Cross River State has emerged as the worst-performing state in Nigeria’s 2026 fiscal performance ranking, while Lagos retained its position as the best.
The latest State of States Report released by BudgIT placed Cross River 35th out of 35 ranked states with an index score of 22.12. Lagos led the table with 66.97 points, followed closely by Enugu with 65.45.
The report, the 11th edition of the annual assessment, evaluated how states generated revenue, managed expenditure, handled debt and prioritised spending in key sectors in 2025. Rivers State was excluded because it failed to produce audited financial statements and budget implementation reports after the declaration of a state of emergency last year.
Lagos’s continued dominance was driven by its strong internally generated revenue, which stood at N1.71 trillion — the highest in the country. The state’s diversified economy has reduced its dependence on monthly allocations from the Federation Account.
Enugu recorded one of the most impressive improvements. Its internally generated revenue rose by 125.91 per cent, from N180.5 billion in 2024 to N407.76 billion in 2025, propelling the state into second position nationally.
At the bottom of the table, Cross River finished behind Plateau (34th with 32.45 points) and Kogi (33rd with 34.07 points). The state’s low ranking reflects persistent weaknesses in revenue mobilisation and the effective use of public funds.
BudgIT noted that states at the top of the ranking generally show stronger capacity to raise revenue internally and manage their finances without placing excessive pressure on available resources. Those at the lower end remain heavily reliant on federal allocations and face tighter fiscal space for capital projects and social services.
The report, themed “From Allocation to Impact: Rethinking State Spending Priorities,” stressed that high federal allocations alone do not guarantee good performance. What matters is the ability of states to generate additional revenue, control spending and direct resources to critical areas such as health, education, agriculture and water supply.
For Cross River, the last-place finish raises fresh questions about the state’s fiscal management and its capacity to deliver meaningful development outcomes for residents.
The full report is available on the BudgIT website, www.budgit.org.
