Lagos tops 2025 State Performance Index from Phillips Consulting

Lagos tops 2025 State Performance Index from Phillips Consulting

16 July 2025 Consultancy.africa
Lagos tops 2025 State Performance Index from Phillips Consulting

Lagos State has once again cemented its position as Nigeria’s economic powerhouse, emerging as the overall leader in the 2025 State Performance Index from Phillips Consulting. The benchmark highlights Lagos’s leadership in fiscal strength, innovation, and service delivery.

Now in its third edition, the State Performance Index is an evidence-based tool that evaluates the performance of Nigeria’s 36 states and the Federal Capital Territory (FCT). Developed by Phillips Consulting, one of Africa’s leading consultancy firms, the index was developed to provide a fact-based assessment of how Nigeria’s states are performing across critical dimensions such as health, education, infrastructure, governance, economic development, and digital access.

The 2025 edition draws on data from 37 key performance indicators (KPIs) and the experiences of nearly 10,000 respondents nationwide.

Why Lagos won

Lagos State topped the index due to its outstanding performance across multiple metrics, particularly Internally Generated Revenue (IGR) – a key indicator of fiscal sustainability and governance capacity.

According to the report, Lagos outperformed all other states in revenue mobilisation, infrastructure investment, and private sector dynamism. Its economy, anchored by Nigeria’s busiest ports and a thriving commercial base, continues to generate the momentum needed for sustainable growth.

“Lagos is the economic nerve centre of the country,” said Victor Mba, Head of International Development at Phillips Consulting. “Its ports alone, and the activities around importation and logistics, are enough to drive revenue. But what’s key is that Lagos has provided a functional platform for private sector growth. That’s what sustains this momentum.”

Lagos tops 2025 State Performance Index from Phillips Consulting

Source: Phillips Consulting

Mba added that Lagos’s success lies in turning its economic assets into lasting social and fiscal impact, with visible progress in governance, urban reform, and digital service delivery. These strengths earned Lagos the highest score within the index’s five-star rating framework, reinforcing its reputation as both Nigeria’s financial capital and a governance leader.

Other States making strides

While Lagos led the overall rankings, several other states earned recognition for innovation, reform, and fiscal discipline. Ogun State came second in Internally Generated Revenue performance, reflecting its growing industrial capacity and effective partnerships with private investors.

Jigawa State was commended for its pragmatic approach to attracting investment. Its new one-stop-shop investment hub has streamlined bureaucratic procedures for investors – a move that, according to Mba, “means you don’t need to go to different ministries for permits; everything is done in one place.”

Meanwhile, Edo State continues to stand out for its digitisation of public services, including responsive communication platforms and digital training for civil servants. “It’s one of the few states with a functional government domain address,” Mba noted, highlighting Edo’s growing competence in e-governance.

Other states also performed strongly in specific areas. Akwa Ibom ranked first in environmental cleanliness and third in water access, reflecting effective delivery in basic services. Gombe, Jigawa, Niger, and Osun earned high citizen satisfaction ratings, demonstrating that smaller states can achieve excellence through responsive governance.