by Niyi Jacobs
In its 2024 State of States Report, BudgIT highlights a stark contrast in fiscal health across Nigeria’s states, showing that only Lagos and Rivers have the financial independence to cover their operating expenses without federal support.
According to BudgIT, Lagos and Rivers posted impressive internally generated revenue (IGR) ratios, at 118.39% and 121.26% respectively, enabling them to meet expenses independently.
The report, themed “Moving Healthcare Delivery from Suboptimal to Optimal,” analyzes each state’s fiscal performance based on their revenue generation, debt sustainability, and spending priorities. While Lagos and Rivers top the rankings, other states like Jigawa, Akwa Ibom, and Yobe fall behind, relying on federal allocations to fund over 70% of their budgets. BudgIT warns that this dependency on federal funds exposes states to economic risks, especially with fluctuating oil revenues.
The study advocates for reforms to boost internal revenue across states, improve debt management, and enhance transparency to drive sustainable growth, particularly in critical sectors like healthcare, where spending remains insufficient.
