The area of present-day Nikaho was part of ancient Ugo Province, dominated by the Satake clan during the Edo period, who ruled Kubota Domain under the Tokugawa shogunate.

After the start of the Meiji period, it became part of Yuri District, Akita Prefecture in 1878 with the establishment of the modern municipalities system.

Nikaho has a mayor-council form of government with a directly elected mayor and a unicameral city legislature of 18 members.

In terms of national politics, the city is part of Aichi District 3 of the lower house of the Diet of Japan.

The economy of Nikaho is based on commercial fishing and agriculture centered on rice cultivation, and light manufacturing.

A one-way hike from the Nakajima commonly takes 4 hours and offers outstanding views of the Japan Sea coast and the lush greenery of the Nikaho area.