A new report by BudgIT highlights a stark disparity in Nigeria’s subnational fiscal performance, revealing that Lagos State generated 44.5%—or N1.845 trillion—of the total N4.15 trillion Internally Generated Revenue (IGR) recorded by reporting states in 2025. While aggregate IGR rose significantly from N1.565 trillion in 2022, the concentration of revenue in a few commercial hubs underscores a systemic reliance on federal allocations for many states. Experts urge underperforming states to prioritize tax base expansion, digitize collection to plug leakages, and improve the local business environment to attract private investment.