Katsina warns of fiscal risks as FAAC accounts for 87% of recurrent revenue
Malik Anas, Commissioner for Finance in Katsina State, has cautioned that the state faces heightened revenue vulnerability due to sustained dependence on allocations from the Federation Account. Anas said inflows
Malik Anas, Commissioner for Finance in Katsina State, has cautioned that the state faces heightened revenue vulnerability due to sustained dependence on allocations from the Federation Account.
Anas said inflows from the Federation Account Allocation Committee (FAAC) constitute over 87 per cent of the state’s total recurrent revenue in the 2025 budget, underscoring continued reliance on federally distributed funds to finance core operations.
He noted that such concentration exposes the state’s fiscal position to external macroeconomic and policy risks, constrains medium-term planning, and reinforces the need to diversify revenue sources while strengthening internally generated revenue to improve fiscal sustainability.
The commissioner also identified 44 Ministries, Departments, and Agencies (MDAs) with low budget implementation and performance levels for the 2025 fiscal year.
Anas disclosed this during the state’s bi-monthly press conference held at the official residence of the Deputy Governor, Faruk Lawal.
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He stated that the Finance Ministry recorded 49.99 per cent performance among the 44 MDAs with low implementation rates. According to him, the Katsina State Scholarship Board posted 49.61 per cent, the Office of the Economic Adviser recorded 47.52 per cent, while the state Audit Service Commission reported zero per cent performance.
He said, ''We have 44 Ministries, Departments, and Agencies with low-performing 2025 budget implementation. Unfortunately, the Ministry of Budget and Economic Planning is among them with a performance rate of 49.99 percent.”
The commissioner also listed the Katsina Sharia Court of Appeal and the state Board of Internal Revenue as the highest performing MDAs with 100 per cent budget implementation each in the 2025 fiscal year.
He described diversification of revenue sources and strengthening internally generated revenue streams to enhance fiscal responsibility as of utmost priority to the state government.
