The Only 2 States In Nigeria That Generate Revenue To Cover Operating Costs

Lagos and Kaduna States has been named the only 2 States in Nigeria that generate revenue to cover operating costs.

Vanguardngr reports that Lagos and Kaduna States have emerged as the only two among Nigeria’s 36 states to generate more revenue than required to cover their operating costs, according to the 2023 edition of BudgIT’s annual ‘States of States’ report.

The report, titled ‘Subnational Healthcare Delivery for Improved Economic Development,’ was released on Tuesday.

According to Nancy Odimegwu, Communications Associate of BudgIT, “This year’s report shows that Lagos and Kaduna have demonstrated an impressive fiscal performance, generating more revenue than needed to manage their operating costs.

“This is a commendable feat given the economic challenges facing most states in the country.”

The report, which is BudgIT’s flagship analysis, evaluates and ranks the fiscal performance of all 36 states, from the most sustainable to the least sustainable.

It also highlights the state of healthcare delivery at the state level, emphasizing its importance in promoting economic development.

In a surprising turn, Anambra state made its debut in this year’s fiscal performance table, referred to as “Index A,” while Rivers State retained its number one position for the fourth consecutive time.

Unfortunately, Cross River fell from the top five, now standing in the ninth position.
However, it wasn’t all doom and gloom. Adamawa State has shown a significant improvement, climbing ten places to the 23rd position from its 33rd ranking in the previous year.

“On a positive note, Adamawa State has made remarkable strides in fiscal performance, moving up ten places in just one year.

“This is a testament to the state’s dedication to improving its economic standing,” Odimegwu added.

On the other hand, Kebbi State experienced a significant decline, dropping 13 places down to the 28th position on the fiscal performance ranking.

Furthermore, states like Taraba, Katsina, Bayelsa, and Zamfara required more than seven times their Internally Generated Revenue (IGR) to manage their operating costs, highlighting the financial challenges these states face.

BudgIT hopes the report will be a valuable resource for engagement and advocacy efforts aimed at improving fiscal performance and healthcare delivery at the state level.

“We believe this report is a crucial tool for ongoing efforts to enhance economic development and healthcare delivery in our states,” concluded Odimegwu.


Eyo Nse is a creative writer, blogger and a software engineer. He is a simple individual who loves to see others succeed in life. Mr Wisdytech as he is popularly known - started blogging in the early 2000's.