By Jungle-Journalist.Com
Enugu State has officially emerged as Nigeria’s most financially independent and fiscally viable state, according to BudgIT’s 2025 State of States Report, which ranks all 36 states by their ability to survive without federal allocations.
The report highlights Enugu’s dramatic rise to the top, showing that the state can now fund its operating expenses solely from Internally Generated Revenue (IGR) — a remarkable turnaround achieved under the administration of Governor Peter Mbah.
According to BudgIT, Enugu, Lagos, Abia, Anambra, and Kwara are Nigeria’s top five most financially resilient states, while Yobe, Benue, Jigawa, Kogi, and Imo occupy the bottom of the ranking.
A Quantum Leap in Fiscal Management
BudgIT’s Index A, which measures states’ ability to meet recurrent expenditures using only IGR, placed Enugu State at the very top with a score of 0.68. Lagos followed closely with 0.83, while Abia, Anambra, and Kwara posted 1.56, 1.66, and 1.73 respectively.
In comparison, Rivers, Lagos, Ogun, Anambra, and Cross River topped the 2024 rankings — meaning Enugu’s 2025 performance represents a massive leap in fiscal discipline and economic efficiency.
Governor Peter Mbah’s reforms are widely credited for this success. He reportedly inherited an IGR of ₦30 billion in May 2023, which rose to ₦37 billion by the year’s end — and then skyrocketed to ₦180.05 billion in 2024.
This growth was driven by digital innovations such as e-payment systems, anti-leakage technologies, and an expanded tax base that curbed evasion and streamlined revenue collection across Enugu State.
Enugu and Lagos Lead as Most Self-Sustaining States
BudgIT’s report also shows that, in 2025, only Enugu (146.68%) and Lagos (120.87%) generated more than enough IGR to cover their recurrent expenditure.
In 2024, that elite group included Rivers and Lagos, meaning Enugu’s advancement signals a shift in Nigeria’s fiscal landscape — with the Southeast state now standing taller than the nation’s commercial capital in terms of revenue efficiency and sustainability.
However, the report notes that 28 states still rely heavily on FAAC transfers to survive, underscoring the country’s deep structural imbalance in fiscal management.
Enugu Leads in IGR Growth Rate
On Index A1, which measures the rate of IGR growth, Enugu again claimed the top spot, followed by Bayelsa, Abia, Osun, and Kano. These states showed the strongest momentum in boosting internal revenues during the 2024 fiscal year.
At the lower end, Kebbi and Yobe recorded negative IGR growth, while Ebonyi, Bauchi, and Benue showed weak improvement.
BudgIT cautioned that while the surge in numbers is impressive, some of the increase may reflect improved federal inflows rather than purely internal expansion.
“While it may be too early to celebrate, as the uptick could partly reflect increased inflows from federation transfers, it is a much better performance than the previous year,” BudgIT stated.
Fiscal Reform as the New Frontier
With this achievement, Enugu State stands out as a model for fiscal innovation, administrative efficiency, and economic independence, setting a new benchmark for subnational governance in Nigeria.
Governor Mbah’s strategy of digital transformation and fiscal transparency appears to have paid off — positioning Enugu as the most financially self-sufficient state in the federation.
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