BudgIT, a civic non-profit organisation, has disclosed that 28 states in Nigeria relied on the Federation Account Allocation Committee (FAAC) for at least 55 percent of their total revenue in 2024.
This is according to BudgIT’s 2025 States of States report released on Tuesday. The report noted that reliance on federal allocations remains high despite a 110.74 percent increase in states’ FAAC share from N5.4 trillion in 2023 to N11.38 trillion in 2024.
“In the 2024 fiscal year, 28 states relied on FAAC receipts for at least 55% of their total revenue, while 21 states depended on FAAC receipts for at least 70% of their total revenue. This means that despite states receiving more (in volume of Naira) from federation transfers, more states are relying on funds from the centre than before,” the report noted.
The report further noted that internally generated revenue (IGR) remains within the control of the states and displays considerable variability, with Lagos averaging N541.35 billion, Ogun N92.76 billion, Delta N74.45 billion, and Kaduna N44.82 billion over the 10-year period.
“By contrast, the states with the lowest averages — Adamawa (N9.92 billion), Gombe (N9.54 billion), Taraba (N7.83 billion), Kebbi (N7.48 billion), and Yobe (N6.67 billion) — barely matched Kaduna’s average,” the organisation said.
“In terms of immediate growth between 2023 and 2024, Enugu (381.44%), Bayelsa (173.69%), Abia (129.37%), Osun (98.37%), and Kano (85.90%) led the pack.
“Moreover, unlike 2023 — when seven states recorded negative IGR growth — only two states experienced declines in 2024, reflecting overall improvement.”
On sustainability, the report stated that this year’s report evaluated and ranked the fiscal performance of 35 Nigerian states—from most to least sustainable—offering insights into revenue generation, expenditure patterns, debt sustainability, and sectoral investments in education and health while bemoaning the absence of Rivers State on the list.
“From 2015 till date, this is the first time the report will be short one state. On the 18th of March 2025, the President of the Federal Republic of Nigeria declared a State of Emergency in Rivers State (this was ratified by the National Assembly about 2 days lateron the 20th of March, 2025).
“The implications of this are non-trivial, as the absence of Rivers from the ranking means its usual position in the top 5 states would be taken by another state. It also means that conclusions on broad subnational performance (i.e., arithmetic means relating to general IGR performance) will be somewhat incomplete as Rivers had an outsized influence on general performance.
“As a result, the 2025 report introduces new entrants to the top five, with Anambra, Lagos, Kwara, Abia, and Edo ranked in descending order.
“Anambra State rose from second to first position, securing the title of the best-performing state in the federation, while Lagos maintained its second place for the second consecutive year.
“Kwara climbed from fourth to third, Edo entered the top five after consistently ranking within the top ten over the last four editions, and Abia, which had never previously featured in the top ten, now ranks fourth.
“Other notable movements include Akwa Ibom, which surged 17 places from 27th to 10th, and Zamfara, which moved up nine places from 26th to 17th.
“At the lower end of the rankings, Imo, Kogi, Jigawa, Benue, and Yobe occupy the bottom positions, with Cross River experiencing the steepest decline, falling from fifth in 2024 to 30th in 2025,” it explained.
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