Enugu, Abia Lead Nigeria’s States In Revenue Growth As Fiscal Reforms Reshape State Finances
By Iroyin Yoruba Television News Desk
Enugu and Abia states have emerged as the two fastest-growing states in Nigeria in terms of actual revenue between 2022 and 2025, according to a new analysis of state finances covering the period after the removal of the petrol subsidy.
The figures show that Enugu recorded an extraordinary nominal compound annual growth rate of 86.48 per cent, while Abia followed with 66.05 per cent, placing the two South-East states at the top of the national ranking among the states covered by the analysis.
The findings provide a fresh picture of how Nigeria's states have responded financially to the major economic changes that followed the removal of the petrol subsidy in 2023 and subsequent changes in federal revenue distribution.
According to the analysis, Enugu's actual revenue increased from N102.68 billion in 2022 to N665.85 billion in 2025, representing one of the largest proportional increases recorded by any state during the period.
Abia's revenue also rose substantially, putting the state second in the national ranking for revenue growth.
The analysis found that the increase was driven by a combination of factors, particularly higher allocations from the Federation Account Allocation Committee, commonly known as FAAC, as well as improved internally generated revenue in some states.
However, the figures also raise a wider question about what states are doing with the additional money becoming available to them.
Higher revenue does not automatically mean improved living standards.
The effectiveness of the post-subsidy fiscal period will ultimately depend on whether the additional resources reaching state governments are translated into roads, schools, hospitals, water systems, security, jobs and other services that directly affect citizens.
The latest findings therefore provide both a positive financial picture and a reminder that revenue growth must be accompanied by transparency, responsible expenditure and measurable development.
Enugu Records The Fastest Revenue Growth
Enugu's position at the top of the ranking is one of the most striking aspects of the analysis.
The state's actual revenue increased from N102.68 billion in 2022 to N665.85 billion in 2025.
That represents an increase of more than N563 billion over three years.
Measured using compound annual growth, the increase translates to 86.48 per cent annually over the period.
The result placed Enugu ahead of every other state included in the analysis.
The performance is particularly significant because the state has also been pursuing reforms designed to increase internally generated revenue and reduce dependence on federal transfers.
Earlier fiscal information about the state has highlighted efforts to improve revenue administration, consolidate collections and make the state's financial system more centralised and transparent.
The recent figures suggest that those reforms, together with higher federal allocations, have contributed to a substantially larger pool of resources.
However, it would be inaccurate to attribute the entire increase to internally generated revenue.
The fiscal analysis specifically notes that higher FAAC disbursements accounted for a significant portion of the overall increase in state revenues.
This distinction matters because a state receiving more money from the Federation Account is not necessarily becoming more economically productive.
A rise in federal transfers can increase the amount available to a state without necessarily demonstrating that the state's underlying economy has expanded at the same rate.
For Enugu, therefore, the more important long-term question is whether the increase can be sustained through stronger local economic activity, investment and internally generated revenue.
Abia Comes Second
Abia State recorded the second-highest revenue growth rate during the period.
The state achieved a 66.05 per cent compound annual growth rate, according to the analysis.
The performance places Abia significantly ahead of many states that traditionally have much larger revenue bases.
The development is important for a state that has been attempting to reposition its economy around manufacturing, commerce, infrastructure, human capital and private investment.
Abia has historically been known for its strong concentration of small and medium-sized businesses, particularly in commercial centres such as Aba.
The ability of the government to increase public revenue can therefore have an important relationship with the state's broader economic ambitions.
However, as with Enugu, the revenue figures should not automatically be interpreted as proof that all sectors of the state's economy have expanded at the same pace.
Revenue can increase for several reasons.
A state may receive higher federal allocations.
It may improve tax collection.
It may recover previously uncollected revenue.
It may introduce new fees.
It may receive grants or other transfers.
It may also benefit from unusual or one-off receipts.
The quality and sustainability of each source therefore matter.
The fiscal analysis itself emphasises the importance of understanding how states generated their additional resources rather than looking only at the final revenue figure.
Niger, Taraba And Bauchi Also Record Strong Growth
The revenue growth was not limited to the South-East.
Niger State ranked third with a compound annual growth rate of 60.47 per cent.
Taraba followed with 54.33 per cent, while Bauchi recorded 53.87 per cent.
These figures show that several states across different regions of Nigeria experienced substantial increases in available resources during the post-subsidy period.
Edo also recorded strong growth, with a rate of 53.28 per cent.
Imo followed at 52.89 per cent, while Katsina recorded 52.33 per cent.
Anambra recorded 52.20 per cent, and Osun posted 52.07 per cent.
