Calabar, Cross River – In a significant development released on Tuesday, the BudgIT Foundation has unveiled its 2025 State of States Fiscal Performance Ranking, with Anambra State emerging as the top-performing state in Nigeria.

The highly anticipated report, marking its tenth edition and themed "A Decade of Subnational Fiscal Analysis: Growth, Decline and Middling Performance," evaluates the fiscal sustainability and performance of Nigeria's 36 states, excluding Rivers State due to data compilation issues.

Anambra State has surged to the number one spot, overtaking last year’s leader, showcasing remarkable improvements in financial management, revenue generation, and prudent expenditure. Lagos State maintains its consistent second-place position, reinforcing its reputation as a fiscal powerhouse.

Kwara State climbed to third, while newcomers Abia and Edo round out the top five, with Abia making a notable debut in the elite rankings.

The report highlights Anambra’s rise as a testament to effective governance and strategic fiscal policies, while Lagos continues to dominate in Internally Generated Revenue (IGR) performance, achieving a 120.87% IGR-to-operating expense ratio.

Enugu State also stands out with an impressive 146.68% IGR ratio, signaling a growing trend of self-reliance among some states.

The rankings reflect a dynamic shift in fiscal performance across the federation. Cross River State experienced the most significant drop, plummeting from fifth in 2024 to 30th in 2025, a decline attributed to challenges in maintaining its previous fiscal momentum. At the lower end, Imo, Kogi, Jigawa, Benue, and Yobe occupy the bottom five positions, with Yobe replacing Jigawa as the lowest-ranked state.

The absence of Rivers State from the rankings stems from the state’s failure to provide an audited financial statement amid an ongoing state of emergency, a decision that has sparked discussions about transparency and accountability in fiscal reporting.

The 2025 report notes a marked increase in capital expenditure across states, with Abia leading the charge by allocating approximately 77.05% of its total expenditure to capital projects—a significant shift from 2024, when only Rivers State exceeded the 70% threshold. This trend underscores a broader push toward infrastructure development amidst economic challenges such as subsidy removal, rising inflation, and exchange rate unification.

BudgIT’s analysis also points to a slowdown in total debt growth, with states increasingly prioritizing capital over recurrent spending.