BudgIT Ranks States on Index A1: Enugu, Bayelsa, Abia leads as financial autonomy gains traction
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In its latest 2025 State of States report, BudgIT Nigeria has released a ranking of the 36 states and the Federal Capital Territory (FCT) based on the Index A1, a metric assessing states’ ability to grow their Internally Generated Revenue (IGR) year-on-year while reducing reliance on federal allocations from the Federation Account Allocation Committee (FAAC).
The findings, unveiled on Friday, via a post on X (@BudgITng) , spotlight a stark divide between fiscal frontrunners and laggards, with significant implications for Nigeria’s economic landscape.
Leading the pack is Enugu State, scoring an impressive 3.81 on the Index A1, followed by Bayelsa (1.74), Abia (1.29), Osun (0.98), and Kano (0.86). These states have demonstrated consistent IGR growth and a progressive shift away from over-dependence on federal transfers, positioning them as models of fiscal self-reliance.
BudgIT notes that their success reflects strategic revenue diversification, including enhanced tax collection and local economic initiatives.
In contrast, the bottom five states—Benue (-0.03), Bauchi (0.07), Ebonyi (0.09), Yobe (0.01), and Kebbi (-0.03)—recorded low or negative IGR growth, leaving them heavily reliant on FAAC disbursements to fund their budgets.
This dependence, BudgIT warns, underscores a persistent vulnerability to macroeconomic shocks and highlights the need for urgent fiscal reforms.
The middle tier, comprising 25 states with Index A1 scores ranging from 0.12 to 0.54, shows a mixed bag of progress. States like Jigawa (0.63), Akwa Ibom (0.59), and Nasarawa (0.54) are making strides, though not enough to break free from federal crutches.
The report attributes their middling performance to inconsistent revenue strategies and external economic pressures.
BudgIT’s analysis suggests that states ranking higher on Index A1 have leveraged innovative policies, such as digital tax systems and public-private partnerships to boost IGR, while lower-ranked states struggle with stagnant or declining revenue bases.
The organization calls for targeted interventions to help laggards, emphasizing that fiscal autonomy is critical for sustainable development amid Nigeria’s projected N2.43 trillion IGR growth in 2023.
The full ranking, detailed in the 2025 State of States report available on www.budgit.org, has sparked online debates, as citizens in states like Enugu and Bayelsa celebrate their leadership, and those in Benue and Kebbi demanding accountability from their governors.
