BudgIT, Nigeria’s leading civic-tech organisation focused on transparency and accountability in public finance, has released the 2020 edition of its State of States report, offering a sobering diagnosis of fiscal health across the country’s 36 states.

Unveiled on September 24, the report presents a data-driven assessment of subnational fiscal performance, debt profiles, and expenditure priorities. It reveals that many states are operating in deep financial distress, grappling with weak internally generated revenue (IGR), ballooning debt burdens, and recurrent spending that far outweighs capital investments.

The report was led by Abel Akeni, BudgIT’s Head of Research and Policy Advisory, with project management by Product Manager Folasayo Onigbinde and design direction from Segun Adeniyi.

According to BudgIT’s 2020 Fiscal Sustainability Index, Rivers State emerged as the most fiscally stable, distinguished as the only state capable of covering its recurrent expenditure using IGR and value-added tax (VAT) revenue alone. Rivers also recorded total revenue surpassing total debt and prioritized capital expenditure over overheads—an approach BudgIT describes as “fiscally responsible and future-focused.”

In stark contrast, eight states—Osun, Bauchi, Plateau, Gombe, Adamawa, Ekiti, Kogi, and Oyo—were unable to generate sufficient revenue to fund their recurrent expenses in 2019, including salaries, overheads, and debt servicing. The report warns that such states may face severe governance disruptions unless urgent reforms are introduced to expand revenue and reduce waste.

BudgIT also flagged skewed fiscal priorities across the country. While five states—Rivers, Kaduna, Akwa Ibom, Ebonyi, and Kebbi—allocated a larger portion of their budgets to capital projects, 31 states directed the bulk of their spending toward recurrent costs. Alarmingly, 11 states, including Adamawa, Kogi, and Bauchi, *spent more on administrative overheads than on development-focused capital projects*.

*Debt accumulation remains a pressing concern.* Between 2014 and 2019, the total debt burden of Nigerian states surged by 162.87%, from N2.05 trillion to N5.39 trillion. Ten states accounted for nearly half of this increase: Lagos, Rivers, Akwa Ibom, Imo, Kogi, Edo, Osun, Cross River, Kaduna, and Adamawa. Disturbingly, some of these states also feature among those with weak IGR and poor expenditure planning.

Project Manager Folasayo Onigbinde emphasised the importance of transforming technical fiscal data into practical tools for accountability.

“Our goal with State of States is to empower citizens and policymakers with evidence-based insights on how public resources are managed. Fiscal sustainability is not just a numbers game—it’s about ensuring that governments can meet the needs of their people without mortgaging the future,” she said.

BudgIT’s report calls for urgent action: improved revenue collection, prudent spending, and a renewed commitment to fiscal transparency. The organization argues that solving Nigeria’s subnational fiscal crisis is foundational to addressing broader development challenges, including poverty, infrastructure gaps, and youth unemployment.