Enugu State has emerged as Nigeria’s most fiscally viable state, according to BudgIT’s State of States 2025 report, making it the subnational government most likely to cover its operating expenses exclusively from internally generated revenue (IGR), without reliance on allocations from the Federation Account Allocation Committee (FAAC).
The report ranks Enugu, Lagos, Abia, Anambra, and Kwara as the top five states most capable of surviving independently of FAAC receipts. At the other end, Yobe, Benue, Jigawa, Kogi, and Imo were identified as the least viable states.
BudgIT’s rankings are based on Index A, which measures a state’s ability to meet recurrent expenditure obligations using only IGR. A higher score on this index indicates greater financial autonomy and long-term viability. Enugu scored 0.68, suggesting that 68 percent of its internally generated funds would suffice to cover its operating expenses. Lagos scored 0.83, Abia 1.56, Anambra 1.66, and Kwara 1.73.
This represents a significant improvement for Enugu under Governor Peter Mbah’s administration. In 2024, the state scaled its IGR from N30 billion in May 2023 to N180.05 billion by year-end, thanks to measures such as technology-driven e-payment systems, efforts to plug revenue leakages, and a widened tax net to reduce evasion.
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The report also highlights a shift in the group of states generating enough revenue to cover recurrent expenditure. In 2024, Rivers, Lagos, Ogun, Anambra, and Cross River were the top performers. In 2025, Lagos (120.87%) and Enugu (146.68%) lead, while Rivers is absent from the top ranks. Overall, 28 states continue to rely heavily on federal transfers and other external inflows to fund their operations.
On Index A1, which tracks IGR growth, Enugu again leads, followed by Bayelsa, Abia, Osun, and Kano. Conversely, Kebbi and Yobe recorded negative growth, while Ebonyi, Bauchi, and Benue posted weak performances. BudgIT noted that although some gains may reflect increased federation transfers, the overall improvement compared with 2023 is encouraging.
The report underscores the importance of robust revenue mobilization and expenditure management, highlighting Enugu as a model for fiscal discipline and financial sustainability in Nigeria’s subnational governance landscape.
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