By Babajide Komolafe, Economy Editor
Nigeria’s 2025 State of States Fiscal Performance Ranking by BudgIT has unveiled a new era of fiscal leadership — one dominated by reform-minded states from the South East and North Central regions. Anambra, Enugu, and Abia led a remarkable Southeastern charge, while Kwara made history by breaking into the top three nationwide for the first time.
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In what analysts describe as the strongest showing yet from subnational governments outside the traditional oil and commercial hubs, BudgIT’s latest report highlights growing fiscal autonomy, improved Internally Generated Revenue (IGR), and smarter investment in capital projects as the major themes shaping Nigeria’s emerging fiscal order.
Anambra: ‘Light of the Nation’ Takes the Crown
For the first time, Anambra State emerged as Nigeria’s best-performing state in fiscal management, clinching the top spot after climbing from second place in 2024. The “Light of the Nation” impressed with strong revenue growth and an aggressive focus on infrastructure and development.
The state’s IGR rose by 18.71% to N42.97 billion in 2024, while capital expenditure dominated spending — N218.26 billion, or 75.32% of total expenditure — leaving just N71.5 billion for recurrent costs.
However, BudgIT cautioned that execution remains a weak link: education spending stood at just 34.69%, health at 62.5%, and social welfare at 3.1%. Anambra’s debt sustainability ranking fell to 21st, with total debt at N187.88 billion — 85% of it foreign, exposing the state to currency risks.
BudgIT urged the government to diversify revenue sources, strengthen tax systems, and improve budget delivery to maintain its position. Still, the report described Anambra’s achievement as a “powerful statement of progress from the South East.”
Enugu: Double Triumph in Revenue and Autonomy
Enugu State scored a historic double win, ranking first in IGR growth and operating autonomy nationwide. The Coal City recorded a stunning 381.44% surge in IGR, the highest in Nigeria, and became one of only two states — alongside Lagos — capable of fully funding operations from internal revenue.
Non-tax earnings were the main driver, with the Enugu Housing Corporation alone contributing over N78 billion from property sales. Licenses and rent revenues grew by more than 1,000%, while overall non-tax income skyrocketed by 641%.
Despite this fiscal triumph, the state’s debt burden looms large, with total debt at N252.94 billion, making Enugu the most indebted in the South East and ninth nationally. Contractor arrears and pension liabilities exceed N86 billion.
BudgIT called on the state to consolidate its gains through digital tax systems, formalising the informal economy, and reducing dependence on federal transfers.
Abia: No. 1 in Capital Project Prioritisation
Abia State delivered what BudgIT described as one of the most “transformational fiscal stories” in 2025. The God’s Own State became Nigeria’s top state in capital project prioritisation, dedicating an unmatched 77% of total expenditure to capital projects in 2024 — the highest ratio in the country.
This focus on development lifted Abia to 4th overall, marking its first-ever entry into the nation’s Top 5 fiscal performers. The state’s IGR surged by 129.37%, jumping from N17.99 billion in 2023 to N41.26 billion in 2024. Non-tax revenue grew by 261%, while tax income rose by 57%.
BudgIT credited Abia’s rise to fiscal discipline, efficient resource use, and prudent borrowing, noting a three-place improvement in debt sustainability. To sustain progress, the report urged the state to expand industrial capacity, boost entrepreneurship, and strengthen local revenue systems.
Kwara: ‘State of Harmony’ Breaks into Top Three
For the first time, Kwara State joined Nigeria’s Top 3 fiscal performers, earning national recognition for disciplined financial management and development-focused spending. The state’s IGR grew by 36.48% to N66.15 billion, while capital expenditure jumped 121.88% to N212.08 billion — about 65% of its total budget.
Kwara also recorded a sharp improvement in fiscal health, reducing its debt-to-revenue ratio from 83.28% to 41.25%, reflecting stronger debt management and sustainability.
BudgIT praised Kwara’s reforms as “a model for transparent and responsible fiscal governance,” noting that the state’s consistent climb from 20th position in 2015 to 3rd in 2025 underscores “a decade of disciplined evolution.”
A New Fiscal Map for Nigeria
BudgIT’s 2025 report paints a new fiscal map, with states once considered economically mid-tier now driving innovation, discipline, and self-reliance. The Southeast bloc — Anambra, Enugu, and Abia — dominated in fiscal creativity and capital focus, while Kwara’s North Central showing reflects the spread of reform momentum across regions.
The shift signals the rise of a new class of reform-driven subnational leaders, using fiscal prudence, technology, and homegrown strategies to build sustainable economies.
As BudgIT put it, “These states are proving that Nigeria’s economic future may be written not in Abuja, but in the hands of governors who treat public finance as an instrument of transformation.”
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