Anambra tops 2025 Fiscal Performance Ranking – BudgIT

Anambra State has emerged as the best-performing state in Nigeria’s fiscal ranking, according to the 2025 edition of the BudgIT State of States Report.

The annual report, launched in Abuja on Tuesday, assesses the long-term fiscal sustainability and governance transparency of 35 states across the federation. Rivers State, which topped the chart in previous editions, was excluded from this year’s ranking.

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According to BudgIT, Rivers was omitted from the 2025 assessment due to the declaration of a state of emergency and its failure to produce an audited financial statement at the time of data compilation.

Lagos, Kwara, Abia, and Edo joined Anambra in the top five, while Cross River suffered a sharp decline—dropping from fifth place in 2024 to 30th in 2025. Other states such as Plateau, Kogi, Jigawa, Benue, and Yobe also recorded lower positions in the latest fiscal performance index.

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This year’s edition, which marks the 10th anniversary of the State of States report, is themed “A Decade of Subnational Fiscal Analysis: Growth, Decline, and Middling Performance.”

Looking back over a decade, Lagos and Rivers consistently led in IGR, with Borno and Ogun recording the fastest growth. Thirty states achieved at least a 200% increase in IGR within ten years.

The report also recorded increase in revenue for all the states in the last two years.

“The combined revenue of all 35 states in Nigeria increased significantly by 31.2% from N8.66tn in 2023 to N17.17tn. Lagos State earned N2.24tn, representing 13.04% of the cumulative revenue of the 35 States in 2024. Gross FAAC, which grew by 110.74% from N5.4tn in 2023 to N11.38tn in 2024, contributed to 66% of the year-on-year growth of the combined revenue of the 35 states.

“29 States relied on FAAC receipts for at least 50% of their total revenue, while 21 States relied on FAAC receipts for at least 70% of their total revenue. FAAC comprised at least 60% of the recurrent revenue of 30 states, except Lagos, Ogun and Enugu, while 31 States relied on federal transfers for at least 80% of their recurrent revenue,” the report stated.

On internally generated revenue, BudgIT noted that the states recorded significant progress.

According to BudgIT, “The aggregate Internally Generated Revenue (IGR) of the 35 states grew by 52.52% to N3.02tn from the N1.92tn garnered in 2023. 15 States grew their IGR by more than 50%, with Enugu recording the highest growth of 381.44%, while only 2 States recorded negative IGR growth, with Kebbi recording the worst decline among the 35 States.

“Tax revenue made up 66.58% of the cumulative IGR of the States while non-tax revenue accounted for 33.42%. The cumulative expenditure of the 35 states increased by 64.69% from N9.49tn in 2022 to N15.63tn in 2024. The aggregate operating expenses of the states which formed 41.96% of the aggregate expenditure, increased by 48.13% from 4.64tn in 2023 to 6.62tn in 2024”.

Interestingly, Lagos and Enugu are the only states generating enough internally to cover their operating expenses. Conversely, Abia, Anambra, Enugu, Ebonyi, and Taraba spent more than 70% of their budgets on capital projects—an encouraging trend.

On debt, BudgIT noted reasons for optimism. Domestic debt fell by ₦2 trillion, while foreign debt reduced by $200 million. Thirty-one states also reduced their domestic debt stock—an indicator of growing fiscal discipline.

Despite this growth, poverty remains widespread. The report urged that fiscal expansion must now focus on human development to translate revenue growth into improved living standards.

It also recommended a renewed focus on fiscal reforms, better prioritisation of education and health spending, and responsible debt management.

In his remarks, the Deputy Governor (Economic Policy) of the Central Bank of Nigeria, Dr. Muhammad Sani Abdullahi, said the State of States report has become a benchmark for evidence-based fiscal transparency.

He expressed concern that although states’ nominal revenues continue to expand, capital expenditure has begun to outpace recurrent spending.

Also speaking, BudgIT’s Global Director, Olusegun Olugbinde, said that despite noticeable improvements, inflation and fiscal dependency continue to undermine states’ financial health.

“As the title of this report reflects, we have gone through phases of growth, decline, and middling performance. We have gone from states having a surplus with strong macroeconomic fundamentals to 28 states out of 36 states not being able to pay salaries and operating costs. Yet, we must be honest with ourselves.

“Our nation is at a crossroads. Inflation rises faster than household earnings. Debt obligations are expanding faster than revenue reforms. Many states still rely excessively on federal allocations rather than building resilient local economies. The gap between potential and performance remains wide,” he said.

Olugbinde added that the State of States is not merely BudgIT’s report but a “public resource, a call to action, and a roadmap for reform.”

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