Governance Index: Lagos, Ogun, Kaduna rated best performing states

Lagos, Ogun and Kaduna have been named the three best-performing states in Nigeria in the 2025 Phillips Consulting State Performance Index (pSPI).

The ranking assessed all 36 states and the Federal Capital Territory (FCT) based on governance, financial strength, public service delivery and citizens’ opinions.

Lagos came first, Ogun second and Kaduna third.

The report was prepared by Phillips Consulting using a method that combined official performance data and public perception. Objective data made up 70% of the score, while citizens’ views accounted for 30%.

The perception survey was conducted over three months and involved 9,498 respondents across Nigeria.

Why Lagos Ranked First

Lagos topped the ranking mainly because of its strong economy and ability to generate revenue internally.

The state ranked first in internally generated revenue (IGR) per capita, IGR per square kilometre and revenue from trade routes. About 69% of Lagos’ total revenue comes from internal sources, far above the national average of 18%.

Lagos also ranked second in internet penetration, strengthening its position as Nigeria’s commercial and technology hub.

However, the report highlighted some weaknesses. Lagos ranked 36th in debt per capita, showing a high debt burden. It also performed poorly in the number of public hospitals and functional basic education facilities available to residents.

The state ranked 29th in ease of doing business and recorded low citizen satisfaction in areas such as roads, healthcare, education, water supply, environmental cleanliness and government responsiveness.

Ogun’s Performance

Ogun State was ranked second and classified as an exceptional performer.

The state ranked second in IGR per capita and IGR-to-total-revenue ratio, showing strong financial independence. Ogun also ranked second in assets per capita, seventh in capital expenditure per capita and first in internet penetration.

According to the report, more than half of Ogun’s revenue is generated internally, driven by industrial activities and strategic trade routes.

Despite these strengths, Ogun ranked low in debt-related indicators. It placed 32nd in debt per capita and 34th in liabilities per capita. The state also ranked 31st in ease of doing business and received low satisfaction ratings from residents in roads, healthcare, water supply, environmental management and business support.

Kaduna’s Performance

Kaduna was ranked third and classified as an excellent performer.

The state ranked first in assets per capita and 10th in IGR-to-total-revenue ratio. Its economy benefits from agriculture, manufacturing, commerce and services.

The report noted that Kaduna’s diversified economy contributed significantly to its high ranking.

However, the state faces challenges in employment, healthcare, education and security. Kaduna ranked 32nd in ease of finding meaningful employment, while security concerns, especially in rural communities, remain a major challenge to development and investment.

States That Improved Significantly

Several states recorded major improvements in the rankings.

Adamawa moved from 26th place in 2024 to 4th in 2025.

Niger rose from 29th to 5th place.

Abia jumped from 36th place to 10th.

The report attributed these gains to reforms, better financial management and improvements in governance indicators.

Regional Performance

The South-West emerged as the best-performing geopolitical zone, led by Lagos and Ogun, with support from Oyo State’s strong performance.

The North-West also performed well, helped by Kaduna’s third-place ranking and Jigawa’s strong showing.

The South-East improved significantly, largely because of Abia’s rise into the top 10.

Recent Developments

Ogun State recently announced plans to generate N500 billion in internally generated revenue in 2026 as part of efforts to reduce dependence on federal allocations.

Lagos has also received recognition as Nigeria’s leading state for ease of doing business, reinforcing its reputation as the country’s commercial capital.

For Kaduna, the report noted that improving security, public services and job opportunities will be important if the state hopes to challenge Lagos and Ogun for the top position in future rankings.