Enugu and Abia Lead Revenue Growth in Nigeria After Subsidy Removal

Enugu State has topped the list for revenue growth among Nigerian states after the removal of fuel subsidies. The state’s revenue surged from N102.68 billion in 2022 to N665.85 billion in 2025. This increase shows a compound annual growth rate (CAGR) of 86.48 percent. This information comes from a report by BudgIT titled, “Nigeria’s Reforms: What Has Changed Across Nigeria’s States? An Analysis of State Finances in the Post-Subsidy Years.”

Abia State follows closely with a revenue CAGR of 66.05 percent. Niger, Taraba, and Bauchi recorded growth rates of 60.47 percent, 54.33 percent, and 53.87 percent, respectively. These figures suggest that the increase in funds for state governments after the subsidy removal is not just for the bigger states.

The report states that total state revenue grew at a CAGR of 47.57 percent during the review period. Edo State recorded a CAGR of 53.28 percent, followed by Imo with 52.89 percent, Katsina with 52.33 percent, Anambra with 52.20 percent, and Osun with 52.07 percent.

Kogi, Plateau, Oyo, Cross River, Ekiti, and Gombe also showed annual revenue growth rates of about 50 percent or more. BudgIT pointed out that a lot of this growth comes from higher allocations from the Federation Account Allocation Committee (FAAC). They also noted that some states improved their internally generated revenue.

Lagos Maintains Highest Revenue

Even though Lagos did not grow as fast as others, it still had the highest revenue during this period. The state’s revenue increased from N889.45 billion in 2022 to N2.63 trillion in 2025. Its CAGR of 43.49 percent ranked 22nd among the states studied. This shows a gap between the size of a state’s revenue and its growth rate.

Delta State also saw significant revenue growth, rising from N540.84 billion in 2022 to N1.45 trillion in 2025. However, its CAGR of 38.90 percent was lower than the overall growth rate of the other states in the study. The report highlights that states with lower revenue bases often expand their financial capacity faster than states with bigger economies.

At the bottom of the growth ranking is Nasarawa, which had a CAGR of 27.94 percent. Kebbi followed with 32.59 percent, Zamfara with 32.69 percent, Ogun with 32.71 percent, and Kaduna with 33.55 percent.

Akwa Ibom and Rivers Not Included

The analysis looked at 34 states since Akwa Ibom and Rivers were excluded due to missing data on budget implementation. BudgIT used actual data from Q1-Q4 to compare fiscal performance and spending from 2022 to 2025. Because of this, the two oil-rich states could not be compared with others.

PREMIUM TIMES reported that Governor Umo Eno’s administration in Akwa Ibom State collected N2.934 trillion in revenue over 38 months. This highlights the need for regular budget reports to assess how well state governments manage public funds.

More Revenue Doesn’t Mean More Development

BudgIT cautioned that just because state revenues are increasing does not mean that governments will use that money wisely. The analysis looked at revenue and spending growth, including costs for staff, general expenses, and capital projects. It also examined spending on important sectors like education, health, and infrastructure.

The report noted that different revenue performance among states reflects their economic situations and how well they manage revenue collection. While statutory allocations make up a lot of the revenue increase, the report emphasized the need for better local revenue collection to ensure long-term financial health and less reliance on federal funds.

READ ALSO: Akwa Ibom, Rivers excluded from post-subsidy fiscal assessment because of missing data

The report also warned that higher public revenue should come with transparency and accountability. This is key to ensuring that people benefit from the money generated from the reforms. BudgIT stated, “Transparency, accountability, and citizen participation remain essential to ensuring that increased revenues produce tangible benefits for citizens.” They suggested timely budget reports, open procurement processes, and better public oversight as vital steps to make sure increased government funds lead to better public services.