Lagos Leads Nigeria in Fiscal Management for 2026; Enugu Sees Major Revenue Growth

Lagos State has been recognized as Nigeria’s top state for fiscal management in 2026. This finding comes from the latest report by BudgIT, which evaluates how well states manage their finances. The report also highlights that Enugu experienced a remarkable increase in its internally generated revenue (IGR), growing by nearly 126%.

The report, titled “From Allocation to Impact: Rethinking State Spending Priorities,” reviewed the fiscal performance of 35 states in 2025. It looked at how much revenue each state generates, how efficiently they spend their money, and how well they manage their debts. Rivers State was not included in the report because it had not yet released its financial statements.

Lagos topped the rankings with an IGR of about N1.71 trillion, which is a 36% increase from the previous year. Enugu followed closely, with its revenue jumping from N180.5 billion to N407.76 billion. Other states like Oyo and Gombe also saw significant revenue increases, while some states struggled with low revenue generation.

Despite the impressive revenue growth, BudgIT warned that simply having more money does not guarantee better public services. The quality of how money is spent is crucial for actual improvements in citizens’ lives. For example, while Lagos increased its total spending to N3.16 trillion, there are concerns that fast-growing expenses could lead to financial issues if they outpace revenue growth.

In terms of debt, Lagos had a total debt of about N2.90 trillion at the end of 2025. Meanwhile, some states have high debt levels relative to their revenue, raising concerns about their financial health. BudgIT emphasized the need for states to improve their revenue collection methods and focus on spending that benefits the public.

BudgIT’s report suggests that states should prioritize investments in areas like healthcare, education, and infrastructure to ensure that increased revenue leads to real improvements for their citizens.