Lagos, Ogun and Kaduna have emerged as Nigeria’s top-performing states in the 2025 Phillips Consulting State Performance Index (pSPI), a comprehensive assessment of governance, fiscal management, public service delivery and citizen satisfaction across the country.
The report ranked Lagos first, Ogun second and Kaduna third among Nigeria’s 36 states and the Federal Capital Territory (FCT), reflecting their relative strengths in revenue generation, economic performance and governance outcomes.
Developed by Phillips Consulting (pcl.), the index combines objective performance indicators with citizen perception data to provide a holistic evaluation of state performance.
According to the report, 70 per cent of each state’s score was derived from objective metrics sourced from audited financial statements, government databases and independent research. The remaining 30 per cent came from a nationwide perception survey conducted over three months, involving 9,498 respondents across the country through digital platforms, SMS, email and in-person engagements.
Lagos secured the top position largely due to its strong fiscal capacity and economic independence.
The state ranked first nationally in internally generated revenue (IGR) per capita, IGR per square kilometre and revenue generated through trade routes. About 69 per cent of Lagos’ total revenue is generated internally, far above the national average of 18 per cent.
The report also ranked Lagos second in internet penetration, reinforcing its status as Nigeria’s commercial and digital hub.
Despite its strengths, Lagos faced challenges in several areas. It ranked 36th in debt per capita, indicating a significant debt burden. The state also recorded low rankings in public hospitals per population (32nd) and functional basic education facilities per population (36th).
Ease of doing business was ranked 29th nationally, while citizen satisfaction scores on roads, healthcare, education, water supply, environmental sanitation and government responsiveness remained relatively low.
Ogun State was ranked second overall and classified as an exceptional performer.
The state placed second in both IGR per capita and the ratio of IGR to total revenue, demonstrating a strong ability to generate income independently of federal allocations. Ogun also ranked second in assets per capita, seventh in capital expenditure per capita and first nationally in internet penetration.
According to the report, more than half of Ogun’s revenue comes from internally generated sources, driven by its industrial base, strategic location and vibrant commercial activities.
However, concerns remain over debt sustainability. Ogun ranked 32nd in debt per capita and 34th in liabilities per capita. The state also recorded low rankings in ease of doing business and citizen satisfaction relating to roads, healthcare, water supply, environmental management and government support for businesses.
Kaduna emerged as the third-best-performing state and received an excellent performer rating.
The report highlighted Kaduna’s strong financial position, ranking it first nationally in assets per capita. The state also placed 10th in IGR-to-total-revenue ratio, supported by a diversified economy spanning agriculture, manufacturing, commerce and services.
Despite its impressive financial indicators, Kaduna faces significant development challenges. The report ranked the state 32nd in ease of finding meaningful employment and noted widespread public dissatisfaction with healthcare, education and security outcomes.
Security concerns, particularly in rural areas, were identified as a major constraint to investment and economic development.
Beyond the top three states, the report highlighted remarkable improvements by several states that have implemented reforms and strengthened fiscal management.
Adamawa recorded the biggest leap, rising from 26th place in 2024 to fourth position in 2025. Niger State moved from 29th to fifth place, while Abia achieved one of the most dramatic turnarounds, climbing from 36th position to 10th.
The report attributed these improvements to stronger governance practices, better fiscal discipline and enhanced public sector performance.