Kogi, Plateau, Oyo, Cross River, Ekiti and Gombe were also among states that recorded growth rates around 50 per cent or higher.
The distribution suggests that the increase in state resources has been broad rather than restricted to one geographic region.
It also demonstrates how the new fiscal environment has affected state governments differently.
Some states have combined stronger federal allocations with improved local revenue collection.
Others have benefited mainly from changes in federal transfers.
The difference between these two situations is important because internally generated revenue is generally considered a more direct indicator of a state's capacity to mobilise resources from its own economy.
Lagos Remains Nigeria's Revenue Giant
Despite not recording the fastest proportional growth, Lagos remained the state with the largest actual revenue during the period.
Its revenue increased from N889.45 billion in 2022 to N2.63 trillion in 2025.
That is an enormous increase in absolute terms.
However, because Lagos already had a very large revenue base, its percentage growth was lower than that of smaller states.
The state's compound annual growth rate was 43.49 per cent, placing it 22nd in the ranking by growth rate.
The distinction between absolute revenue and percentage growth is important.
A state that increases revenue from N100 billion to N200 billion has achieved a 100 per cent increase.
Another state could increase revenue from N1 trillion to N1.5 trillion and record a lower 50 per cent increase, even though it gained N500 billion compared with the first state's N100 billion increase.
The latest figures therefore show why Nigeria's state finances need to be evaluated using several measures rather than one ranking.
Lagos remains financially dominant in terms of the total amount of revenue generated, while Enugu and Abia stand out for the speed at which their revenues expanded.
Delta Also Records Major Revenue Increase
Delta State also recorded a significant increase in actual revenue.
The state's revenue rose from N540.84 billion in 2022 to N1.45 trillion in 2025.
That represents a substantial increase in the resources available to the state government.
However, its compound annual growth rate of 38.90 per cent was below the overall growth rate recorded across the states included in the analysis.
Delta's experience illustrates another important feature of Nigeria's state finances.
Oil-producing states can have extremely large revenue bases because of their share of federally distributed resources.
Yet a large revenue base does not necessarily translate into the fastest percentage growth.
The structure of the state's revenue, its population, existing commitments and expenditure requirements all influence its fiscal position.
Not Every State Experienced The Same Growth
While several states recorded strong revenue increases, the fiscal picture was not uniformly positive across the country.
Nasarawa recorded the lowest compound annual revenue growth among the states covered, at 27.94 per cent.
Kebbi recorded 32.59 per cent, Zamfara 32.69 per cent, Ogun 32.71 per cent, and Kaduna 33.55 per cent.
These figures still represent growth, but they were considerably lower than the rates recorded by Enugu, Abia, Niger and other leading states.
The variation highlights the different economic and fiscal conditions facing Nigeria's 36 states.
Some states have stronger commercial economies.
Some have larger populations and tax bases.
Others depend heavily on federal transfers because their internally generated revenue remains comparatively small.
Some states have also struggled with the availability or quality of financial records, making it more difficult for independent analysts and citizens to assess their performance.
Two States Were Excluded From The Comparison
The analysis covered 34 states, rather than all 36.
Akwa Ibom and Rivers states were excluded because complete budget implementation information was not available for them in a form that allowed the researchers to make a comparable assessment.
The omission is significant because both states have historically been among Nigeria's important revenue-generating states.
Akwa Ibom is a major oil-producing state, while Rivers has traditionally ranked among the country's biggest state economies and revenue recipients.
Their exclusion means that the national ranking should be interpreted with some caution.
It does not mean that the two states experienced no revenue growth.
Rather, the available information did not meet the criteria required for inclusion in the particular comparison.
The situation also highlights a broader problem in public financial management.
Citizens cannot properly assess how their governments are performing if complete and timely financial information is unavailable.
Budget implementation reports are particularly important because approved budgets show what governments planned to do, while implementation reports provide evidence of what actually happened.
Why Budget Implementation Matters
A state can announce a large budget and record substantial revenue growth without citizens necessarily experiencing a corresponding improvement in public services.
For that reason, financial analysts increasingly focus not only on how much money a government receives but also on how the money is spent.
If revenue increases but spending is dominated by administrative costs, salaries, overheads and debt obligations, the development impact may remain limited.
On the other hand, if increased revenue is directed toward productive capital projects, health, education, infrastructure and economic development, the benefits can extend beyond the government's balance sheet.
This is one of the major issues raised by the latest state-finance analysis.
Revenue growth is an opportunity.
It is not an achievement that automatically guarantees development.
The real measure is whether citizens receive better value from the additional resources.
