Lagos State has secured the top position in the 2025 Philips Consulting Limited State Performance Index, cementing its reputation as Nigeria’s economic powerhouse and governance leader across 36 states and the Federal Capital Territory.
The annual assessment, now in its second year, has evolved into a comprehensive evaluation framework that measures sub-national performance through data-driven metrics rather than perception-based assessments. This methodological shift reflects Nigeria’s growing demand for evidence-based governance and measurable developmental outcomes.
Lagos State’s dominance was particularly evident in Internally Generated Revenue performance, where it significantly outpaced all other states. The state’s position as Nigeria’s commercial nerve center, supported by thriving ports, robust private sector activities, and dynamic infrastructure development, contributed to its exceptional performance.
“Lagos is the economic nerve centre of the country,” explained Victor Mba, Head of International Development at Philips Consulting’s Abuja office. “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.”
The state’s success stems from its ability to leverage commercial advantages into sustainable revenue generation and efficient service delivery, earning it the highest score in the index’s 5-star rating system. This performance translates directly into improved economic opportunities for businesses and enhanced public services for residents.
Ogun State followed closely in IGR performance, reflecting the southwestern region’s growing industrial capacity and successful private sector partnerships. The report also highlighted innovative approaches by other states, including Jigawa’s establishment of a “one-stop-shop” investment hub that streamlines bureaucratic processes for investors.
Edo State received recognition for digitizing its entire public service structure, implementing responsive communication channels, and training civil servants for effective digital platform engagement. These technological advances position the state as a model for digital governance transformation.
The index’s evolution toward outcome-focused assessment represents a significant shift in how Nigeria evaluates sub-national performance. By prioritizing measurable progress over subjective perceptions, the framework encourages states to focus on tangible improvements that directly impact citizens’ lives and economic opportunities.
Economic analysts view Lagos State’s continued leadership as validation of strategic investments in infrastructure, business-friendly policies, and revenue diversification efforts. The state’s performance demonstrates how effective governance can translate natural economic advantages into sustained development outcomes.
Looking ahead, the index is expected to drive increased competition among states to improve their performance metrics, potentially accelerating development across Nigeria’s sub-national entities. This competitive dynamic could yield significant benefits for economic growth and improved governance standards nationwide.
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