Jigawa, Ondo, Anambra Lead Subnational Fiscal Health

A select group of Nigerian states demonstrated superior fiscal resilience last year, maintaining robust revenue generation relative to their borrowing. According to recent data, Jigawa, Ondo, and Anambra secured the top three positions for the lowest debt-to-IGR ratios in 2025.

These states distinguished themselves by pairing relatively strong internally generated revenue (IGR)—funds collected independently of federal allocations—with conservative debt profiles. This balance allows regional governments to service obligations more comfortably while funding local development.

Fiscal Divergence Across States

The strong performance of Jigawa, Ondo, and Anambra highlights a growing divergence in fiscal health among Nigeria's subnational entities. While these states successfully leveraged internal revenue streams to keep debt burdens manageable, other regions face mounting liabilities.

Recent figures indicate that subnational debt across the country reached N4.59 trillion in the second quarter of 2026, with major economic hubs such as Lagos, Delta, and the Federal Capital Territory leading in total debt accumulation.

Why it matters

Debt-to-IGR ratios serve as a critical metric for evaluating the financial autonomy and creditworthiness of state governments. When subnational entities rely heavily on federal transfers without building independent revenue bases, macroeconomic shocks can severely constrain their budgets. Efficient internal revenue mobilization provides a buffer against external economic pressures.

What to watch

Observers will monitor how regional administrations manage their debt trajectories amid ongoing national economic reforms. Analysts also track whether fiscal discipline in top-performing states translates into sustained infrastructure investment without overreliance on borrowing.