of life.
Kano in Context: A National Perspective
While Kano’s 100% IGR growth is a remarkable achievement, it is useful to place it within the broader context of Nigeria’s fiscal landscape. Enugu State’s 433% growth to ₦180.50 billion is a standout performance, driven by its own set of reforms and economic policies. However, Kano’s progress is no less significant, particularly given its larger population and diverse economic base. As one of Nigeria’s most populous states, Kano faces unique challenges in revenue generation, making its 100% growth rate all the more impressive.
The success of states like Kano and Enugu highlights the importance of innovative governance and fiscal discipline in achieving economic progress. While some states continue to rely heavily on federal allocations, those that prioritize IGR growth are better positioned to weather economic uncertainties and drive sustainable development. Kano’s achievement serves as an inspiration for other states, demonstrating that with the right policies and leadership, significant financial progress is possible even in challenging times.
Challenges and the Road Ahead
Despite its success, Kano State must navigate several challenges to sustain and build on its IGR growth. Ensuring the continued efficiency of the KIRS will be critical, as will maintaining public trust in the revenue collection process. Transparency and accountability must remain at the forefront to prevent a relapse into the inefficiencies of the past. Additionally, the state must continue to balance revenue generation with the need to protect vulnerable populations from undue financial strain.
Another challenge lies in diversifying revenue sources. While the current reforms have yielded impressive results, over-reliance on a few streams could pose risks in the long term. Exploring new sectors, such as agriculture, technology, and small-scale industries, could further bolster the state’s revenue base. Investments in these areas could also create jobs and stimulate economic growth, creating a virtuous cycle of development.
A Model for Nigeria
Kano State’s doubling of its IGR in 2024 is a powerful testament to the impact of visionary leadership and strategic reforms. By overhauling the KIRS, appointing competent personnel, and prioritizing equitable revenue collection, the administration of Governor Abba Kabir Yusuf has set a new standard for fiscal management in Nigeria. The ₦74.77 billion generated in 2024 is not just a number—it represents the state’s ability to fund its own development, reduce reliance on external resources, and improve the lives of its citizens.
As other states look to Kano’s example, the lessons are clear: transparency, efficiency, and inclusivity are key to unlocking financial potential. By continuing on this path, Kano is poised to become a beacon of economic progress in Nigeria, demonstrating that with the right policies, any state can achieve fiscal independence and sustainable growth.
