Anambra State has emerged as the best-performing state in Nigeria’s 2025 Fiscal Performance Ranking, according to BudgIT’s State of States Report, released on Tuesday.

Lagos, Kwara, Abia, and Edo followed in the top five, while Cross River suffered a major decline, dropping from fifth in 2024 to 30th in 2025.

Rivers State, a consistent top-five performer in previous years, was excluded from this year’s report due to the state of emergency declared earlier in the year, which prevented the release of audited data.

In a statement shared on X (formerly Twitter) on Tuesday, BudgIT described this year’s edition—titled “A Decade of Subnational Fiscal Analysis: Growth, Decline and Middling Performance”—as a milestone marking 10 years of tracking fiscal sustainability and governance transparency across Nigeria’s 36 states.

BudgIT highlighted the key movements in the 2025 rankings.

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“Anambra State rose from second to first position, securing the title of the best-performing state in the federation, while Lagos maintained its second place for the second consecutive year.

“Kwara climbed from fourth to third, Edo entered the top five after consistently ranking within the top ten over the last four editions, and Abia, which had never previously featured in the top 10, now ranks fourth,” the organisation said.

Other notable movements include Akwa Ibom, which surged 17 places from 27th to 10th, and Zamfara, which moved up nine places from 26th to 17th.

At the lower end of the rankings, Imo, Kogi, Jigawa, Benue, and Yobe occupy the bottom positions.

The report retained five key metrics to rank all 35 states: Index A – a state’s ability to meet operating expenses using only Internally Generated Revenue (IGR); Index A1 – year-on-year IGR growth; Index B – capacity to cover all expenses and loan obligations using total revenue without borrowing; Index C – debt sustainability based on foreign debt as % of total debt, total debt as % of revenue, debt service as % of revenue, and personnel cost as % of revenue; and Index D – prioritisation of capital expenditure over recurrent spending.

On revenue performance, BudgIT noted major shifts in IGR.

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“While Rivers (121.26%) and Lagos (118.39%) were the only two states with sufficient IGR to cover their operating expenses in 2024, the absence of Rivers from this year’s analysis has reshaped this dynamic.

“Lagos remains a returning champion with 120.87%, while Enugu now leads with an impressive 146.68% IGR-to-operating expense ratio,” the report said.

Only five states—Abia, Anambra, Kwara, Ogun, and Edo—generated enough IGR to cover at least 50% of their operating expenses, compared with six in 2024. Fourteen states now require more than five times their IGR to cover costs, up from six in 2024, underscoring persistent challenges.

In capital expenditure, Abia led with 77.05% of its total expenditure devoted to capital projects, followed by Anambra, Enugu, Ebonyi, and Taraba, each allocating over 70%.

Overall, 24 states spent at least half of their budgets on capital projects, while Bauchi, Ekiti, Delta, Benue, Oyo, and Ogun devoted more than 60% to personnel and overhead costs.

Total recurrent revenue for all 35 states grew from N6.6 trillion in 2022 to N8.66 trillion in 2023 and N14.4 trillion in 2024—a 66.28% increase, far surpassing the 28.95% rise between 2022 and 2023.

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Lagos accounted for 13.42% (N1.93 trillion) of total revenue in 2024. Gross FAAC transfers increased by 110.74%, reaching N11.38 trillion, with states like Oyo (785.79%), Delta (708.36%), and Anambra (640.98%) recording over 600% growth between 2015 and 2024. Despite these gains, 28 states relied on FAAC for at least 55% of total revenue.

Subnational debt also saw a change. Total debt rose modestly from N9.89 trillion in 2023 to N10.57 trillion in 2024, a 6.8% increase. The top five debtor states—Lagos, Kaduna, Edo, Ogun, and Bauchi—accounted for 50.32% of total debt.

Encouragingly, 31 states reduced domestic debt by at least N10 billion, while foreign debt fell by over $200 million.

On long-term trends, BudgIT said, “Over the past decade, the State of States has evolved into Nigeria’s most authoritative subnational fiscal analysis. This 10th edition not only reflects the story of growth and imbalance but also underscores the urgent need for reform.”

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“Fiscal sustainability requires that states look inward, improving revenue systems, cutting waste, and prioritising infrastructure and human development investments that deliver long-term value,” said Vahyala Kwaga, Group Head of Research.

The report also highlighted uneven social spending. In education, only 66.9% of the budgeted N2.41 trillion was spent. Nine states—Edo, Delta, Katsina, Rivers, Yobe, Ekiti, Bayelsa, Bauchi, and Osun—exceeded 80% of their budgeted allocations, with Edo, Delta, and Katsina surpassing 100%. Average per capita spending remained low at N6,981, with no state exceeding N20,000 per capita and only eight states above N10,000.

In health, the states budgeted N1.32 trillion but expended N816.64 billion, achieving 61.9% implementation. Seven states—Yobe, Gombe, Ekiti, Lagos, Edo, Delta, and Bauchi—spent over 80% of their health budgets, with Yobe leading at 98.2%. Average per capita spending was N3,483, with only a few states exceeding N5,000, highlighting gaps in service delivery relative to education.