The Role Of FAAC In The Revenue Increase
One of the central factors behind the rise in state revenue was the increase in disbursements from FAAC.
FAAC distributes revenue accruing to the federation among the federal, state and local governments.
The amount available for distribution can fluctuate depending on oil revenues, taxes, customs collections, exchange-rate movements and other sources of government income.
The post-subsidy period changed the federal revenue environment significantly.
The removal of the petrol subsidy reduced one major expenditure burden on the federal government while also changing the financial relationship between the federation and subnational governments.
At the same time, inflation and exchange-rate changes affected the naira value of several federal revenues.
These factors contributed to larger nominal allocations in naira terms.
However, higher nominal revenue does not necessarily mean that governments have experienced the same level of increase in purchasing power.
Inflation must be considered.
If revenue rises rapidly while the cost of construction, medicine, fuel, food, salaries and other government inputs also rises, a government may not be able to deliver as much additional real value as the headline revenue figure suggests.
That is why the interpretation of the figures requires more than simply celebrating the percentage increases.
Internally Generated Revenue Remains Critical
For states seeking long-term financial stability, internally generated revenue remains particularly important.
IGR refers broadly to revenue raised by state governments from sources within their jurisdictions.
These can include taxes, levies, fees, licences and other legitimate government receipts.
A state that can finance a larger portion of its expenditure through its own economic activity has greater fiscal independence than one that depends almost entirely on federal transfers.
The latest analysis noted that improved IGR mobilisation contributed to revenue growth in several states.
This is particularly relevant for Enugu and Abia.
Both states have significant commercial and economic potential that can provide a wider base for local revenue generation.
But there is also a danger.
Aggressive taxation can place pressure on businesses and households if governments focus on collecting more money without improving the environment in which businesses operate.
Revenue mobilisation therefore needs to be balanced.
Governments must collect legitimate taxes while ensuring that businesses can survive, expand and create employment.
Enugu's Revenue Strategy
Enugu has increasingly presented revenue reform as part of a broader effort to make the state financially stronger.
The state's recent financial strategy has included efforts to improve revenue collection, reduce leakages and make payment systems easier for taxpayers.
The government has also talked about using internally generated revenue to support recurrent obligations while directing more resources toward development.
These policies are important because a state that depends heavily on federal transfers remains vulnerable to changes in national revenue.
Enugu's rapid revenue growth suggests that the state's fiscal capacity has changed considerably since 2022.
The challenge now is maintaining the momentum.
A temporary increase caused largely by higher federal transfers would produce a different long-term outcome from an increase supported by a growing local economy.
For the state, the strongest result would be to combine both.
Higher federal allocations could provide immediate fiscal space, while improved local production, investment and tax administration could build a more sustainable revenue base.
Abia's Economic Opportunity
Abia faces a similar opportunity.
The state has one of the country's best-known clusters of small and medium-sized businesses.
Aba's manufacturing and commercial ecosystem gives the state a potential advantage in expanding its local economic base.
If businesses become more productive, formalise their operations and generate more taxable economic activity, the government can potentially increase IGR without necessarily imposing heavier tax burdens.
That would be a more sustainable approach than simply increasing taxes.
Infrastructure also plays an important role.
Businesses need good roads, reliable electricity, water, security and efficient public services.
When those conditions improve, economic activity can expand.
That expansion can then generate additional revenue for the government.
The relationship between public finance and private-sector growth is therefore circular.
Government needs revenue to provide infrastructure.
Businesses need infrastructure to grow.
Growing businesses create jobs and generate more economic activity.
That activity creates a broader tax base.
A stronger tax base then gives government additional resources.
Revenue Growth Must Reach Citizens
The central question now facing states with rapidly increasing revenues is straightforward:
What are citizens receiving in return?
The answer cannot be measured only by government announcements.
Citizens need to see improvements in everyday life.
A successful fiscal reform should eventually be visible through better roads, improved hospitals, functioning schools, reliable water systems, stronger public transportation, better security and expanded economic opportunities.
It should also be visible in government transparency.
Citizens should be able to find out how much money their state receives, what it spends and which projects are being implemented.
The latest fiscal analysis emphasises this point.
It cautions that higher revenue should not be assessed simply by the amount of money collected.
The quality of expenditure matters equally.
Transparency Becomes More Important As Revenue Rises
As state revenues increase, the importance of transparency also increases.
A government managing N100 billion faces serious responsibilities.
A government managing several hundred billion naira has an even greater responsibility.
And when a state moves toward trillion-naira budgets, citizens need clear information about how those resources are being deployed.
Budget documents, quarterly implementation reports, procurement records and audited financial statements all play important roles.
