Lagos State has emerged Nigeria’s best-performing sub-national in the 2025 State Performance Index (pSPI), leading other states by wide margins across all sectors.
In a latest ranking released by Phillips Consulting Limited, Nigeria’s leading business and management consulting firm, Lagos is ranked number one in the National Assessment Report out of the 36 states and the Federal Capital Territory (FCT), Abuja in the Overall pSPI Rank, based on continued strength across key governance and economic indicators.
The 2025 State Performance Index (pSPI) identifies Lagos as Top Revenue Performer, stating that “Lagos ranks 1st in IGR per capita, per km², and per trade route.” It also ranked Lagos as second in internet penetration and digital access.
The report rates Lagos positively in High Financial Independence, stating that “69 per cent of Lagos State’s revenue comes from IGR, significantly higher than the national average of 18 per cent, reducing reliance on federal allocations.”
Phillips Consulting Limited describes pSPI as a tool for measuring governance effectiveness and identifying areas requiring policy intervention.
“The 2025 edition of the pcl. State Performance Index (pSPI) builds on the 2024 report with a sharper, more data-driven approach. It expands performance indicators and reduces focus from perception to measurable outcomes, ensuring states are rated based on real progress, effort and impact,” it stated.
Speaking on the performance of Lagos state, the report states that: “Lagos is the economic backbone of Nigeria, and the data confirms it. With a GDP larger than several African countries such as Mali, Gabon, Togo, Namibia, Malawi, Lesotho, Guinea Bissau, Liberia, Djibouti, Gambia, Seychelles, Sao Tome and Principe, Burundi, Cape Verde, Eritrea among others, Lagos’s economy thrives on a powerful mix of commerce, finance, technology, and international trade.
“Lagos is financially self-reliant, generating the bulk of its revenue internally rather than depending on federal allocations. Its strategic port access, thriving informal economy, and dominance in financial services make it Nigeria’s undisputed economic leader.”
According to the 2025 State Performance Index, Lagos State is followed by Ogun and Kaduna. Adamawa and Niger states complete the top five. Nasarawa and Gombe occupy sixth and seventh positions. Jigawa, Plateau and Abia are in eighth, ninth and 10th positions to complete the top 10 list in the assessment.
Speaking on the report, Governor Babajide Sanwo-Olu said the ranking is consistent with other related reports that have scored Lagos high and above other states.
He said: “It gladdens our hearts that our administration’s modest achievements are having direct, positive and measurable impacts on the people of Lagos.
“What the latest ranking has done is for us to get back to work and do it a lot better and smarter. Our state was recently ranked among the best in the world in nightlife by UK’s Time Out magazine, coming second behind Cape Town, South Africa in the continent. We beat Cairo in Egypt and Marrakech, Morocco to the third and fourth places respectively.
“Earlier in the year, a Netherlands based firm, Dealroom.com named Lagos as the fastest-growing tech ecosystem in the world in its Global Tech Ecosystem Index 2025 report.
Lagos came ahead of Istanbul, Turkey and India in the report.
“We also emerged as the top performing State in Nigeria in the Presidential Enabling Business Environment Council (PEBEC) Ease of Doing Business 2026 rankings, which was released in March this year. The ranking, based on the 2025
Subnational Ease of Doing Business Report covering all 36 States of the Federation and the Federal Capital Territory, reinforced the position of Lagos as the country’s leading and preferred destination for investment.
“We have a mission to deliver a greater Lagos before the end of our tenure and we won’t rest until the last day of this government, working for the people of the state.” Sanwo-Olu said.
