Enugu State recorded the highest aggregate revenue growth among Nigerian states in the post-subsidy period, with its actual revenue rising from N102.68 billion in 2022 to N665.85 billion in 2025.
The increase represents a nominal compound annual growth rate (CAGR) of 86.48 per cent, according to a report by BudgIT titled, “Nigeria’s Reforms: What Has Changed Across Nigeria’s States? An Analysis of State Finances in the Post-Subsidy Years.”
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Abia State followed with a revenue CAGR of 66.05 per cent, while Niger, Taraba and Bauchi recorded growth rates of 60.47 per cent, 54.33 per cent and 53.87 per cent, respectively.
The figures show that the increase in resources available to state governments following the removal of petrol subsidy and subsequent fiscal changes was not confined to the country’s largest economies.
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According to the report, aggregate state revenue grew at a CAGR of 47.57 per cent during the period under review.
Edo recorded a 53.28 per cent CAGR, followed by Imo at 52.89 per cent, Katsina at 52.33 per cent, Anambra at 52.20 per cent and Osun at 52.07 per cent.
Kogi, Plateau, Oyo, Cross River, Ekiti and Gombe also recorded annual revenue growth rates of about 50 per cent or more.
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BudgIT attributed much of the increase to higher Federation Account Allocation Committee (FAAC) disbursements, while noting that improvements in internally generated revenue mobilisation also contributed in some states.
Lagos still leads in actual revenue
Despite recording a slower proportional growth rate, Lagos remained the state with the largest actual revenue during the period.
The state’s revenue increased from N889.45 billion in 2022 to N2.63 trillion in 2025.
Its 43.49 per cent CAGR, however, placed it 22nd among the reporting states, pointing to the difference between the size of a state’s revenue base and its rate of growth.
Delta State similarly recorded substantial growth in actual revenue, rising from N540.84 billion in 2022 to N1.45 trillion in 2025. But its 38.90 per cent CAGR was below the aggregate growth rate recorded across the states covered by the study.
The report said the figures demonstrate that states with smaller revenue bases were, in several cases, expanding their fiscal capacity at a faster proportional rate than states with traditionally larger economies.
At the bottom of the revenue-growth ranking was Nasarawa, which recorded a CAGR of 27.94 per cent.
Kebbi followed with 32.59 per cent, Zamfara with 32.69 per cent, Ogun with 32.71 per cent and Kaduna with 33.55 per cent.
Akwa Ibom, Rivers excluded
The analysis covered 34 states because Akwa Ibom and Rivers were excluded from the comparison due to the absence of complete budget implementation reports.
BudgIT said it relied on actual Q1-Q4 budget implementation data to enable comparison of fiscal performance and spending trends between 2022 and 2025.
The exclusion means that the two oil-producing states, despite their significant revenues, could not be assessed alongside the other states on the basis of comparable implementation data.
PREMIUM TIMES reported that in 38 months of Governor Umo Eno’s administration in Akwa Ibom State, he had N2.934 trillion in revenue.
The omission also points to the importance of regular publication of complete budget implementation reports in assessing how state governments manage public resources.
Revenue gains do not automatically translate to development
BudgIT said the increase in state revenues should not be viewed solely through the size of the funds received, but also through how governments deploy those resources.
The analysis examined aggregate revenue and expenditure growth, personnel costs, overhead expenditure and capital spending, as well as spending on critical sectors including education, health, infrastructure and administration.
It said the differences in revenue performance across states reflected variations in economic structures, revenue administration capacity and the ability of governments to mobilise internally generated revenue.
Although statutory allocations accounted for a larger proportion of the overall increase in state revenues, the report stressed that strengthening domestic revenue mobilisation remains necessary for long-term fiscal sustainability and reducing dependence on federal transfers.
READ ALSO: Akwa Ibom, Rivers excluded from post-subsidy fiscal assessment because of missing data
The report also cautioned that increased public revenue must be matched by transparency and accountability if citizens are to benefit from the fiscal gains generated by the reforms.
“Transparency, accountability, and citizen participation remain essential to ensuring that increased revenues produce tangible benefits for citizens,” BudgIT said.
It identified timely publication of budget implementation reports, open procurement processes and stronger public oversight as key measures for ensuring that increased government resources translate into improved public services.
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