Anambra’s Fiscal Illusion: Why Nigeria’s ‘Best-Managed’ State Struggles to Deliver Real Impact
Story: written by Zara November 4,2025
When the BudgIT State of States Report 2025 crowned Anambra State as Nigeria’s top performer in fiscal management, it seemed like a triumph for Governor Charles Soludo’s administration — a testament to discipline and foresight. Climbing from second place in 2024 to first in 2025, Anambra earned praise for allocating a record 75.32 percent of total spending to capital projects — the highest in the nation.
Yet, beneath the glowing numbers lies a troubling paradox: a fiscally impressive state that still struggles to deliver real progress for its citizens.
Ambition Without Execution
Anambra’s 2024 budget revealed grand intentions but weak implementation. Of the ₦218.26 billion earmarked for capital projects, spending fell short across essential sectors.
Education — the core of human development — received just 34.69 percent of its allocation. Health fared slightly better at 62.5 percent, while social welfare and land development recorded an abysmal 3.1 percent and 17.4 percent, respectively.
Despite strong infrastructure rhetoric, these figures expose a planning-heavy, delivery-light system. “Ordinary citizens judge success by tangible change,” one analyst said. “If schools decay and roads remain impassable, fiscal awards mean little.”
Debt Trap in Disguise
The state’s impressive fiscal profile is undermined by its rising foreign debt exposure. Of Anambra’s ₦187.88 billion total debt, a staggering 84.73 percent is foreign-denominated — a risky position amid the naira’s continued decline.
From 2015 to 2024, Anambra’s debt surged by over 1,100 percent, with repayment burdens magnified by currency devaluation. Economist Patrick Chimezie links this to Soludo’s ambitious infrastructure agenda but warns:
“Borrowing isn’t bad — but what’s dangerous is borrowing without a clear repayment strategy or visible returns.”
Overdependence on Abuja
Despite its reputation as Nigeria’s commercial hub, Anambra remains heavily dependent on federal allocations. In 2024, FAAC funds accounted for 87.79 percent of its recurrent revenue — one of the highest ratios among top-ranking states.
Even with an 18.7 percent growth in Internally Generated Revenue (IGR), the state’s tax system remains inefficient and burdensome. Traders complain of multiple levies, yet transparency in collection remains unclear.
“It’s ironic,” Chimezie said. “The government collects aggressively but still depends on Abuja to stay afloat.”
Fiscal Excellence or Paper Success?
Experts argue that Anambra’s BudgIT ranking rewards statistical efficiency, not developmental impact.
According to Dr. Kingsley Enwelim Nwanze, DG of CELCE-Africa, “The paradox lies in the disconnect between impressive fiscal metrics and poor social outcomes. High capital budgets mean little if they don’t translate to better schools, jobs, or hospitals.”
He emphasized that sustainable fiscal success must prioritize inclusive development, transparent spending, and measurable welfare improvements.
A Triumph That Needs Caution
While Anambra’s fiscal reforms deserve recognition, their real-world impact remains limited. With record capital allocations but poor execution, mounting debt, and a shaky revenue base, the state’s “fiscal glory” risks becoming a statistical mirage.
For many residents, life tells a different story — pothole-riddled roads, underfunded schools, and poorly equipped hospitals persist despite impressive figures on paper.
As Anambra celebrates its crown as Nigeria’s fiscal model, the challenge is clear: Can Soludo’s government turn budgetary brilliance into tangible human development? Or will Anambra remain the nation’s most fiscally sound illusion?
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