Anambra State has emerged as the best-performing state in Nigeria’s 2025 Fiscal Performance Ranking, according to the latest State of States Report released by BudgIT, a civic technology organization promoting fiscal transparency and accountability in governance.
The report, unveiled on Tuesday in Abuja and shared on BudgIT’s official X (formerly Twitter) handle, ranks Lagos, Kwara, Abia, and Edo behind Anambra in the top five positions, highlighting their strong fiscal discipline, improved internally generated revenue (IGR), and prudent management of public funds.
In sharp contrast, Cross River State recorded a significant fall in performance, plunging from fifth place in 2024 to 30th position in the 2025 ranking, while Rivers State, a consistent top-five performer in previous years, was notably excluded from this year’s report following a state of emergency declared earlier in the year, which prevented the publication of its audited financial statements.
Anambra Leads Fiscal Transparency and Accountability
BudgIT’s report described Anambra’s rise to the top as a reflection of “robust fiscal management practices, debt sustainability, and a strong revenue generation framework.”
The state, led by Governor Charles Soludo, was commended for implementing structural reforms that enhanced revenue efficiency, reduced dependence on federal allocations, and improved public expenditure management.
According to the report, Anambra demonstrated one of the best performances in key fiscal indicators, including the ratio of internally generated revenue to total revenue, debt-to-revenue ratio, and capital project execution rate.
“Anambra’s performance reflects a clear commitment to financial discipline, transparency, and innovation in public finance management,” BudgIT noted in the statement.
The state’s prudent approach to borrowing and focus on infrastructure, education, and social investments were also highlighted as contributing factors to its ranking.
Top 10 Performing States
The 2025 edition of the State of States Report placed the following states in the top 10 positions:
- Anambra
- Lagos
- Kwara
- Abia
- Edo
- Ogun
- Kaduna
- Ekiti
- Kano
- Osun
Lagos retained its strong position due to its solid revenue base and fiscal independence, while Kwara and Abia recorded major improvements, climbing into the top five for the first time in three years.
Abia State, under Governor Alex Otti, was singled out for implementing reforms that strengthened transparency in budget processes and improved debt sustainability. Edo State also earned recognition for maintaining a balanced budget approach and investing significantly in digital governance.
Decline and Exclusion
BudgIT’s 2025 report noted that Cross River’s sharp fall was due to rising debt levels, weak revenue generation, and underperformance in capital project execution.
“Cross River’s fiscal position weakened significantly in 2025, as its debt service obligations outpaced revenue growth,” the report stated.
Similarly, Rivers State’s exclusion marked a major deviation from its historical performance. The report explained that due to the state of emergency declared earlier in the year, audited data could not be released, making the state ineligible for assessment.
This exclusion was described by BudgIT as an “unfortunate gap” in a state that had traditionally been among Nigeria’s most fiscally stable subnationals.
A Decade of Subnational Fiscal Analysis
This year’s edition, titled “A Decade of Subnational Fiscal Analysis: Growth, Decline and Middling Performance,” marks 10 years of BudgIT’s State of States project, which assesses how Nigerian states manage public finances, generate revenue, and utilize federal allocations.
The report’s decade-long analysis revealed a mixed trend of fiscal performance across states — with some showing consistent improvement while others continue to rely heavily on federal transfers from the Federation Account Allocation Committee (FAAC).
BudgIT’s Country Director, Gabriel Okeowo, said the report aims to drive conversations around fiscal sustainability, encourage competitive governance, and push states toward financial independence.
“Our goal remains to promote fiscal responsibility and transparency. Over the past decade, we have seen states evolve at different paces — some have embraced reforms, others remain dependent on federal allocations. The 2025 edition offers valuable insight into how subnational governments are adapting to fiscal realities,” Okeowo said.
Key Metrics Used in the Ranking
The State of States Report evaluates fiscal performance using a set of indicators, including:
- Internally Generated Revenue (IGR): Assessing how well states can fund their budgets without depending on FAAC allocations.
- Debt Sustainability: Measuring how much of a state’s income is used to service debts.
- Recurrent and Capital Expenditure Ratio: Evaluating whether spending priorities are focused on development projects rather than overheads.
- Fiscal Transparency: Examining the availability and accessibility of budget and financial reports to the public.
- Revenue Growth and Efficiency: Tracking how states diversify income sources and improve collection efficiency.
These criteria provide an evidence-based framework for assessing how efficiently states manage their finances and the extent to which they can survive financially without heavy reliance on federal support.
Regional Trends
The 2025 report also revealed notable regional patterns in fiscal performance.
The South-East and South-West zones recorded the strongest performances overall, with five of the top ten states emerging from the regions.
Conversely, the North-East and North-West zones continued to lag behind due to security challenges, low industrial activity, and limited fiscal capacity. However, Kano and Kaduna stood out for maintaining steady improvements in revenue generation and budget implementation.
BudgIT’s Call for Fiscal Reforms
BudgIT urged state governments to intensify efforts toward fiscal autonomy by expanding their tax base, reducing wasteful spending, and investing in productive sectors such as agriculture, manufacturing, and technology.
“Sustainable governance depends on how states manage their resources and build resilient economies. The subnational fiscal environment remains fragile, and states must adopt reforms that prioritize accountability and efficiency,” the report emphasized.
The organization also recommended that states publish citizen-friendly budgets, regularly update their financial statements, and engage civil society groups to strengthen public oversight.
Looking Ahead
The State of States ranking has become a reference point for measuring fiscal responsibility and governance performance at the subnational level in Nigeria. Analysts note that Anambra’s emergence as number one in 2025 is a testament to the growing importance of data-driven fiscal management.
Economists also see the trend as a reflection of shifting governance models, where transparency, efficient tax administration, and prudent spending are increasingly determining public confidence and investor interest.
As the nation continues to navigate economic reforms, the BudgIT report underscores the importance of strong fiscal institutions and responsible leadership in driving inclusive growth at the state level.
