Lagos tops 2025 State Performance Index, leads in governance, revenue generation
By Adeola Ogunrinde
Lagos State has emerged as Nigeria’s best-performing sub-national government in the 2025 State Performance Index (pSPI), ranking first among the 36 states and the Federal Capital Territory across key governance, economic and development indicators.
The ranking, released by Phillips Consulting Limited, placed Lagos at the top of the national assessment, citing the state’s strong performance in revenue generation, financial independence, digital access and overall governance effectiveness.
According to the report, Lagos retained its position as the country’s leading revenue-generating state, ranking first in internally generated revenue (IGR) per capita, per square kilometre and per trade route. The state was also ranked second nationwide in internet penetration and digital access.
The report further highlighted Lagos’ high level of financial independence, noting that 69 per cent of the state’s revenue is generated internally, far above the national average of 18 per cent. This, it said, has significantly reduced the state’s dependence on federal allocations.
Phillips Consulting described the State Performance Index as a tool for measuring governance effectiveness and identifying areas requiring policy intervention. It noted that the 2025 edition adopted a more data-driven methodology, placing greater emphasis on measurable outcomes and tangible impacts rather than public perception.
The report also described Lagos as the economic backbone of Nigeria, pointing out that the state’s economy is larger than those of several African countries and is driven by a robust mix of commerce, finance, technology and international trade.
In the overall ranking, Lagos was followed by Ogun State in second place and Kaduna State in third. Adamawa State and Niger State completed the top five, while Nasarawa, Gombe, Jigawa, Plateau and Abia occupied the sixth to tenth positions respectively.
Reacting to the ranking, Babajide Sanwo-Olu said the recognition validates the administration’s efforts to improve the lives of residents through strategic investments and reforms. He added that the latest assessment would serve as motivation for the government to work harder and deliver even better results, noting that Lagos had also recently received international recognition for its vibrant nightlife and growing global profile.
