Enugu State has been named Nigeria’s most fiscally sustainable subnational government, topping BudgIT’s 2025 State of States ranking. According to the report, Enugu is the state most capable of funding its operating expenses entirely from Internally Generated Revenue (IGR) — without reliance on allocations from the Federation Account Allocation Committee (FAAC).
Enugu leads the fiscal viability index ahead of Lagos, Abia, Anambra, and Kwara, which round out the top five. At the bottom of the ranking are Yobe, Benue, Jigawa, Kogi, and Imo, identified as the least financially independent states.
BudgIT’s assessment, based on Index A, measures states’ ability to meet recurrent expenditure obligations using only IGR. The higher a state’s score, the greater its fiscal autonomy and long-term viability.
“States that perform strongly on Index A have comparatively limited dependence on FAAC allocations and thus possess greater viability if they were to theoretically exist as independent entities,” the report explained.
Enugu scored 0.68, meaning that 68% of its IGR could cover its operating expenses. The other top performers were Lagos (0.83), Abia (1.56), Anambra (1.66), and Kwara (1.73). The 2025 ranking marks a major leap for Enugu, which did not make the top five in 2024. The improvement reflects the success of Governor Peter Mbah’s administration, which has aggressively reformed the state’s revenue system.
Since taking office in May 2023, Mbah has grown Enugu’s IGR from ₦30 billion to ₦37 billion by the end of that year, and further to ₦180.05 billion in 2024 through digital payment systems, plugging leakages, and expanding the tax base to curb evasion.
While Enugu and Lagos top the 2025 IGR ranking, the number of states generating enough revenue to cover their expenses has declined from 2024. Last year, Rivers and Lagos exceeded 100% of their recurrent expenditure through IGR alone. In 2025, only Lagos (120.87%) and Enugu (146.68%) achieved that feat, with Enugu taking the lead. The report also highlights that 28 states still rely heavily on federal transfers and other external inflows to finance their operations.
On Index A1, which tracks IGR growth, Enugu again ranked first, followed by Bayelsa, Abia, Osun, and Kano — the states with the strongest revenue growth in 2024. In contrast, Kebbi and Yobe posted negative growth, while Ebonyi, Bauchi, and Benue recorded weak results.
BudgIT noted that while overall IGR performance has improved compared to 2023 — when seven states reported declines — sustained reforms are needed to ensure long-term financial independence across Nigeria’s states.
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