A senior lecturer in the Department of Geography, Faculty of Social Sciences, College of Management and Social Sciences, Osun State University, Anthony Kola-Olusanya, has said insecurity challenges persist in Nigeria because political leaders are failing to deliver quality governance.

Kola-Olusanya made this known while speaking as a guest lecturer at a public lecture, one of the activities marking the ongoing 2025 Press Week Ceremony of the Nigeria Union of Journalists, Osun State Council, in Osogbo.

Speaking on the theme: “Governance and Security in Nigeria: Progress, Challenges and Future Directions”, the former Deputy Vice Chancellor of the state-owned university, described governance and security as two sides of a coin, explaining that when governance breaks down, insecurity grows, and the situation hinders the country from reaching its full potential.

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He said, “Governance has faltered in inspiring collective progress, and when people lose faith in their leaders, insecurity shifts from an external issue to an internal crisis. It manifests as the language of frustration.”

The don expressed worry that many governors only think of obtaining monthly allocations and suffer from limited ability to pursue proactive initiatives in tackling insecurity.

Kola-Olusanya, a Professor of Environmental Sustainability at the Osun State University and the Acting Dean, Faculty of Education of the University, concluded, “The powers of guns will not decide the future of this nation, but by the courage of ideas, not by the arrogance of leaders, but by solidarity. Let us therefore act boldly, wisely and together.”

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In his remarks, Kolapo Alimi, the Commissioner for Information and Public Enlightenment in the state, emphasised the need for governments to prioritise security and governance.

The commissioner said security has been politicised, identifying it as one of the undoings of the fight against the menace.

“We have politicised all aspects of our lives, including security, and that is why we are having an incessant security breach. And I know that one day will be one day, that we will come back to our senses to know that insecurity does not know anybody,” he said.

Emir of Kano and former Governor of the Central Bank of Nigeria (CBN), Muhammadu Sanusi II, has warned ministers and presidential aides against turning into praise singers rather than offering President Bola Tinubu honest advice that could help salvage the nation’s ailing economy.

Sanusi gave the charge on Tuesday in Abuja at the Oxford Global Think Tank Leadership Conference and Book Launch, where he joined other notable Nigerians to examine Nigeria’s economic policies and governance challenges.

Speaking on the need for integrity and courage in public service, the Emir lamented that sycophancy has worsened Nigeria’s leadership crisis, as those who speak the truth are often branded enemies of the state.

He decried the growing culture of excessive praise for political leaders during official functions, warning that it stifles honest feedback and undermines good governance.

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He said: “Our leaders listen, but only to those who tell them what they want to hear. Nigeria has too many sycophants in government. Those who speak the truth are seen as enemies of the state.

“You sit in a meeting, and the President is there. The first thing people say is, ‘Mr. President, I want to thank you for your great leadership. God has blessed Nigeria by making you our leader. By the time they finish laying that foundation, it is their advice that the President accepts.

“But when you tell the truth and point out what is wrong, they say you are the enemy. That is why people like Atedo Peterside and I are always seen as enemies of the state, because people don’t like hearing the truth.”

Sanusi urged ministers and presidential aides to restore integrity to public service by speaking truth to power, stressing that blind loyalty and flattery have been major obstacles to Nigeria’s progress.

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“Those who work with the President must understand that it is not in their benefit to turn themselves into praise singers. You disgrace yourself and the office you hold when you do that.”

Turning to the economy, Sanusi commended the Tinubu administration for removing fuel subsidy and unifying exchange rates, describing both as “painful but necessary steps.”

He, however, cautioned that the reforms would fail unless matched with fiscal discipline and transparent spending.

“If you stop paying subsidies but continue borrowing more, it means you’ve filled one hole only to dig another. The real challenge now is the quality of government spending and the management of the revenues saved,” he said.

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The former CBN governor, who served between 2009 and 2014, said Nigeria’s current economic woes were the consequence of years of policy inconsistency and populist politics, recalling that the same politicians who opposed subsidy removal in 2012 are now implementing it.

“In 2012, we warned that the subsidy was unsustainable, but politics took over. “Now the same people who led protests against it have inherited the problem and had no choice but to do the right thing.”

He praised the professionalism of the current economic team, including Finance Minister Wale Edun and CBN Governor Yemi Cardoso, for the steps taken to stabilise inflation and reduce exchange rate volatility, but insisted that government waste must be urgently curtailed.

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“Why do we need 48 ministers? Why do we need long convoys of vehicles and endless travel expenses? We cannot preach sacrifice to the people while living in luxury at the top,” he said.

In his remarks, Peterside, founder of Stanbic IBTC Bank, echoed Sanusi’s call for fiscal responsibility, saying government must demonstrate that savings from subsidy removal are being used to uplift ordinary Nigerians.

“It’s not true that pain automatically brings gain. Gain only follows pain if the government spends wisely, eliminates waste and supports the poor,” he said.