Thirty-five Nigerian states generated a combined ₦17.2 trillion in 2024 but still depend heavily on federal allocations, according to BudgIT’s latest State of States report. Rivers State was excluded due to its failure to submit audited accounts amid a state of emergency.
The report, covering 2015–2025, shows that despite rising revenues, most states remain fiscally dependent on the Federation Account Allocation Committee (FAAC), which rose 110.7% to ₦11.4 trillion in 2024—nearly two-thirds of total revenue. Twenty-nine states relied on FAAC for over half of their income, while 21 depended on it for more than 70%.
Lagos led with ₦1.3 trillion in internally generated revenue (IGR), while Enugu posted the highest IGR growth at 381%. Overall, state expenditure increased 64.7% to ₦15.6 trillion, with ₦2.1 trillion spent on debt servicing. Cumulative debt rose to ₦10.6 trillion, and 24 states now hold over 50% of their debt in foreign currency.
BudgIT’s Global Director, Oluseun Onigbinde, urged states to cut reliance on federal funds and boost investments in local economies, education, healthcare, and infrastructure, warning that inflation and debt are eroding fiscal stability.
