Enugu State recorded a 125.91 per cent enhance in internally generated income (IGR) to N407.76 billion in 2025 from N180.5 billion within the previous yr, rising because the second-highest revenue-performing state in Nigeria, at the same time as Lagos retained its place because the best-performing state within the in response to the 2026 State of States launched by BudgIT.
The important enhance in Enugu’s income positioned it among the many states with the strongest income progress in the course of the yr, alongside Oyo and Gombe, which recorded will increase of 112.79 per cent and 111.28 per cent, respectively.
However, BudgIT within the report titled “From Allocation to Impact: Rethinking State Spending Priorities”, famous that the composition of Enugu’s income progress raises questions on its sustainability, as non-tax receipts accounted for 90.79 per cent of absolutely the enhance within the state’s IGR.
Lagos maintained its dominance in income technology, recording N1.71 trillion in IGR, representing a 35.67 per cent enhance from N1.26 trillion in 2024. The state additionally secured the primary place nationally within the 2026 State of States fiscal efficiency rating, supported by its diversified income base.
The report assessed the 2025 fiscal efficiency of 35 states throughout the nation, excluding Rivers State due to the non-publication of its audited monetary statements and funds implementation experiences.
Evaluates states’ income mobilisation capability, fiscal viability, debt sustainability and expenditure priorities, with elevated emphasis on the developmental influence of public spending. According to the report, the evaluation methodology was revised to maneuver past standard measures of income progress and expenditure volumes to look at how successfully public sources are deployed in direction of bettering residents’ welfare.
“Stronger revenue mobilisation does not automatically translate into better public service delivery,” BudgIT said, stressing that the standard, composition and execution of presidency expenditure stay important measures of fiscal efficiency.
Beyond Lagos and Enugu, Oyo and Gombe recorded IGR progress of 112.79 per cent and 111.28 per cent, respectively, whereas Abia and Akwa Ibom recorded will increase of 64.48 per cent and 45.11 per cent.
Kano, the main IGR-generating state within the North-West, generated N102.6 billion, representing a 35.78 per cent enhance over the previous yr. Despite the enhancements, the report recognized continued dependence on Federation Account Allocation Committee (FAAC) transfers as a significant weak spot in state funds.
FAAC allocations accounted for roughly 90 per cent of Akwa Ibom’s recurrent income, 86.47 per cent in Anambra, 82.90 per cent in Abia and 79.28 per cent in Kano, highlighting the restricted progress made by a number of states in direction of fiscal independence.
On expenditure, Lagos recorded whole spending of N3.16 trillion, representing a 33.24 per cent enhance, whereas Oyo and Enugu recorded will increase of 118.71 per cent and 84.80 per cent to N978.64 billion and N880.57 billion, respectively.
The report, nonetheless, cautioned that increasing expenditure doesn’t essentially translate into improved growth outcomes, notably the place rising working prices and debt obligations constrain sources out there for important sectors.
Commenting on the findings, BudgIT’s Head of Research and Policy Advisory, Engr. Adejoke Akinbode, stated the growth in public income presents a possibility for states to speed up growth however should be accompanied by accountable spending.
“The ultimate test of fiscal responsibility is whether public resources are translated into better healthcare, improved education, productive infrastructure and other essential services that directly improve citizens’ lives,” she stated.
BudgIT urged state governments to strengthen home income establishments, enhance funds credibility, prioritise high-impact growth programmes and be certain that borrowing is channelled in direction of investments able to producing sustainable financial and social returns.
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