Lagos, Ogun, and Kaduna states have emerged as Nigeria’s best-performing subnational governments in the 2025 edition of the Phillips Consulting State Performance Index (pSPI), a new assessment that evaluates governance, fiscal strength, service delivery, and citizen perception across the country.
According to the report, Lagos ranked first nationally, followed by Ogun in second place and Kaduna in third, making them the top-performing states among Nigeria’s 36 states and the Federal Capital Territory (FCT).
The assessment was produced by Phillips Consulting (pcl.) through a methodology that combined objective performance indicators and citizen perception data.
According to the report, objective performance data accounted for 70% of each state’s score and was sourced from audited state accounts, government databases, and independent research.
The remaining 30% came from a nationwide perception survey conducted over three months and involving 9,498 respondents reached through SMS, email, digital advertisements, social media platforms, and in-person engagements across all states.
What the data is saying
Lagos secured the number one position largely due to its overwhelming fiscal strength and economic independence.
- The report ranked Lagos first nationally in internally generated revenue (IGR) per capita, IGR per square kilometre, and revenue generated through trade routes.
- About 69% of the state’s total revenue comes from internally generated sources, the highest ratio in Nigeria and significantly above the national average of 18%. Lagos also ranked second in internet penetration, reinforcing its position as Nigeria’s commercial and digital hub.
However, the report identified notable weaknesses. Lagos ranked 36th in debt per capita, indicating a significant debt burden. It also performed poorly in public service indicators, ranking 32nd in public hospitals per population and 36th in functional basic education facilities per population.
Ease of doing business was ranked 29th nationally, suggesting lingering regulatory and infrastructural bottlenecks. Citizen satisfaction scores were also relatively weak across roads, healthcare, education, water supply, environmental cleanliness and government responsiveness.
Ogun State placed second nationally and was classified as an exceptional performer.
- The state ranked second in both IGR per capita and IGR-to-total-revenue ratio, demonstrating a strong ability to generate income independently of federal allocations. Ogun also ranked second in assets per capita, seventh in capital expenditure per capita, and first nationally in internet penetration. The report noted that Ogun generates more than half of its revenue internally, reflecting strong industrial activity, strategic trade routes, and economic resilience.
Despite these strengths, Ogun’s performance was weighed down by debt-related concerns.
The state ranked 32nd in debt per capita and 34th in liabilities per capita. It also ranked 31st in ease of doing business and received low citizen satisfaction scores in roads, healthcare, clean water supply, environmental management and government support for businesses.
Kaduna emerged as the third-best-performing state in the country and earned an excellent performer rating.
- The report highlighted Kaduna’s strong financial health, ranking it first nationally in assets per capita. It also ranked 10th in IGR-to-total-revenue ratio and maintained strong industrial and manufacturing activity. Kaduna’s diversified economy, which spans agriculture, manufacturing, commerce and services, contributed significantly to its ranking.
- However, Kaduna faces significant challenges. The report ranked the state 32nd in ease of finding meaningful employment and pointed to widespread dissatisfaction with healthcare, education and security outcomes.
Security concerns, particularly in rural communities, were identified as a major obstacle to development and investment. Citizen satisfaction levels across most governance indicators remained relatively low despite the state’s strong objective performance metrics.
More insights
Beyond the performance of the top-ranked states, the report highlights significant shifts across Nigeria’s governance landscape, reflecting the growing influence of fiscal discipline, transparency, and reform-driven policies on state rankings.
One of the most notable developments was the rise of several previously low-ranked states.
- Adamawa recorded the strongest improvement, climbing from 26th position in 2024 to 4th in 2025. Niger also posted a remarkable turnaround, moving from 29th to 5th place, while Abia jumped from the bottom of the rankings in 36th position to 10th.
According to the report, these gains were driven by deliberate reforms, stronger fiscal management, and improvements in objective performance indicators.
The report also points to a changing regional balance. The South-West emerged as the highest-performing geopolitical zone, led by Lagos and Ogun’s top-two finishes and supported by Oyo’s strong showing.
The North-West maintained a competitive position, buoyed by Kaduna’s third-place ranking and Jigawa’s presence among the country’s top performers. The South-East also strengthened its standing, largely due to Abia’s dramatic rise into the national top 10.
What you should know
The ranking comes amid fresh economic and governance developments in the three leading states.
- Ogun State recently announced plans to generate N500 billion in internally generated revenue for its 2026 fiscal year, underscoring the state’s push toward greater fiscal independence and reduced reliance on federal allocations.
- Lagos State has also continued to receive recognition for its business environment. Earlier this year, the state emerged as Nigeria’s leading subnational entity for ease of doing business in a nationwide assessment, reinforcing its reputation as the country’s commercial capital.
For Kaduna, the latest ranking further highlights the state’s importance as one of northern Nigeria’s leading economic and industrial centres. However, the report suggests that addressing insecurity, improving public services and expanding employment opportunities will be critical if the state hopes to challenge Lagos and Ogun for the top position in future editions.
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