Without such information, citizens cannot effectively evaluate whether revenue growth is producing value.
The analysis therefore stressed the need for timely publication of budget implementation reports and stronger public oversight.
Open procurement is another important element.
Large increases in government revenue can create opportunities for infrastructure development, but they can also create greater risks of waste or poor procurement if oversight is weak.
Transparent procurement processes help citizens and institutions understand how contracts are awarded and whether public money is being spent competitively.
Revenue Growth And The Cost Of Living
There is also another dimension that should not be ignored.
Nigeria's post-subsidy period has been accompanied by significant changes in the cost of living.
Although nominal state revenues have increased, households have also faced higher costs for food, transportation, housing, healthcare and other necessities.
This means that state governments cannot measure success simply by comparing today's naira revenue with figures from 2022.
The purchasing power of that money matters.
A road that cost N1 billion several years ago may cost considerably more today.
Medical equipment, construction materials, school supplies and other government inputs have also become more expensive.
Consequently, a large increase in revenue may be partly absorbed by higher costs.
This makes efficient spending more important.
Governments need to ensure that additional funds generate maximum value rather than simply increasing the size of expenditure.
What The Figures Mean For Other States
The performance of Enugu and Abia also offers lessons for other states.
First, state governments need reliable financial information.
Without accurate revenue and expenditure data, it is difficult to identify weaknesses or design effective reforms.
Second, states need to strengthen internally generated revenue without damaging the local economy.
Third, governments need to reduce unnecessary leakages.
Fourth, revenue increases should be linked to measurable development outcomes.
And finally, states should publish information regularly so citizens can track performance.
The experience of Enugu and Abia demonstrates that state finances can change rapidly.
But rapid growth also creates responsibility.
A state that receives substantially more money must demonstrate how that money improves the lives of its people.
A New Fiscal Era For Nigeria's States
The post-subsidy period is becoming an important chapter in Nigeria's fiscal history.
The removal of the petrol subsidy fundamentally changed public finances.
States now receive larger allocations in nominal terms, but they also face greater demands from citizens.
They must deal with infrastructure deficits, rising personnel costs, social needs and economic pressures.
At the same time, the federal government expects states to play a larger role in economic development.
The latest figures show that some states are adapting more rapidly than others.
Enugu's 86.48 per cent revenue growth and Abia's 66.05 per cent place them at the forefront of that change.
Niger, Taraba, Bauchi, Edo, Imo, Katsina, Anambra and Osun also recorded strong increases.
Lagos continues to dominate in absolute revenue.
The overall picture is therefore one of significant fiscal expansion accompanied by major differences between states.
The Test Is What Happens Next
For Enugu and Abia, the most difficult part may now be maintaining the progress.
Rapid revenue growth can create political pressure because citizens naturally expect visible improvements when government income rises.
The governments will therefore be judged not only by future revenue figures but by what those revenues accomplish.
If roads are completed, schools improved, hospitals equipped, businesses supported and jobs created, the fiscal gains will have a stronger developmental meaning.
If revenues rise while citizens see little change, questions about spending priorities and accountability will inevitably follow.
This is why the latest analysis should not simply be viewed as a ranking of winners and losers.
It is also a measure of the opportunities and responsibilities facing state governments.
Conclusion
The latest assessment of Nigeria's state finances has placed Enugu and Abia at the forefront of revenue growth in the post-subsidy era, with compound annual growth rates of 86.48 per cent and 66.05 per cent respectively.
Enugu's actual revenue rose from N102.68 billion in 2022 to N665.85 billion in 2025, while Abia also recorded a major increase.
The wider analysis found strong growth across numerous states, reflecting increased FAAC allocations and improved internally generated revenue mobilisation.
Lagos remained the largest state in terms of actual revenue, despite recording a lower proportional growth rate than several smaller states.
The figures show that Nigeria's state governments now have access to significantly greater financial resources than they did several years ago.
But the numbers alone cannot determine whether the country is moving in the right direction.
The ultimate test will be whether those resources translate into better lives for citizens.
For Enugu and Abia, the new ranking provides evidence of remarkable financial expansion.
It also creates a much larger responsibility.
The two states now have an opportunity to demonstrate that rapid revenue growth can be converted into sustainable economic development, improved infrastructure, stronger public services and greater prosperity for their citizens.
For other states, the lesson is equally clear: improving public finances requires more than waiting for federal allocations. Strong revenue administration, economic growth, transparency, responsible expenditure and citizen oversight must work together.
Nigeria's post-subsidy fiscal era is therefore not simply about how much money states receive.
It is about what they do with it.