LAGOS — Lagos State has officially been named the best-performing state in Nigeria according to the 2025 Phillips Consulting State Performance Index (pSPI), making it the only state in the country to secure an "Exceptional" five-star rating.
The annual assessment, released by the business and management consulting firm Phillips Consulting (pcl.), provides a comprehensive evaluation of governance and development outcomes across Nigeria’s 36 states and the Federal Capital Territory. The index utilizes a methodology that balances objective performance data such as audited financial reports and statistics from the National Bureau of Statistics with primary citizen perception surveys to measure institutional effectiveness.
According to the report, Lagos State distinguished itself through a commanding lead in internally generated revenue (IGR), robust infrastructure development, and consistent private-sector growth. While many states remain heavily reliant on federal allocations, the index highlighted Lagos’ ability to generate and deploy significant local resources to finance public services, transportation networks, and urban renewal projects.
The assessment ranked the states using a five-tier system ranging from one to five stars. While Lagos stood alone in the top tier, other states including Ogun, Kaduna, Adamawa, and Niger earned four-star ratings, reflecting strong performances in several development metrics, though they did not match the overall governance effectiveness and fiscal sustainability observed in Lagos.
Phillips Consulting noted that the pSPI is intended to serve as a strategic governance tool for policymakers. By identifying performance gaps and benchmarking progress, the index aims to encourage accountability and evidence-based reforms across the federation. The report further noted that the 2025 results mark a growing separation between the top-performing states and the rest of the country, underscoring the competitive nature of Nigeria’s subnational governance.
