Enugu Ranked Nigeria’s Most Financially Self-Sufficient State — BudgiT Report
Story : Written by Uzuh Rita October 29,2025
Enugu State has been named Nigeria’s most financially self-sufficient subnational government, according to BudgiT’s 2025 State of States report. The latest ranking positions Enugu as the state most capable of financing its day-to-day operations solely through internally generated revenue (IGR).
The report lists Enugu, Lagos, Abia, Anambra, and Kwara as the top five states with the strongest fiscal independence from allocations from the Federation Account Allocation Committee (FAAC). On the opposite end, Yobe, Benue, Jigawa, Kogi, and Imo were identified as the least financially resilient.
BudgiT explained that these findings are drawn from Index A, which evaluates how efficiently states can settle their recurrent expenditures using only IGR. The measure reflects financial autonomy and long-term economic health.
“States that rank higher on Index A show reduced reliance on FAAC and greater sustainability if required to operate independently,” the report noted.
Enugu recorded a score of 0.68, indicating that 68% of its IGR could cover its operating costs. Lagos followed with 0.83, while Abia scored 1.56, Anambra 1.66, and Kwara 1.73, completing the top tier performers.
This marks a significant improvement for Enugu compared to the 2024 ranking led by Rivers, Lagos, Ogun, Anambra, and Cross River. The latest placement suggests strong revenue mobilisation and better spending efficiency by the Enugu State government.
IGR Strength: Enugu Takes Lead as Fewer States Hit 50% Benchmark
The report also shows a decline in the number of states capable of covering at least half of their operating expenses with IGR. In 2024, Rivers and Lagos exceeded 100% IGR coverage, enabling them to run without depending on FAAC for recurrent costs.
However, Rivers was excluded from this year’s analysis. For 2025, only Enugu (146.68%) and Lagos (120.87%) exceeded the 100% mark—placing Enugu at the top. Meanwhile, only five states — Abia, Anambra, Kwara, Ogun, and Edo — managed to surpass the 50% viability threshold.
This means that 28 states still rely heavily on federal transfers and external revenue sources to keep their operations afloat.
IGR Growth: More States Improve, But Challenges Remain
Under Index A1, which measures growth in revenue generation, Enugu again leads, followed by Bayelsa, Abia, Osun, and Kano—showing significant improvement in their IGR performance during 2024.
At the lower end, Kebbi and Yobe posted negative growth rates, while Ebonyi, Bauchi, and Benue showed weak revenue gains. BudgiT noted an improvement from 2023 when seven states experienced negative revenue growth.
“Though early to conclude a trend, the better performance may partly be tied to higher inflows from the federation. However, the improvement is notable,” the report added.
In the previous assessment, Zamfara, Ekiti, Niger, Katsina, and Plateau dominated the IGR growth chart — a further sign that fiscal performance among states shifts sharply with political leadership and policy direction.
Despite gradual improvement, the 2025 analysis underscores persistent disparities in fiscal sustainability. While a handful of states are strengthening their financial autonomy, most still grapple with structural weaknesses — including overwhelming reliance on FAAC and rising governance costs.
BudgiT emphasized that achieving true economic stability will require deeper fiscal reforms, smarter spending, and aggressive revenue diversification across Nigerian states.
