BudgIT report reveals Lagos, Rivers, as Nigeria’s only financially independent states

…calls for revenue reforms

In its 2024 State of States Report, civic-tech organization BudgIT has revealed a stark fiscal disparity across Nigeria’s states, identifying only Lagos and Rivers as financially self-sustaining.

The report highlights that these two states boast impressive internally generated revenue (IGR) ratios—118.39% for Lagos and 121.26% for Rivers—enabling them to fully cover their operating expenses without federal support.

Titled “Moving Healthcare Delivery from Suboptimal to Optimal,” the report analyzes the fiscal performance of Nigeria’s states, focusing on revenue generation, debt sustainability, and spending priorities.

It warns that many states, including Jigawa, Akwa Ibom, and Yobe, are heavily reliant on federal allocations to cover over 70% of their budgets. This dependency, BudgIT cautions, exposes these states to economic risks amid fluctuating oil revenues.

The report urges Nigerian states to adopt reforms aimed at boosting internal revenue, improving debt management, and increasing transparency. These measures, BudgIT suggests, could drive sustainable growth and support critical sectors like healthcare, which remains underfunded in many states.