Lagos State has been named Nigeria’s best-performing state in the 2025 State Performance Index (pSPI). It ranked first among the 36 states and the Federal Capital Territory (FCT) in the latest report from Phillips Consulting Limited (pcl.), a top business and management consulting firm.
The National Assessment Report shows that Lagos took the top spot in the Overall pSPI Ranking. The state outperformed others in important areas like governance, economy, and development indicators.
Lagos is recognized as the top revenue-generating state in Nigeria. It ranked first in Internally Generated Revenue (IGR) per capita, IGR per square kilometre, and IGR per trade route. The state also came second in internet access and digital penetration, showing its growing digital economy and tech scene.
Phillips Consulting highlighted that Lagos has a strong financial independence. About 69 percent of its total revenue comes from internal sources, while the national average is only 18 percent.
"Lagos ranks first in IGR per capita, per km² and per trade route," the report said. It also mentioned that the state’s strong internal revenue cuts down its dependence on federal funds.
The consulting firm described the pSPI as a useful tool for assessing how well a government performs and spotting areas needing policy changes.
"The 2025 edition of the pcl. State Performance Index builds on the 2024 report with a sharper, more data-driven approach. It expands performance indicators and focuses less on perception and more on measurable outcomes. This ensures states are rated based on real progress and impact," the report said.
The report also pointed out Lagos’ economic importance. It called the state Nigeria’s economic powerhouse, saying its gross domestic product (GDP) is larger than that of several African nations.
"Lagos is the economic backbone of Nigeria, and the data confirms it. With a GDP larger than several African countries, Lagos thrives on a strong mix of commerce, finance, technology and international trade," the report explained.
It further noted that Lagos’ access to a major seaport, its lively informal economy, and its strength in financial services have solidified its role as Nigeria’s clear economic leader.
In the overall ranking, Ogun State came second, while Kaduna State took third place. Adamawa and Niger States rounded out the top five. Nasarawa, Gombe, Jigawa, Plateau, and Abia took the sixth to tenth spots respectively.
Responding to the report, Governor Babajide Sanwo-Olu said this recognition shows the positive effects of his administration’s policies.
"It gladdens our hearts that our administration’s modest achievements are having direct, positive and measurable impacts on the people of Lagos," he said.
Sanwo-Olu noted that this ranking matches several recent assessments that have put Lagos ahead of other states in areas like business environment, technology, and tourism.
According to him, this recognition pushes the government to continue reforms and speed up development projects in the state.
"What the latest ranking has done is for us to get back to work and do it a lot better and smarter," the governor stated.
He mentioned recent awards that have placed Lagos among Africa’s top places for nightlife, technology innovation, and ease of doing business. He sees these as proof of the state’s growing importance on the global stage.
"We have a mission to deliver a greater Lagos before the end of our tenure and we won’t rest until the last day of this government, working for the people of the state," Sanwo-Olu added.
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