Katsina Pays January Salaries Despite FAAC Shortfall
Katsina State Government has paid January salaries to civil servants and pensioners despite the shortfall recorded in allocations from the Federation Account Allocation Committee (FAAC).
The development comes at a time when several states across the country are struggling to meet salary obligations following a decline in federally shared revenue. Officials of the Katsina State Government attributed the timely payment to prudent financial management, fiscal discipline, and effective prioritisation of workers’ welfare.
A senior government source said the administration had anticipated revenue fluctuations and adopted measures to cushion their impact, including cutting non-essential spending and strengthening internal revenue management.
“Workers’ salaries remain a top priority of the government. Despite the FAAC challenges, the state has maintained financial discipline to ensure obligations to workers and retirees are met promptly,” the source said.
FAAC allocations in recent months have been affected by fluctuating oil revenues, foreign exchange pressures, and rising national expenditure, putting pressure on state finances nationwide.
Civil servants in Katsina welcomed the development, describing the payment as a relief amid rising living costs and economic uncertainty. Labour unions in the state also commended the government for honoring its commitment, urging it to sustain the approach in subsequent months.
Analysts say Katsina’s ability to pay salaries despite reduced federal inflows underscores the importance of prudent budgeting, transparency, and diversification of revenue sources at the subnational level.
