World Bank: Lagos and Enugu lead Nigerian states in revenue generation

A World Bank report titled ‘Beyond the Federal Purse: How Higher Revenues Shaped State Priorities’ reveals that only Lagos and Enugu states generated enough internally generated revenue (IGR) to cover their recurrent expenditures in 2025.

While aggregate state IGR grew by 55 per cent between 2023 and 2025 due to digital automation and improved tax administration, most states remain heavily dependent on federal allocations. On average, state IGR covered only about 50 per cent of recurrent spending in 2024 and 2025.

In 2025, Lagos generated revenue equivalent to 160 per cent of its recurrent spending. Enugu recorded a significantly higher ratio of 377 per cent, with its total IGR growing from N25 billion to N209 billion—a 732 per cent increase in real terms. The World Bank warned that the reliance on federal funds poses a fiscal risk if federally collected revenues decline.