From the oil-rich South-South to the agrarian North-West, Nigeria’s regions earn and spend differently—but all share a crisis of transparency. This analysis (part 5 of 5) explores how regional fiscal patterns from BudgIT’s State of the States 2025 Report reveal that openness, not oil, drives true development.
By Nurudeen O. Alimi
In a country that prides itself on federal balance, Nigeria’s development remains anything but balanced.
Some regions build; others barely maintain. Some innovate; others wait for Abuja’s next disbursement. Yet all draw from the same national purse.
BudgIT’s State of the States 2025 Report shows that the difference isn’t geography — it’s governance. And the one factor that consistently separates thriving regions from struggling ones is transparency.
Follow the Money, Find the Mindset
Across the six geopolitical zones, total state revenue in 2024 stood at over ₦13.7 trillion (₦11.38 trillion from FAAC and ₦2.36 trillion in IGR). But how that money was managed—and how openly it was reported—varied dramatically.
South-West: Transparency and Enterprise
Led by Lagos, Ogun, Ekiti, and Ondo, the South-West recorded the highest average IGR-to-FAAC ratio (47%). Lagos alone contributed more internally than twenty states combined.
These states also top BudgIT’s transparency index, publishing online budgets, quarterly reports, and citizens’ guides.
Their progress stems from openness and economic pragmatism, not just location.
South-East: Fiscal Prudence, Limited Scale
States like Anambra, Abia, and Enugu rank high in fiscal responsibility but low in size of revenue. The region’s combined 2024 income was under ₦900 billion, yet its average capital expenditure ratio (44%) beats the national mean.
BudgIT rates Anambra among the top three in budget transparency and citizen engagement.
Small revenue, smart management—the Southeast shows what discipline can achieve without oil.
South-South: Rich but Reckless
Despite receiving the largest FAAC allocations (₦3.1 trillion), the region’s poverty and infrastructure gaps remain alarming. Delta, Bayelsa, and Akwa Ibom lead in earnings but trail in fiscal efficiency.
Their transparency scores hover below 50%, with minimal public access to spending data.
The South-South proves that resource wealth without openness breeds waste.
North-Central: Steady Reformers
Kwara, Nasarawa, and Benue are among the few northern states improving fiscal disclosure. Kwara publishes quarterly debt and expenditure reports; Nasarawa leads in open-budget rankings.
Still, overall regional revenue growth lags behind inflation, and capital projects remain underfunded.
Governance here is improving, but growth is slow.
North-East: Dependency and Displacement
Conflict, insecurity, and weak institutions weigh heavily on Borno, Yobe, and Adamawa. FAAC covers over 90% of their total budgets, while IGR remains negligible.
Transparency is lowest in this region—average disclosure score under 35%.
Where accountability dies, poverty multiplies.
North-West: Population without Productivity
Kano, Kaduna, Katsina, and Sokoto command huge populations but thin fiscal discipline. Average IGR-to-FAAC ratio: 15%. Only Kaduna and Jigawa publish accessible budget performance data.
High numbers, low accountability—the North-West’s crisis is managerial, not monetary.
Transparency as a Development Driver
BudgIT’s analysis leaves no doubt:
States that disclose more tend to deliver more.
Where citizens can see and question spending, governors plan better, leakages shrink, and trust rises. Lagos, Anambra, Kwara, and Ekiti all rank high on transparency—and also lead in fiscal performance and service delivery.
By contrast, the least transparent states—mostly in the North-East and South-South—show the weakest welfare outcomes.
Transparency is not a moral luxury; it is an economic strategy.
The Federal Example — Or Lack of It
Transparency begins at the top, yet Abuja still treats fiscal openness as a privilege, not a right.
Despite progress in publishing budget summaries, the Federal Government’s detailed expenditure reports remain fragmented. The Social Investment Programme, subsidy savings, and palliative funds lack full disclosure of beneficiaries and outcomes.
This culture trickles down: when the centre hides, the subnationals follow suit.
A transparent federation cannot emerge from opaque leadership.
Ranking the Regions by Fiscal Openness and Performance
| Region | Avg. FAAC (₦trn) | Avg. IGR (₦bn) | Transparency Level | Overall Governance Quality |
| South-West | 2.68 | 1,250 | High (75–85%) | High |
| South-East | 0.90 | 300 | Moderate–High (65–70%) | High |
| South-South | 3.10 | 470 | Low–Moderate (40–50%) | Mid |
| North-Central | 1.45 | 350 | Moderate (55–60%) | Mid |
| North-West | 1.85 | 300 | Low (35–45%) | Low |
| North-East | 1.05 | 200 | Very Low (30–35%) | Low |
Source: BudgIT State of the States 2025 Report (adjusted estimates).
The data confirms a pattern: regions that disclose more develop faster.
Openness correlates strongly with higher IGR, better capital-to-recurrent ratios, and improved welfare outcomes.
Why Transparency Matters Beyond the Books
Transparency isn’t just about publishing numbers—it’s about changing relationships.
When budgets are public, citizens participate. When contracts are tracked, corruption shrinks. And when accountability becomes routine, innovation follows.
That’s why Lagos attracts investors more easily than Bayelsa, and why Anambra can plan sustainably while richer states stumble.
Transparency doesn’t cost money; secrecy does.
The Reform Roadmap: Building Trust Region by Region
- Codify Transparency as Law, Not Choice:
Every state should legally mandate open-data publication of budgets, debt, and procurement. - Regional Peer Review:
Governors’ forums should publicly compare fiscal results and reward progress in transparency and citizen engagement. - Federal Incentives for Openness:
Abuja should tie infrastructure or bailout funds to demonstrated fiscal disclosure. - Digital Access for Citizens:
Simplify how citizens access state budget data—apps, dashboards, or mobile-friendly reports.
Final Reflection
The story of Nigeria’s uneven development is not a tale of north versus south, or rich versus poor — it is a story of open versus closed.
Where information flows, progress follows.
Where secrecy reigns, poverty persists.
The 2025 BudgIT report doesn’t just expose figures; it exposes philosophy — showing that development begins not with new revenue, but with renewed accountability.
Until every region embraces transparency as the foundation of governance, Nigeria will remain a country where prosperity is regional, but poverty is national.
Because in the end, sunlight, not oil, is the real resource that grows nations.
