The 2026 State of States Report, the 11th edition of BudgIT's flagship publication, assesses the fiscal performance of 35 Nigerian states in 2025. It examines how states generated revenue, managed public expenditure, sustained their finances and prioritised spending across critical sectors. This edition introduces a revised methodology that gives greater attention to the developmental impact of public spending, with an assessment of expenditure in agriculture, health, education, and water, sanitation and hygiene (WASH).

The report highlights Lagos State's emergence as the best-performing state in the federation, with an Internally Generated Revenue (IGR) of N1.71tn. Enugu recorded a 125.91% increase in IGR, rising from N180.5bn in 2024 to N407.76bn in 2025. It also examines states' dependence on Federation Account allocations, expenditure patterns, capital investments, debt obligations and fiscal pressures across the federation.

Through its assessment of revenue performance, fiscal viability, debt sustainability and spending in critical sectors, the report provides insights into state governments' fiscal decisions and how public resources are managed to support development. It also highlights the need for stronger domestic revenue mobilisation, credible budgeting, responsible borrowing and greater accountability in public financial management.