Philips Consulting Rates Lagos Nigeria’s Best State, Gives Her Five Star Performance

• Ogun, Kaduna, Adamawa, Niger follow with four-star ratings

Oluwaseyi Adedotun

A Nigerian-based business and management consulting firm, Philips Consulting, has rated Lagos as the best state in Nigeria, emerging the only state with a five-star rating in the 2025 Phillips Consulting State Performance Index (pSPI).

The comprehensive assessment of governance and development outcomes across the country, has however proven Lagos as Nigeria’s leading subnational.

The annual ranking evaluated the 36 states and the Federal Capital Territory across critical sectors, including fiscal management, economic development, infrastructure, healthcare, education, governance, environmental sustainability and digital access.

The assessment combined objective development data with citizens’ perception surveys to provide a holistic measure of state performance.

As revealed in the performance index report, Lagos stood alone in the elite five-star category, earning what the report described as an “exceptional” rating and placing first overall among all states of the federation.

Trailing Lagos were Ogun, Kaduna, Adamawa and Niger States – securing four-star ratings under the index’s performance framework.

While these states were recognised for strong performances in several development indicators, none matched Lagos in the overall governance effectiveness, economic resilience and service delivery.

The result further widened Lagos’ lead as Nigeria’s most economically vibrant state and underscored the impact of years of sustained investments in infrastructure, technology, transportation, urban renewal, institutional reforms and continuity in governance.

According to the report, Lagos distinguished itself through exceptional performance in internally generated revenue, infrastructure development, private-sector growth and public service delivery.

The state maintained a commanding advantage in revenue generation, a key indicator of fiscal sustainability and government capacity.

Phillips Consulting noted that Lagos’ strategic position as Nigeria’s commercial and financial capital continued to drive its impressive performance.

The state’s extensive transportation network, thriving business ecosystem, ports infrastructure and concentration of private enterprises contributed significantly to its dominance.

The report also highlighted Lagos’ leadership in innovation and digital transformation, noting that technology-driven governance reforms and digital service delivery initiatives have strengthened transparency, efficiency and citizen engagement.

It also showed that unlike many states that remained heavily dependent on federal allocations, Lagos has consistently demonstrated the ability to generate and deploy local resources to finance development projects and expand public services, a factor that weighed heavily in the final assessment.

The 2025 index adopted a methodology that assigned 70 per cent weight to objective performance indicators and 30 per cent to citizen perception scores.

Nearly 10,000 respondents participated in the survey component, providing insights into public confidence in governance and service delivery.

Analysts observed that Lagos’ emergence as the sole five-star state reflected not only its economic strength but also the effectiveness of governance structures that have evolved over successive administrations.

The latest ranking is particularly significant when compared with previous editions of the performance index.

While Lagos has consistently featured among Nigeria’s top-performing states, the 2025 result marked a stronger separation between the state and its closest competitors, with no other state attaining the coveted five-star category.

Ogun State, which ranked second overall, maintained its reputation as one of Nigeria’s most industrialised states, while Kaduna, Adamawa and Niger demonstrated notable improvements that earned them places in the four-star bracket.

Their performances indicated growing competitiveness among Nigeria’s leading states, even as Lagos continued to set the pace.

Phillips Consulting emphasised that the purpose of the index extended beyond ranking states.

According to the firm, the report was intended to serve as a strategic governance tool, helping policymakers identify performance gaps, benchmark progress and implement evidence-based reforms.

With its emergence as the country’s only five-star state in the 2025 pSPI, Lagos has reinforced its position as Nigeria’s benchmark for governance, economic development and public-sector performance, further raising the bar for other states seeking to accelerate growth and improve the quality of life for their citizens.